This is a translation into English of the original stock exchange release in
Danish. In case of discrepancies between the two texts, the Danish text shall
prevail.
The Group posted DKK 381 million in first-quarter revenue in 2007. This was on
a par with the year-earlier level.
The Group posted DKK 5 million in first-quarter operating profit in 2007, down
from DKK 12 million last year and reflecting the adverse effect of approx. DKK
10 million in non-recurring items caused by structural measures initiated by
the Group.
Hartmann still expects consolidated revenue in 2007 in the range of DKK 1,500
million, up approx. 2% from the revenue achieved in 2006.
The Group initiated a number of structural measures in Q1 2007 to strengthen
its long-term earnings capacity. The measures are in keeping with the Group's
wish to enhance efficiency and consolidate its business, as announced already
in the Annual Report 2006. Non-recurring items resulting from these measures
aggregated approx. DKK 10 million in Q1. Against this back-ground the Group has
revised the operating profit forecast for the full year by DKK -10 million to
DKK 30-40 million.
As announced in stock exchange release no. 8/2007, in April a conditional
contract was signed for the sale of the Group's operations in South America.
The sale is expected to have a negative earnings effect of approx. DKK 50
million on discontinued operations. Accordingly, the Group's equity is reduced
by a similar amount, approx. DKK 50 million.
It has previously been announced that the divestment of the operations in South
America in-volves the reclassification of foreign exchange gains/losses from
prior years appearing by the translation of the equity in South America at the
opening exchange rate and the exchange rate at balance sheet date.
The procedure is an accounting technicality only and has no effect on equity or
liquidity. At 31 March 2007 the amount involved totalled approx. DKK 187
million.
Accordingly, the Group expects a negative impact of approx. DKK 237 million on
the amount in net profit/(loss) after tax in 2007, including the above
reclassification, as a result of costs related to the contract signed in
relation to South America.
The net profit for the year is now forecast at between DKK -227 million and DKK
-237 million.
The forecast does not include any costs that may arise out of further strategic
and structural measures in the remaining part of 2007.
For further information please contact:
Peter Arndrup Poulsen
CEO
Brødrene Hartmann A/S
Tel.: +45 45 87 50 30
