/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/031127.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Thursday, November 27, 2003, Vol. 4, No. 235 Headlines B E L G I U M FORTIS N.V.: Strong 9-month Performance Returns Insurer to Black REAL SOFTWARE: Shareholders Endorse Restructuring Plans C Z E C H R E P U B L I C FISCHER GROUP: Owner Injects US$13 Million into Ailing Business F R A N C E ALSTOM SA: Wins Orders Worth EUR54 Million in Chile G E R M A N Y BERTELSMANN AG: Cleared to Acquire Rival Paperback Publisher DRESDNER BANK: Names New Management Board Members KAMPS AG: 9-month Sales Up, But Net Remains EUR28 Million in Red MUNICH RE: Nine-month Operating Results Down 50% Year-on-year WESTLB AG: 3rd Qtr Operating Results Likely in Red, Says Report N E T H E R L A N D S HAGEMEYER N.V.: No Decision on Refinancing Yet HAGEMEYER N.V.: Hires Strategic Financial Advisor KONINKLIJKE AHOLD: Wal-Mart Intent on Acquiring Brazilian Unit PETROPLUS N.V.: Key Indicators Remain Negative ROYAL PHILIPS: Establishes Joint Venture with Jilin in China N O R W A Y STOLT-NIELSEN SA: Vows to Fight Dow Chemical's Price-fixing Suit P O L A N D NETIA SA: Minority Shareholders Challenge Merger Resolution S W E D E N SKANDIA INSURANCE: To Bare Internal Audit Results December 1 S W I T Z E R L A N D ABB LTD.: Sharpens Focus of Automation Business SWISS LIFE: Chairman Confirms Sale of Banca Del Gottardo SWISS LIFE: U.K. Regulator Abandons Review of Unum Transaction U N I T E D K I N G D O M BOMBARDIER INC.: British Workers on Chopping Block CHARTER PLC: Shareholders Okay Disposal of U.S. Defense Business EMI GROUP: Ratings Affirmed on Withdrawal of Warner Music Offer HOLLINGER INC.: Disputes Alleged Influence of Rival Publisher INVENSYS PLC: Six-month Results Now Available for Viewing KINGSTON COMMUNICATIONS: First-half Pre-tax Results Improve MG ROVER: Suspends Production for a Week MYTRAVEL GROUP: Completes Sale of Lexington to Canada Inc. ********* ============= B E L G I U M ============= FORTIS N.V.: Strong 9-month Performance Returns Insurer to Black ---------------------------------------------------------------- Fortis N.V. posted these latest financial updates recently: (a) Net profit amounted to EUR677 million, an increase of EUR2.3 billion. In the third quarter of 2002 negative value adjustments on the equity portfolio resulted in a net loss of EUR1.6 billion. (b) Net operating profit excluding value adjustments on the equity portfolio increased by 16% to EUR539 million as a result of increased interest margins, improved Non-life results and reduced costs. Main developments in the first nine months of 2003, compared to the same period in 2002: (a) Net profit amounted to EUR1.3 billion compared with a loss of EUR87 million in 2002. (b) Net operating profit excluding value adjustments on the equity portfolio increased by 6% to EUR1,961 million. (c) Premium income in insurance increased by 4% to EUR13,448 million. In the Benelux premiums improved 15% to EUR7,911 million. (d) Total banking revenues net of interest expense fell 4% to EUR6,008 million as a result of the deteriorating economic conditions since the third quarter of last year. However there are signs of improvement with an 8% increase in net interest income in the third quarter compared to the second quarter of this year. (e) Operating costs (excluding insurance commissions and lease costs) continue to be well controlled and fell by 4% in the first nine months of this year. These savings are on top of the 3% cost reduction already realized in 2002. Total FTEs decreased by 3% to 63,931. In 2003, we remain on target to hold total operating costs at the same level as 2002. (f) The negative net value adjustment on the equity portfolio was EUR585 million at the end of the third quarter (at November 21 approximately EUR400 million), compared with EUR2.1 billion for the same period last year. (g) Fortis' already strong solvency improved. At November 21, the net core capital, excluding fourth quarter results, amounted to EUR17.8 billion, EUR8.0 billion (82%) above the legally required minimum and EUR2.2 billion (14%) above Fortis' own floor. To see full copy of financial results: http://bankrupt.com/misc/Fortis_3Q.pdf REAL SOFTWARE: Shareholders Endorse Restructuring Plans ------------------------------------------------------- On November 24, 2003, an extraordinary general meeting of Real Software N.V. took place. At this meeting 15,818,610 shares, i.e. 51.96 % of the share capital, were present or represented. The assembly confirmed its trust in the present directors and appointed Jean-Paul De Wachter as additional director. The assembly ordered the board of directors to pursue the debt restructuring negotiations with the bank consortium along the guiding principles that were published in the company's press releases of October 10 and 23, 2003. The assembly decided to continue the company's activities according to Article 633 of the Company Code, as long as the negotiations with the bank consortium carry on. Prior to the assembly, management gave an informal presentation to the shareholders about the results of the third quarter. A copy of this presentation is available on the company's Web site (http://www.realsoftware.be,chapter "Investor Relations, more financial info"). =========================== C Z E C H R E P U B L I C ============================ FISCHER GROUP: Owner Injects US$13 Million into Ailing Business --------------------------------------------------------------- Vaclav Fischer has ploughed more money into his company a few months after a debt buyout spared it from certain demise, Czech Happenings said recently. Citing Mr. Fischer's spokeswoman, Vera Kudynova, the paper said the entrepreneur contributed US$13 million (over CZK360 million) into Fischer group in mid-November. Mr. Fischer had previously said he could not move the money -- which Ms. Kudynova said came from his private activities in Germany -- before a certain date. Entrepreneur Karel Komarek rescued the group a few months ago by buying CK Fischer, Fischer Air and Fischer, s.r.o.'s CZK470 million debts to Komercni banka, Czech Airlines and Czech Airports Authority, in exchange for a 75% stake. The deal gave Mr. Komarek a say on the company's finances. Mr. Fischer remained in charge of the marketing and trading activities of his companies. CK Fischer expects to maintain sales of 300,000 package tours this year and a moderate loss for the last financial year that ended October 31, according to Ms. Kudynova. =========== F R A N C E =========== ALSTOM SA: Wins Orders Worth EUR54 Million in Chile --------------------------------------------------- Merval S.A. (Metro Regional de Valparaiso) has awarded Alstom three orders worth EUR54 million, as part of its Cuarta Etapa (Fourth Stage) project and its program for improvement and modernization of passenger service on a 43-kilometer line between the port of Valparaiso and the city of Limache. In November 2002, Merval awarded Alstom a contract for the supply of 27 two-car X'TRAPOLIS trains and their maintenance over a 10-year period. Merval has now exercised an option in that contract for an additional 18 years of maintenance, an order worth EUR30 million. Including the two years of maintenance in the initial warranty period, Alstom will maintain the trains for 30 years. Merval has also awarded Alstom contracts worth EUR24 million for signaling, train control and power supply for the railway line. "We're delighted with this renewed vote of confidence in Alstom," said Philippe Mellier, President of Alstom Transport, "and we look forward to building on the long-term partnership we have established with Merval. These three new orders, along with the initial train order, demonstrate the breadth and