ICT CONCLUDES SATISFACTORY FIRST QUARTER
05/26/2004
ICT Automatisering N.V. (ICT) has concluded the first quarter of 2004 in line with developments in the second half of 2003. ICT expects the first half of 2004 to show an improvement of the results of around 10% and a slight increase in turnover, compared with the first half of 2003. However, market conditions remain uncertain and there are as yet no signs of a structural recovery in the market. The unpredictability of the market means there is insufficient insight to give a firm outlook on the development of turnover and result for the full-year 2004. ICT will announce this at today’s shareholders meeting.
ICT focuses on a limited number of spearheads within its existing divisions. This far-reaching form of specialisation allows ITC to deliver added value, even in difficult market conditions. As announced earlier, ICT made the first moves in 2003 towards a further specialisation within both ICT Embedded as well as ICT Solutions. ICT aims to focus on a limited number of spearheads per market segment. ICT expects both divisions to complete this process in the coming months.
ICT is currently assessing whether it is desirable and useful to launch activities in a region with lower labour costs. The company has determined that more time is needed to develop a solid business case, which means the initial go/no-go decision will not be taken in May, but in the fourth quarter of 2004.
The markets in which ICT operates are still characterised by uncertainty and a low willingness to invest. As a result, projects are being postponed or executed at a lower pace.
In this continuing weak climate, ICT is seeing its strategic choices validated. Thanks to its strong market position and innovative strength, ICT has proven it is able to further strengthen its position even in the current conditions, while the above-mentioned negative factors are to a certain extent offset by the acquisition of new clients.
The number of employees had fallen slightly at the end of the first quarter to 802, compared to 805 at year-end 2003.