Tomra Systems ASA said it expects a considerable improvement in margins in the second quarter, while sales growth is expected to be lower than in the first quarter.
Revenue growth in the second quarter 2002 relative to the same period in 2001 is expected to be lower than in the first quarter, but the board expects a considerable improvement in margins, it added.
Tomra, which has operations throughout Europe and North America, also addressed a number of issues affecting its business. In Germany, the government announced deposit on non-refillable containers as of Jan. 1, 2003. New court cases have been filed in the Constitutional Court in Karlsruhe and in the Administrative Courts in all sixteen Bundesländer. According to statements made by the German Ministry of Environment, the court cases will not have suspensive effects on the implementation of deposit. Tomra has decided to maintain its expanded capacity tied to the German deposit start-up.
In Denmark, the Danish government announced early this year that it would open the market for non-refillable containers for carbonated drinks with immediate effect. The start-up of automated handling of non-refillable containers through RVMs will be June 1, 2002. In the first quarter Tomra installed and upgraded approximately 550 machines in Danish supermarkets.
In Sweden, revenue in the first quarter increased by 44 percent, driven by replacement of machines. The replacement of existing machines is expected to continue to drive revenue growth in Sweden in 2002.
In the United States, Tomra announced that restructuring in California has developed according to plan The operating performance stabilized in California during the first quarter, and the company expects to reach a break-even level during the second half of this year.