competitiveness of Alstom's rail transport offerings." CONTACT: ALSTOM S.A. Investor relations E. Chatelain Phone: +33 1 47 55 25 33 E-mail: Investor.relations@chq.alstom.com ============= G E R M A N Y ============= BERTELSMANN AG: Cleared to Acquire Rival Paperback Publisher ------------------------------------------------------------ Germany's antitrust authority has given Bertelsmann's book publishing unit, Random House, the go-ahead to buy German paperback publisher, Wilhelm Heyne Verlag GmbH, according to Dow Jones. The Federal Cartel Office determined that the purchase of the printer from Axel Springer would not violate the 30% threshold at which a market dominant position is defined. While the acquisition would benefit Bertelsmann, it would not put in danger competition in the German paperback market, it said in a statement. Objections from the Cartel Office prompted Bertelsmann to withdraw earlier plans to acquire the entire book-publishing group Ullstein Heyne List from Axel Springer. This gave Sweden's Bonnier the chance to buy the remaining parts of the Ullstein Heyne group. The antitrust authority previously ordered Bertelsmann to abstain from about 40% of its original acquisition plans. The media company is currently saddled by a huge debt brought by the late-2002 acquisition of music company, Zomba. DRESDNER BANK: Names New Management Board Members ------------------------------------------------- Dresdner Bank AG, a unit of Allianz AG, has appointed new members to its management board. The appointments will take effect at the start of next year, according to Dow Jones. The bank made Caspar von Blomberg head of company development, responsible for strategic and business development across all areas of the Dresdner bank group. Bernhard Blohm was made head of corporate communications and head of executive board communications. Both will report directly to Chief Executive Herbert Walter. The management board also named Ulrich Sieber head of corporate banking and a member of the executive committee for corporate banking with immediate effect, responsible for products and production in corporate banking, among other functions. The appointments are with the approval of the supervisory board. The unit responsible for most of the losses at Allianz could remain firmly in the red in the third quarter, the German insurance giant said lately. Allianz expects a net profit figure short of analysts' expectations owing to the continued disappointing performance of the troubled bank. KAMPS AG: 9-month Sales Up, But Net Remains EUR28 Million in Red ---------------------------------------------------------------- Kamps AG, the bread and bakery goods company belonging to the Barilla Group, recorded an increased net sales in the third quarter of 2003, despite the difficult market environment affected by the summer heat wave and continued consumer migration to discount products. Net loss reduced Sales rose by 1.5% to EUR1,294.9 million (2002: EUR1,275.6 million) during the first nine months of 2003. At the same time EBITDA was increased slightly to EUR114.6 million (2002: 112.0 million) while the net result improved to -EUR28.7 million (2002: -EUR65.5 million). Debt substantially reduced after accelerated sale of 49% shareholding in Harrys The sale of Kamps 49% shareholding in Harrys to the Barilla Group, which was originally planned for year-end 2003, was brought forward to September 30, 2003. According to Kamps CFO Matthias Zachert, the proceeds will be used for the determined ongoing debt reduction, which will lead to substantially lower net debt in the current year. This will secure the necessary financial flexibility for the strategic repositioning of the Group. Transformation project started We have now initiated our fitness program for the Group. With the ongoing implementation we want to maintain and further strengthen our position as the leading European bread and bakery goods company. Over the next three years we will invest about EUR300 million in our brands, products and production facilities in order to restore profitability and realize sustainable earnings improvement for the Group, said Dr. Michael Kern, CEO of Kamps. In the branded bakery goods business, Kamps will reposition and strengthen Golden Toast and Lieken Urkorn, which are already Germanys two best-known bread brands. The relaunch of Lieken Urkorn will be the first measure in 2004, which will involve changes in the product range and an increase in advertising. Kamps aims to gain cost leadership in all business areas by further modernizing the production facilities. Particularly in the important business with branded label products for the retail sector, cost efficiency remains a key success factor. Additionally, Kamps plans to expand the rapidly growing bake-off business, which offers customers freshly baked goods in supermarkets. In the bakery shop segment of Kamps AG, the shop portfolio will be optimized and geared towards larger shops in prime locations. In the coming years we will open new shops in prime locations, modernize selected profitable existing shops in such locations, and steadily close shops in less attractive locations to improve overall profitability in the bakery shop business, added Kern. Kamps is reviewing the strategic options for the cake business with the Dan Cake brand. Despite its strong market position, this business is not achieving the desired margin. Options include possible joint-ventures with strong partners in the same segment or a sale of the whole division, commented Matthias Zachert MUNICH RE: Nine-month Operating Results Down 50% Year-on-year ------------------------------------------------------------- The Munich Re Groups business situation in the period under review up to September 30, 2003, and since then, has been marked by: The continuing satisfactory trend in underwriting business: A consistent underwriting policy has distinctly improved the results situation, especially in the property-casualty sector of both primary insurance and reinsurance. The marked recovery on the stock markets: At EUR247 million, writedowns and losses on the disposal of securities were comparatively small in the third quarter. The very successful capital increase: Munich Re raised nearly EUR4 billion from the issue of 50.9 million new shares. Shareholders benefited from a favorable subscription right and a rising share price. Dr. Jorg Schneider, member of Munich Res Board of Management: "We are satisfied with our company's business experience in the third quarter. Munich Re is entering the current renewal negotiations for reinsurance treaties buoyed by these figures. Further strengthened by the successful capital increase, we can exploit additional earnings opportunities." Details of the Munich Re Groups figures at September 30, 2003 Group premium income increased in the first nine months of 2003 to EUR30.7 billion (equivalent period last year: EUR29.6 billion). The operating result before tax was EUR1,062 million (as opposed to EUR2,201 million in the same period last year, although the latter figure is not really comparable because of various one-off factors). As a major part of the losses on equity investments are currently not deductible for tax purposes, the Munich Re Group made sufficient provision in the second quarter for a potential tax burden, whose exact amount for the life and health insurers in the Group will depend on the outcome of the current German legislation process. In addition to the after-effects of the stock market slumps of the previous quarters, this tax provision impacted the Groups post-tax result of -EUR451 million (3,239 million). Reinsurance: Combined ratio again below 100% The Groups reinsurers achieved strong organic growth in original currencies, but