BT Industries is confident the world materials handling market cannot recede further, saying that, while there remains global uncertainty, market activity has increased since the first quarter of 2002.

BT has posted first-half sales of SEK6.09 billion (USD651.5 million), down eight percent from the SEK6.6 billion (USD706.7 million) posted in the same period of 2001. Net income fell 19 percent from SEK442 million (USD47.3 million) in 2001 to SEK360 million (USD38.5 million).

"The second quarter gives us some hope that the market is ready to rebound," BT chief executive Per Zaunders said. "The first quarter was tough, but we are now seeing positive signs of a possible turnaround, including higher orders received. During the first half, BT was also able to strengthen market share."

A weakening world economy, slow demand in 2001 and high shipments related to orders from 2000 saw a decline in backlog, Mr Zaunders said.

"The restructuring of our industry has been obvious during the last decade. The need for changes is increasing and this is more evident in periods with a weak economy, as we have seen," he said.

"Keeping good profitability therefore requires adjusting costs. To use possible synergies, within BT and with our owner Toyota, is one of the major opportunities to increase cost efficiency."