"Don't buy trucks" was BT Industries' advice at CeMAT in Hannover last month, and BT's first quarter results show customers have taken heed.

The manufacturer's goal is to encourage customers to rent rather than buy.

The 2002 first quarter orders were virtually unchanged from the 2001 first quarter, but sales declined 8 percent, from SEK3.2 billion (USD324.6 million) to SEK2.9 billion (USD297.8 million), and net income fell 23 percent, from SEK226 million (USD22.9 million) to SEK174 million (USD17.6 million).

Forklift division sales, which were 64 percent of BT's total first quarter net sales, fell 14 percent to SEK1.9 billion (USD194.1 million), from SEK2.2 billion (USD224.8 million) in March 2001.

Warehouse trucks, commanding almost three quarters of forklift sales, fell 18 percent, from SEK1.7 billion (USD173.8 million) to SEK1.4 billion (USD143.1 million), but the service division's results improved three percent. Income from long-term rentals and leasing rose from SEK38 million (USD3.9 million) to SEK62 million (USD6.3 million).

BT chief executive Carl-Erik Ridderstrale said the US market appeared to have stopped declining. The West European market was characterised by a "clearly hesitant attitude". In other markets, development had been optimistic, but sales volumes were largely unchanged.

"For BT, the downturn is most obvious and tangible in warehouse trucks. However, this is where we have the greatest potential for the future," he said. "We have modern plants at several sites around the world. We have built capacity to be quickly able to use an upswing in demand. In other words, we are well equipped for the future."

The European market was down, selling 19 percent less warehouse trucks compared to the first quarter of 2001, but BT held its 18 percent market share. In the USA orders received dropped from SEK1.223 billion (USD124.9 million) in 2001 to SEK1.191 billion (USD121.7 million), and net sales declined from SEK1.434 billion (USD146.3 million) to SEK1.099 billion (USD112.1 million).

"The sustained growth that has characterised the industry for a long time has been temporarily interrupted. However, there are already signs of a certain recovery in the USA. I am convinced the downturn is only temporary," Mr Ridderstrale said.

"At the same time, it is extremely important for BT to meet these fluctuations. We must adapt our costs and organisation (to) maintain good profitability through quickly (exploiting) an upswing in the market."