this was masked by the significant appreciation in the value of the euro, especially against the U.S. dollar. Premium income again remained at a high level in the first nine months, totaling EUR19.1 billion. Without the effects of changes in exchange rates, it would have risen by 9.9%. The combined ratio for the third quarter was 99.3% (114.1%). The ratio for the first nine months improved by 8.7 percentage points to 97.0%, the figure for the comparable period last year having been adjusted to eliminate the effects of the reserve strengthening at American Re and for the World Trade Center loss (a total of 21.6 percentage points). Losses from natural catastrophes contributed 1.4 percentage points to the combined ratio in the first nine months. In September Hurricane Isabel hit the U.S. East Coast with wind speeds of up to 200km/h, causing serious damage in some areas. Nevertheless, the claims burden for the Munich Re Group remains within reasonable bounds at an estimated amount of nearly EUR50 million. Maemi, the strongest typhoon in South Korea since records began in the year 1904, and Hurricane Fabian in the Bermudas, gave rise to claims costs for Munich Re of up to EUR30 million in each case. On top of this, the Munich Re Group incurred several major losses in the mid two-digit million euro range that were not attributable to natural events: the biggest power failure ever in the U.S. North East and Canada, which affected around 50 million people, and two satellite losses. There were also some large fires in industrial plants. The investment result for the reinsurance segment amounted to EUR1,921 million for the first nine months; last years result of EUR7,777 million for the comparable period was influenced by the income from the shareholding transactions with Allianz. The investment result for the third quarter was EUR750 million (361 million). As expected, expenses for writedowns and losses on the disposal of securities were only small in the third quarter compared with the previous quarters, totaling EUR131 million. In the first six months they had been EUR714 million. The reinsurers result before amortization of goodwill was EUR1,258 million (3,729 million) for the first nine months and EUR376 million (-553 million) for the third quarter. Reinsurance contributed EUR315m (4,673m) to the Groups overall result after tax in the first nine months. Thanks to its selective, strictly profit-oriented underwriting policy, American Re recorded a positive post-tax result of US$320 million. Munich Res largest foreign subsidiary is successfully taking advantage of the opportunities in the U.S. insurance market. Primary insurance: Steady growth with positive underwriting result in third quarter In the first nine months of 2003, the Groups primary insurers increased their premium income by 7.0% to EUR13.0 billion (12.2 billion), and in the third quarter by 7.8% to EUR4.1 billion. This good development was particularly due to life insurance, where premium income rose by 7.2% compared with the first nine months of last year, reaching EUR5.5 billion (5.1 billion). The steady growth was fuelled by new business and by business in force with index-linked premium adjustments. The Groups health insurers recorded premium income of EUR3.4 billion (3.2 billion) for the first nine months. Growth in Germany has mainly derived from premium increases for existing business as a consequence of higher benefits. In new business, on the other hand, uncertainty is being engendered by the ongoing socio-political debate, which is delaying the necessary reform of health insurance in the direction of a funded as opposed to pay-as-you-go system. In property-casualty insurance, the primary insurers wrote gross premium of EUR4.1 billion (3.9 billion) between January and September. A long-standing prudent underwriting policy applied to the acceptance of new business, combined with cost-reduction measures, means that the combined ratio for the first nine months shows further very positive development: it now amounts to 96.3% compared with 102.1% in the same period last year (including legal expenses insurance in each case). The Groups primary insurers continue to focus on the profitable expansion of their core fields of business and on increased internal efficiency. Product and distribution policy is geared to enhancing the profitability of their business. The primary insurers investment result was EUR2,567 million (526 million) for the period from January 1 to September 30, 2003 and EUR1,745 million (-1,887 million) for the third quarter. As expected, in the primary insurance segment, too, expenses for writedowns and losses on the disposal of securities were on the low side in the third quarter compared with the previous quarters, totaling EUR116 million. In the first six months they had been EUR2,115 million. The primary insurers result before amortizations of goodwill amounts to EUR64 million (-537 million) for the period January to September and -EUR3 million (-652 million) for the third quarter. The primary insurers contribution to the post-tax Group result for the first nine months amounts to -EUR751 million (-676 million). This clearly reflects the impact of tax expenditure, which is largely due to the non-deductibility of writedowns and realized losses on equity investments in life and health insurance. A tax law amendment adopted by the German Bundestag has been referred to the mediation committee by the Bundesrat. Group investments: Recovery and diversification of investment portfolio In the third quarter, European and U.S. stock markets moved sideways after recovering appreciably in the first half of the year. At EUR247 million, writedowns and losses on the disposal of securities were low in the third quarter compared with the previous quarters. In the first half year they had totaled EUR2,829 million. The after-effects of the weak stock markets have thus been largely absorbed in our securities available for sale. Unrealized gains on such investments exceeded unrealized losses at September 30 by a sizeable EUR5.0 billion. Equity exposure was slightly reduced and the portfolio more strongly diversified by cutting back on investment in European equities in favor of Japanese stocks. As at September 30, 2003, the Munich Re Groups investments had increased to EUR165.9 billion, compared with EUR156.3 billion at the end of 2002. The investment result amounted to EUR4.2 billion for the first nine months and EUR2.3 billion (-1.6 billion) for the third quarter. Outlook for 2003 as a whole Underwriting profits and value appreciation in the investment portfolio increased shareholders equity in the first nine months by EUR1.0 billion to EUR14.9 billion (end of 2002: EUR13.9 billion). Since then there has also been the capital increase with which Munich Re broadened and optimized its capital base in October and November. This can be used to take better advantage of profitable business opportunities, especially in reinsurance. The favorable subscription rights for the new shares were virtually all exercised -- very largely by the existing shareholders. At the same time, despite the adjustment to take account of the subscription right, Munich Res share price even showed a pleasing increase. Munich Re raised nearly EUR4.0 billion from this capital measure. It regards the very positive response to the capital increase as a sign of confidence and also as a mandate. The Board of Management team, which will be led by Dr. Nikolaus von Bomhard from January onwards, has set itself the objective of achieving sustained success again in all segments. With the early sale of its 25.7% stake in Hypo Real Estate Holding AG in October, Munich Re significantly reduced its exposure in the German banking sector. The spin-off of Hypo Real Estate from HypoVereinsbank and the above-mentioned sale results in a loss that will impact the result for the fourth quarter. In mid-November, Munich Re sold 7.5 million Allianz shares, thus lowering its stake in Allianz to approximately 12.2%. The profit from this sale will also be booked in the fourth quarter. Altogether, Munich Re expects Group premium income for the business year 2003 to remain high at around EUR40 billion, in spite of erosion from changes in exchange rates. Based on the very good business experience to date and the sustained improvements in prices and conditions, the combined ratio in reinsurance should be below 100%, assuming costs for major losses remain within normal bounds. In primary insurance, premium income will show a further increase in 2003, even after years of growth in excess of the market average. Measures designed to enhance efficiency are set to achieve appreciable cost savings. In life insurance, a reduction of the guaranteed interest rate will come into force for the whole industry in Germany as at 1 January 2004. Recalculated rates and revised product ranges among the life insurers in the Group are intended to further increase their profitability in future. It is also to be expected that the combined ratio in property-casualty business will show a further slight improvement. The Group result for 2003 will be subject to countervailing influences: On the one hand, it will be burdened by the writedowns and losses on disposals and by the high provision for tax. On the other hand, the good performance of the underwriting business will distinctly improve the earnings position. Assuming normal claims experience and stable capital markets, Munich Re expects to record a post-tax loss for the year 2003 purely due to the non-deductibility of a large portion of the writedowns and losses on the disposal of shares. The Group anticipates that the pre-tax result will show a very clear profit. To see key figures in first nine months results: http://bankrupt.com/misc/MunichRe_9Month.pdf To see quarterly report: http://bankrupt.com/misc/MunichRe_3Q.pdf WESTLB AG: 3rd Qtr Operating Results Likely in Red, Says Report --------------------------------------------------------------- WestLB will post an operating loss in the third quarter, its first quarterly loss this year, according to sources of the Financial Times. They estimate the fall into red to come at the EUR11 million- mark. It may also have to make further risk provisions of about EUR280 million (US$440 million), likely due to its main specialized finance deals, they added. KPMG is reviewing the business at the commission of BaFin, the German financial watchdog, after the Dusseldorf-based bank made unexpectedly high provisioning and losses because of the bank's lending businesses, in particular its principal finance unit in London. KPMG is believed close to completing the report. WestLB's business particularly suffered in June when customers got sour on the German bank because of its record EUR1.7 billion- loss for 2002, mainly due to a EUR1.9 billion of provisions and writedowns on a range of investments. WestLB declined to comment on the figures but said the third quarter was typically weak but full-year operating profits had improved on last year's EUR366 million, according to the report. ===================== N E T H E R L A N D S ===================== HAGEMEYER N.V.: No Decision on Refinancing Yet ---------------------------------------------- In reaction to the article on Hagemeyer in the Financieele Dagblad on Tuesday, Hagemeyer commented: Hagemeyer is presently working on refinancing alternatives. Discussions are also taking place with a financial investor. The decision-making process with respect to the refinancing is not completed. At this point in time it is not possible to give an exact indication on timing. ***** Hagemeyer N.V. recently reached an agreement with lenders to extend a standstill pact until February 9, 2004. This agreement allows for the continuation of the existing credit lines to support normal working capital and trade credit. The extension of the standstill agreement is intended to provide Hagemeyer and its lenders with sufficient time to implement an overall refinancing plan. The key terms and conditions of the standstill agreement are unchanged from those mentioned in the press release dated October 10, 2003. HAGEMEYER N.V.: Hires Strategic Financial Advisor ------------------------------------------------- Hagemeyer on Wednesday retained the services of Wiet Pot as Strategic Financial Advisor. He will work closely with the Board of Management with a specific focus on the financial restructuring of the Company and its successful completion. Mr. Pot, formerly Managing Director of Goldman Sachs, brings a wealth of experience in structuring complex financial transactions. KONINKLIJKE AHOLD: Wal-Mart Intent on Acquiring Brazilian Unit -------------------------------------------------------------- Wal-Mart Stores Inc. is edging closer towards acquiring Brazilian retailer, Bompreco, from Royal Ahold, a source close to the deal said, according to Reuters. "The company (Wal-Mart) has already chosen the executives that should work in Bompreco... in the first two weeks of December," the source told Reuters. The world's biggest retailer is negotiating the buyout as it tackles a court injunction blocking it from purchasing Ahold's smaller supermarket chain, G. Barbosa Comercial, the report said. The court issued the injunction for the sell-off of the two dominant retailers in northeast Brazil to the same buyer on antitrust grounds. Antonio Joao Rocha Messias, the Sergipe state prosecutor, told Reuters the heads of Wal-Mart and Ahold in Brazil discussed the injunction with state governor Joao Alves Filho last Friday. "Joao Alves kept his position that the two companies could not be sold together," he said. A spokeswoman for Wal-Mart in Brazil declined comment on the Ahold asset sale, according to Reuters. PETROPLUS N.V.: Key Indicators Remain Negative ---------------------------------------------- Petroplus International N.V., Europe's leading midstream oil company announces its third quarter 2003 results. Results from operational activities for the first nine months of 2003 showed a strong improvement compared to the results over the same period in 2002. Third quarter 2003 net income also increased compared to the second quarter 2003, but remained negative due to weak refining margins in July and August. The cost savings from the Antwerp refinery reorganization, for which a EUR40 million writedown was taken in the second quarter, will become effective early 2004. The full running costs of the Antwerp facility will therefore continue to be absorbed in the results until the end of 2003. EUR (000) Petroplus Q3 2003 Q3 2002 % change YTD 2003 YTD 2002 % change 1,452,381 1,143,969 27% Net Sales 4,697,356 3,542,992 33% 48,270 41,699 16% Gross Profit 155,846 127,440 22% 8,183 7,059 16% EBITDA 38,103 16,657 129% 226 803 (72%) Net Operating Income (26,152) (1,091) n.a. Adjusted NOI* 13,848 1,409 n.a. (4,854) (7,646) n.a. Net Income (47,290) (24,207) n.a. Adjusted Net Income* (7,290) (21,707) n.a. Earnings per share -EUR1.57 -EUR0.84 n.a. Adjusted EPS* -EUR0.24 -EUR0.75 n.a. All financials unaudited unless specified * Adjusted = excludes EUR40 million special write-down in Antwerp To see full copy of financial results: http://bankrupt.com/misc/Petroplus_3Q.pdf ROYAL PHILIPS: Establishes Joint Venture with Jilin in China ------------------------------------------------------------ Royal Philips Electronics (NYSE: PHG, AEX: PHI) and Jilin Sino-Microelectronics Co. Ltd. announced the establishment of a joint venture to develop, design and manufacture bipolar power products to be marketed and sold by the parent companies. The official signing ceremony of this joint venture takes place while Philips Group Management Committee is currently in China to explore the future growth potential for Philips. Financial details are not disclosed. The new company, Philips Jilin Semiconductor Co. Ltd., which is to be located in Jilin City, Jilin Province in China, will serve the international and domestic markets, focusing on bipolar power products ranging from Epitaxial Diodes, Deflection Transistors, Damper Diodes, Triacs and Thyristors. The new joint venture is expected to begin operations mid-2004, supplying highly competitive, high quality products in markets including consumer electronics, white goods, lighting, power supplies and industrial. Philips Semiconductors, one of the worlds largest suppliers of power products to the electronics industry, has been leading in power product development for more than 20 years, bringing process and manufacturing innovations to the market. Jilin Sino-Microelectronics Co. Ltd. -- one of the largest power transistor manufacturers in China -- is an important supplier to the manufacturers of television sets, telecommunications equipment, computer hardware and automation machinery. "Philips has made substantial investments in China exceeding US$2.5 billion, and we see the Jilin JV as a strategic continuation of this investment. Jilin Sino-Microelectronics Co. Ltd. has demonstrated its ability to quickly build and ramp-up production of a state-of-the art facility, and the plant location allows us to tap the skills and experience of the people in the region," stated Scott McGregor, chief executive officer, Philips Semiconductors. "We know that the technology, manufacturing and customer service expertise of the two companies will make a formidable combination." "Philips has been a leader in the power arena for more than 20 years, bringing a unique blend of innovative processes, manufacturing capabilities and advanced product development to the industry," said Xia Zengwen, Chairman, Jilin Sino-Microelectronics Co. Ltd. "JSMC is one of the largest power semiconductor suppliers in China with strong development potential in this area. The win-win collaboration between Philips and Jilin Sino-Microelectronics Co. Ltd. combines the expertise of both companies to provide high-quality and competitive bipolar power products to address the needs of the electronic product manufacturers around the world." About JSMC Jilin Sino-Microelectronics Co., Ltd., was established in 1999 and listed in Shanghai Exchange in March 2001. It is one of the most important power semiconductor suppliers in China with strong strength in design, development, production, packaging/testing, sales and after-sale service. Its customers are known manufacturers of color TV set, lighting, computer and communications equipment in China. Jilin Sino-Microelectronics Co. Ltd. has the wafer manufacturing capacity of one million slices per year and the assembly/test capacity of 600 million units per year. Jilin Sino-Microelectronics Co. Ltd.'s products have reached IEC standards and passed ISO9001 Quality System Certification as well as ISO140001 Environment Management Certification. About Royal Philips Electronics Royal Philips Electronics of the Netherlands is one of the world's biggest electronics companies and Europe's largest, with sales of EUR31.8 billion in 2002. It is a global leader in color television sets, lighting, electric shavers, medical diagnostic imaging and patient monitoring, and one-chip TV products. Its 166,500 employees in more than 60 countries are active in the areas of lighting, consumer electronics, domestic appliances, semiconductors, and medical systems. Philips is quoted on the NYSE (symbol: PHG), London, Frankfurt, Amsterdam and other stock exchanges. News from Philips is located at http://www.philips.com/newscenter =========== N O R W A Y =========== STOLT-NIELSEN SA: Vows to Fight Dow Chemical's Price-fixing Suit ---------------------------------------------------------------- Commenting on a lawsuit filed recently by Dow Chemical Co. against four chemical carriers including Stolt-Nielsen S.A. (Nasdaq: SNSA; Oslo Stock Exchange: SNI), Stolt-Nielsen S.A. said that the company believes the Dow Chemical claims are without merit and that it will vigorously defend itself against those claims. ***** The case relates to alleged price-fixing, for which Dow and its subsidiary Union Carbide Corporation is seeking triple damages for all of Dow's purchases of shipping services affected by the alleged conspiracy and to recover legal costs. Union Carbide, which was bought by Dow in 2001, is demanding actual damages and legal costs. The lawsuits, filed Nov. 7 in U.S. District Court in New Haven, Conn., stem from a federal investigation into alleged violations of antitrust regulations in the parcel tanker shipping industry, which carries bulk chemicals, edible oils, acids and other specialty liquids over the ocean. The company asserts that the relationships between its chemical shipping unit -- Stolt-Nielsen Transportation Group B.V. -- and its customers are governed by contracts that contain arbitration clauses. Stolt-Nielsen S.A. said it will move for the courts to compel arbitration as agreed to by customers in their contracts with the company. The other three carriers named in the Dow Chemical suit are Odfjell ASA, Jo Tankers B.V. and Tokyo Marine Co., a unit of Mitsui O.S.K. Line Group. Stolt-Nielsen S.A. said in June that in light of announcement of a significant loss by its publicly traded subsidiary, Stolt Offshore S.A., Stolt-Nielsen S.A. anticipates a loss in 2003. Stolt Offshore S.A. earlier said that following a review of information, which became available in recent project reporting and a subsequent major project review by CEO Tom Ehret, it has identified substantially poorer than anticipated performance and cost overruns on three major EPIC contracts and several smaller projects. In addition, it is anticipated that activity levels will be slightly lower than previously anticipated. In light of this revised forecast, Stolt Offshore S.A. is working closely with its main banks in seeking to amend its two primary bank credit facilities to reflect Stolt Offshore S.A.'s current financial position, including a waiver of certain financial covenant tests until November 30, 2003. Without a waiver of certain financial covenants, Stolt Offshore S.A. would be out of compliance with its bank credit agreements, which, in turn, could result in Stolt-Nielsen S.A. being out of compliance with its financing arrangements. In order to help Stolt Offshore S.A. get such waivers from its banks, Stolt-Nielsen S.A. has offered to provide a $50 million capital infusion in the form of a subordinated loan to Stolt Offshore S.A. and extend the existing $50 million liquidity line it currently provides to November 30, 2004. About Stolt-Nielsen S.A. Stolt-Nielsen S.A. is one of the world's leading providers of transportation services for bulk liquid chemicals, edible oils, acids, and other specialty liquids. The Company, through its parcel tanker, tank container, terminal, rail and barge services, provides integrated transportation for its customers. The Company also owns 63.5% of Stolt Offshore S.A. (NASDAQNM: SOSA; Oslo Stock Exchange: STO), which is a leading offshore contractor to the oil and gas industry. Stolt Offshore specializes in providing technologically sophisticated offshore and subsea engineering, flowline and pipeline lay, construction, inspection, and maintenance services. Stolt Sea Farm, wholly owned by the Company, produces and markets high quality Atlantic salmon, salmon trout, turbot, halibut, sturgeon, caviar, bluefin tuna, and tilapia. CONTACTS: STOLT-NIELSEN Reid Gearhart USA Phone: 1 212 922 0900 E-mail: rgearhart@dgi-nyc.com Valerie Lyon U.K. Phone: 44 20 7611 8904 E-mail: vlyon@stolt.com =========== P O L A N D =========== NETIA SA: Minority Shareholders Challenge Merger Resolution ----------------------------------------------------------- Netia S.A. (WSE: NET), Poland's largest alternative provider of fixed-line telecommunications services, announced Tuesday that Millennium Communications S.A. and Genesis Sp. z o.o., two shareholders holding jointly 318 Netia's shares which constitute 0.0000009% of Netia's share capital, filed claims to the Regional Court in Warsaw requesting the invalidation of a resolution on Netia's merger with certain of its wholly owned subsidiaries adopted by the Extraordinary General Meeting of Shareholders held on October 30, 2003 and separate claims to the District Court for the Capital City of Warsaw for the suspension of the proceedings on registration of Netia's merger with certain of its subsidiaries in the relevant registry. Netia believes that the resolution of the Extraordinary General Meeting of Shareholders dated October 30, 2003 was adopted in compliance with law and that Netia's merger with certain of its wholly owned subsidiaries does not violate any of the Netia's shareholders' rights. Due to those reasons the claims are obviously unsubstantiated. Netia intends to petition the court for the dismissal of the claims and request a payment of a tenfold amount of Netia's court costs by the Shareholders, based on art. 423 of the Polish Commercial Companies Code. CONTACT: NETIA SA Investor Relations Anna Kuchnio Phone: +48-22-330-2061 =========== S W E D E N =========== SKANDIA INSURANCE: To Bare Internal Audit Results December 1 ------------------------------------------------------------ Following the Annual General Meeting, Skandia's Board decided on May 6, 2003 to commission Attorney Otto Rydbeck and Authorized Public Accountant Goran Tidstrom to investigate certain areas of Skandia's operations. The assignment was to include transactions between Skandia and Skandia Liv, the principles of the embedded value method and the processes related to compensation and incentive programs. Skandia's Board thereafter assigned an additional task to the investigative panel. The investigation was to examine whether legal or other action should be taken in regard to the costs for renovations of residential apartments. The special investigative panel's report has now been released to Skandia. The report will be taken up for consideration by Skandia's Board, which will also take a position on any conclusions or measures with respect to the report. Skandia's Board previously announced the report would be made public. This will take place at a special press symposium, with both of the investigators' present, on Monday, December 1, at 13:00, at Skandia, Sveavagen 44. The full report in Swedish, as well as summary in Swedish and English, will be available online at http://www.skandia.comand http://www.setterwalls.combeginning December 1, at 11:00 o'clock. Any decisions or conclusions reached by Skandia's Board with respect to the report will be made public after Skandia's Board has taken the matter into consideration on December 2. Neither the investigators nor the Skandia Board will be able to make any comments with respect to the report before these dates. CONTACT: SKANDIA INSURANCE Corporate Communications S-103 50 Stockholm, Sweden Phone: +46-8-788 10 00 Fax: +46-8-788 23 80 Home Page: http://www.skandia.com ===================== S W I T Z E R L A N D ===================== ABB LTD.: Sharpens Focus of Automation Business ----------------------------------------------- ABB, the leading power and automation technology group, said it will merge its six automation business areas into three globally focused businesses effective January 1, 2004. The move continues an evolution that began in late 2002 when the group merged two automation-related divisions and combined eleven business areas into six. Martinus Brandal, an 18-year veteran, will head the new Process Automation business -- blending ABB's control products; petroleum, chemicals and life sciences; plus paper, minerals, marine and turbocharging units. Frank Duggan, currently head of the petroleum and chemicals automation business, will manage global sales and business development, plus indirect channel development. Teemu Tunkelo, current head of the control products business, will serve as technology leader and chief architect for process automation. Tom Sjokvist, with more than 30 years in ABB, will lead the new Automation Products business, merging the current low voltage products and instruments, drives, motors, and power electronics units. Anders Jonsson, current manager of the drives, motors and power electronics area, will drive operational excellence through cost focus, supply chain and sourcing, and strategic cost migration. Bo Elisson, a 29-year veteran, will continue to head the ABB robotics, automotive and manufacturing business, which is renamed Manufacturing Automation, to sharpen the cost focus and track record of innovation from an organization that boasts an installed base of more than 100,000 robots. "To appreciate the logic of these new businesses, consider the needs of a major automation technologies user," said Dinesh Paliwal, ABB group executive and head of the Automation Technologies division. "Just one year ago, our customers had to deal with eleven different ABB organizations to finalize a new strategic relationship. These customers rewarded our first steps toward simplicity with four consecutive quarters where we achieved double-digit business improvement. Now, we are entrusting the industry's broadest range of automation technologies to just three empowered and exceptional global teams." ABB's automation business spans the full range of products and solutions for motion, power, measurement, control and optimization in both process and discrete applications. The Automation Technologies division employs about 56,000 and posted 2002 revenues of US$8.5 billion. ABB (http://www.abb.com)is a leader in power and automation technologies that enable utility and industry customers to improve performance while lowering environmental impact. The ABB Group of companies operates in around 100 countries and employs about 120,000 people. CONTACT: ABB LTD. Automation Technologies Division Brad A. Hoffman Phone: +1-440-585-3809 E-mail: brad.hoffman@us.abb.com SWISS LIFE: Chairman Confirms Sale of Banca Del Gottardo -------------------------------------------------------- Swiss Life Chairman Bruno Gehrig admitted the group, currently realigning strategy to focus solely on core life insurance underwriting, is in talks to sell its private banking unit, Banca del Gottardo. Dow Jones Newswires, citing Swiss daily Handelszeitung, quoted Mr. Gehrig saying: "We are in talks with different parties and trying to sell this bank to a buyer." Declining to name the potential buyers, he said the sale should reap more than CHF800 million as suggested by some market participants. The chief told the newspaper Banca del Gottardo, which will post a profit for 2003, was worth over CHF1.5 billion. Mr. Gehrig denied, however, that the insurer is pressed to sell its non-core insurance unit La Suisse. He said: "We aren't under pressure to sell, La Suisse doesn't lose money." The Swiss Life Group is one of Europe's leading providers of life insurance and long-term savings and protection. It offers individuals and companies comprehensive advice and a broad range of products via agents, brokers and banks in its domestic market, Switzerland, where it is market leader, and selected European markets. It previously announced a strategic realignment to focus on core business and core markets (Switzerland, France, Germany, Netherlands and Belgium/Luxembourg) as it seeks to turn itself around after heavy losses. Recently, Swiss Life announced that its agreement to sell its U.K. group insurance business to U.S. disability insurer UnumProvident Corp had been abandoned after it was referred to the competition watchdog. The collapse of the sale has seriously disrupted Swiss Life's plans to pull out of the U.K. and focus on three core markets. SWISS LIFE: U.K. Regulator Abandons Review of Unum Transaction -------------------------------------------------------------- The Competition Commission has cancelled the reference concerning the proposed acquisition by Unum Limited of the employee benefits business of Swiss Life (U.K.) plc. The reference was made to the Commission on October 31, 2003 by the Office of Fair Trading under section 33 of the Enterprise Act 2002. The terms of reference required the Commission to examine: (a) Whether arrangements were in progress or in contemplation which, if carried into effect, would result in the creation of a relevant merger situation in that enterprises carried on by or under the control of Unum Ltd will cease to be distinct from enterprises carried on by or under the control of Swiss Life (U.K.) plc; and (b) If so, whether the creation of that situation may be expected to result in a substantial lessening of competition in relation to the supply of group risk insurance products in the United Kingdom. The Commission has received assurances from Unum Limited and from Swiss Life plc that the proposed arrangements concerning Swiss Life's group risk business have been abandoned and that, in particular, the agreements under which the acquisitions were to be made have been terminated. The Chairman of the Commission, Sir Derek Morris, is satisfied that Unum has, within the terms of section 37(1) of the Enterprise Act 2002, abandoned the proposal to make arrangements of the kind mentioned in the reference. He has consequently cancelled the reference in accordance with his powers under Schedule 7 to the Competition Act 1998. This cancellation is published in accordance with requirements laid down by sections 107(2)(a) and 107(4) of the Enterprise Act 2002. ***** The reference was made by the Office of Fair Trading (see OFT news release P/137/03). It has been cancelled in accordance with the provisions of section 37(1) of the Enterprise Act 2002. The Enterprise Act came into force on June 20, 2003, replacing the Fair Trading Act 1973. Under paragraph 15(8) of Schedule 7 to the Competition Act 1998, the Chairman of the Commission, Sir Derek Morris, may exercise the powers conferred by section 37(1) of the Enterprise Act 2002 to cancel a reference while an inquiry group is being constituted or before it has held its first meeting if the Commission is satisfied that the parties have abandoned arrangements for an acquisition of the kind mentioned in the reference. Previously, under section 75(5) of the Fair Trading Act 1973, the Commission was required to seek the consent of the Secretary of State before laying the reference aside. Further information can be obtained from the Commission's web site at http://www.competition-commission.org.uk CONTACT: COMPETITION COMMISSION Francis Royle, Press Officer Phone: 020 7271 0242 =========================== U N I T E D K I N G D O M =========================== BOMBARDIER INC.: British Workers on Chopping Block -------------------------------------------------- Closures and thousands of redundancies are expected at Bombardier's rail equipment plants in Britain after the company's chief executive, Paul Tellier, took control of the transport division from Pierre Lortie. Mr. Lortie, who was appointed three years ago, is "stepping down... in order to pursue other interests," the company announced recently. But there have been speculations he might have been asked to leave at the unit that Mr. Tellier has labeled as not profitable enough. Canadian group Bombardier reviewed its European rail operations after losing CA$615 million (GBP276 million) last year. The move is expected to result to the closure of surplus plants in Britain and Germany. The Derby plant in Britain and its 2,000 employees are said likely to suffer the cuts because of a gap in the order book between 2004 and 2008. The decision of Mr. Tellier to take control of the transport division came as 4,000 workers, which almost made up the entire staff of Bombardier's Shorts aerospace in Belfast, staged a strike over a long-running dispute over pay and conditions. The demonstration almost crippled the plant's production. CHARTER PLC: Shareholders Okay Disposal of U.S. Defense Business ---------------------------------------------------------------- The Board of Charter plc announces that, at an Extraordinary General Meeting of the Company, shareholders gave approval for the disposal of the U.S. Defense Businesses to two wholly owned indirect subsidiaries of Meggitt PLC for a cash consideration of approximately US$45.0 million (GBP26.8 million). The net cash proceeds will be used to reduce the group's indebtedness. Completion of the Disposal remains subject to there being no fundamental change in the U.S. Defense Businesses and to the receipt of the necessary U.S. Government 'Exon-Florio' clearance. ***** The disposal of the businesses is part of the company's strategy to generate sufficient funds by March 10, 2004 to meet a scheduled loan note repayment of US$72.3 million (GBP43.0 million) and to accommodate certain reductions in its loan facility. EMI GROUP: Ratings Affirmed on Withdrawal of Warner Music Offer --------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its ratings on U.K.-based music producer and distributor EMI Group PLC and related entities, including its 'BBB-/A-3' corporate credit ratings on the group, and removed the ratings from CreditWatch where they had been placed on Sept. 22, 2003. The outlook is negative. The rating actions follow confirmation from EMI that it has withdrawn its offer to Time Warner Inc. (BBB+/Negative/A-2) for the acquisition of Time Warner's recorded music business. "The ratings have been removed from CreditWatch because the withdrawal of EMI's offer takes away uncertainty about how such a transaction might be financed," said Standard & Poor's credit analyst Trevor Pritchard. "Furthermore, consolidation with another music major potentially might have lead to EMI being involved in a lengthy regulatory review." The ratings on EMI reflect the group's position as one of the top-five participants of the globally concentrated but declining recorded music market, its leading position in the relatively stable and high-margin music publishing market, and its broad artist diversification where no single artist accounts for more than 3% of recorded music sales. The ratings are tempered by EMI's concentration on the mature and highly competitive music market and weaker-than-average credit ratios. At Sept. 30, 2003, EMI had gross debt of GBP1.1 billion ($1.8 billion). EMI has limited ability to improve credit ratios absent stabilization in demand for music. The group could find it increasingly difficult to repeat the market share gain of the six months to Sept. 30, 2003. Having already carried out substantial rationalization, EMI might also be challenged to further reduce costs significantly. If the group's credit ratios do not improve or market conditions further deteriorate, the ratings could be lowered. HOLLINGER INC.: Disputes Alleged Influence of Rival Publisher ------------------------------------------------------------- The Telegraph Group does not believe Express Newspapers could influence any possible sale of the newspaper, which is much speculated in the wake of the recent controversy involving its parent, Hollinger International, according to the Financial Times. There have been rumors that Express Newspapers, controlled by publisher Richard Desmond, could fortify a claim to buy the flagship newspaper by exercising pre-emption rights over their jointly owned printing plant, West Ferry Printers. He reportedly wants to take full control of Europe's largest broadsheet printing plant, even if he does not acquire the Telegraph. The plant prints the Daily and Sunday Telegraph. But Hollinger International denied Mr. Desmond is working towards securing favorable terms or emerge as the strongest potential bidder for the newspapers, according to the report. Hollinger International is considering a sale of the company, break-up or piecemeal disposals, as part of a strategic review, prompting rumors it could sell its U.K. flagship newspaper arm. The sale of The Telegraph is speculated despite suggestions of disapproval from Lord Black, who remains chairman of The Telegraph Group. General Trust and private equity groups such as Candover or Apax are also seen as potential bidders. INVENSYS PLC: Six-month Results Now Available for Viewing --------------------------------------------------------- Invensys plc confirms that two copies of the Invensys plc Interim Report for the six months ended September 30, 2003 have been lodged with the U.K. Listing Authority in accordance with paragraphs 9.31 and 9.32 of the Listing Rules: The document will be available to the public for inspection at the U.K. Listing Authority's Document Viewing Facility at: The U.K. Listing Authority 25 The North Collonade Canary Wharf London E14 5HS Name of contact and telephone number for queries: Victoria Scarth, Senior Vice-President, Director - Group Marketing and Communications; Phone: 020 78213538. Name of Company official responsible for making notification: Emma Sullivan, Assistant Secretary. Date of notification: November 25, 2003 ***** Invensys, the troubled automation and controls group, has put two-thirds of its business up for sale to plug a GBP900 million- pension deficit and take care of GBP1.6 billion in debts due to be refinanced in 2005. KINGSTON COMMUNICATIONS: First-half Pre-tax Results Improve ----------------------------------------------------------- Kingston Communications (HULL) PLC (KCOM.L) announces its interim results for the half-year ended September 30, 2003. Summary Six months Six months Change ended ended over Sept. 30, 2003 Sept. 30, 2002 prior year (GBP million) (GBP million) (%) Business results* Turnover 158.0 152.5 3.6 EBITDA before restructuring costs 24.0 18.7 28.2 Operating profit/(loss) before restructuring costs (3.0) (8.6) 65.1 Statutory results Turnover 162.9 169.3 (3.8) EBITDA before restructuring costs 27.0 21.5 25.6 Operating profit/(loss) (4.9) (5.7) 13.2 *Business results from continuing operations exclude Centrica revenues and restructuring costs. Statutory results are restated figures, including Centrica. The restatement relates to the financial results for Publishing Services, which have been restated following the publication of a new revenue recognition accounting standard announced on November 13, 2003. Previously, revenue and profit in the Publishing Services business for the Hull Colour Pages directory were accounted for on a long-term contract basis. This meant that revenue and profits were taken in proportion to the amount of work done to date on the next directory. Under the new accounting policy, revenue and profit will only be taken at the point when the directory is published. The impact of the change in accounting policy is set out in note six. Highlights (a) Trading in line with expectations (b) Underlying revenue growth excluding Centrica continues in the first half (i) East Yorkshire voice and data revenues increased 5.4% (ii) Business Services network based revenues rose 5.8%, whilst non-network sales reduced 6.0% year on year, giving overall growth, excluding Centrica, of 2.9% (c) EBITDA and margins show further marked improvement (i) Group EBITDA from continuing operations before restructuring costs and before restatement* increased 28.2% to GBP24.0 million (2002: GBP18.7 million) with EBITDA margins on continuing activities excluding Centrica improving to 15.2% (2002: 12.3%) (ii) East Yorkshire EBITDA rose 14.4% to GBP18.0 million (iv) Business Services improves 13.3% to GBP6.0 million (d) Operating losses, before restatement* and restructuring costs improved 65% to GBP3.0 million (2002: GBP8.6 million) with East Yorkshire and Publishing Services delivering bulk of improvement (e) Group cash flow positive over last 12 months (f) Malcolm Fallen appointed as new Chief Executive Officer with effect from November 25 (g) Annualized cost reductions of over GBP10 million initiated to date (h) Recent customer wins in Business Services to benefit second half growth (i) Results of Publishing Services restated to reflect change in accounting standards announced November 13, 2003 Chairman, Michael Abrahams said, "I am pleased to announce the appointment of Malcolm Fallen as our new Chief Executive Officer. Malcolm is now bringing together his management team to drive improved business performance in a number of areas. The new team has already addressed costs across the Group, but in particular in the unprofitable areas of Business Services." Commenting on the results, he added, "Over the last twelve months, the Group has been cash positive and, on an underlying basis, we currently anticipate it being cash positive on an annual basis hereafter. "Notwithstanding the background of a fragmented industry with continuing over capacity, the Directors believe that the Group is capable of delivering profitable growth for the future. The cost reductions identified so far will underpin the Group's short term expectations." To see financial statements: http://bankrupt.com/misc/Kingston_Interim.htm MG ROVER: Suspends Production for a Week ---------------------------------------- Birmingham-based MG Rover is temporarily suspending production to balance supply and demand level for its manufactured cars, according to Ananova. The production of the 25, 45, and 75 models stopped Tuesday. Workers from the Longbridge factory were sent home with guaranteed payments. They are to resume work on the same day next week. The decision came after owners of the car manufacturer met with union to discuss the company's finances. Among the topics take up were the directors' pay, the company's GBP70 million plus pensions deficit, and reports that a trust fund had been created for company directors. The union leaders had no official comment on the recent work stoppage. MYTRAVEL GROUP: Completes Sale of Lexington to Canada Inc. ---------------------------------------------------------- MyTravel Group plc announces the completion of the previously announced sale of Lexington Services, LLC for US$7.75 million (GBP4.6 million) in cash. ***** Lexington is one of the world's leading providers of electronic connectivity services between hotels and Global Distribution Systems and Alternative Distribution Systems. Lexington made a loss in the year to September 30, 2002 of US$0.3 million (GBP0.2 million). It had net assets excluding bank and inter-group balances at September 30, 2002 of GBP2.2 million. At completion, all inter-group balances will have been settled. CONTACT: BRUNSWICK Phone: 0207 404 5959 Fiona Antcliffe Roderick Cameron ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Europe is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Larri-Nil Veloso, Ma. Cristina Canson, and Laedevee Gonzales, Editors. Copyright 2003. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$575 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *