schlott gruppe Aktiengesellschaft / Quarter Results
06.02.2008
Release of a Corporate-announcement, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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schlott gruppe confirms preliminary results for Q1 2007/8
- First-quarter business performance in line with expectations
- Annual guidance forecast reaffirmed
- First signs of structural market changes
Freudenstadt, February 6, 2008. schlott gruppe has today published its
first-quarter report (October to December 2007) for the 2007/8 financial
year, confirming fully the preliminary financial results already
communicated by the company.
The consolidated figures relating to the Group's latest quarterly report
are presented on a comparable basis, i.e. the direct marketing unit, which
was disposed of effective from July 31, 2007, and was thus still part of
the Group in the first quarter of 2006/7, is presented as discontinued
operations with regard to the preceding year, in accordance with IFRS 5,
with data having been adjusted accordingly.
schlott gruppe developed in line with expectations over the course of the
first quarter of the new financial year, thus providing a solid basis from
which to pursue and achieve the Group's annual targets. The year-on-year
decline in value-added sales (VAS) and earnings before taxes (EBT) remained
within the projected parameters, as it was attributable mainly to price
reductions faced by the company over the course of the previous financial
year.
Overall, value-added sales at Group level receded from 69.3 million in the
first quarter of 2006/7 to 65.2 million in Q1 2007/8. However, capacity
utilisation at schlott gruppe remained satisfactory. Revenue increased to
127.5 million, up from 122.4 million. This reflects the lower
paper-provision ratio within the Group as a whole. In other words, the
Group purchased a larger amount of paper and invoiced the appropriate
quantities to its customers, but this had no effect on VAS or EBT.
As anticipated, EBT for the first quarter of 2007/8 receded from 8.5
million in the same period a year ago to 3.2 million in the period under
review, mainly as a result of price reductions implemented over the course
of the financial year just ended, which came into full effect. Post-tax
profit amounted to 2.1 million, after 10 million from continued
operations in the same period a year ago. Earnings per share contracted to
0.33, down from 1.60. The previous year figure includes a positive effect
from the capitalisation of corporate tax claims of 5 million, however.
These figures do not yet include expenses from the cost reduction programme
currently being implemented by the com-pany.
The print business unit generated value-added sales of 64.2 million in the
first quarter of 2007/8, compared with 68.2 million in the same period a
year ago. EBT amounted to 4.1 million, after 9.1 million in the first
quarter of the previous financial year. At 0.3 million, the loss before
taxes incurred by the corporate services unit was significantly lower than
the loss of 1.0 million posted a year ago.
The first quarter saw the launch of schlott gruppe's cost reduction
programme, scheduled for a period of three years. These measures are to be
executed as scheduled, the aim being to rein back annual expenses within
the Group by a double-digit amount in the million-euro range. In
implementing this action plan, schlott gruppe will offset in part as
early as the current financial year the recent price reductions faced by
the company as well as the projected contraction of prices. As announced,
the total expense attributable to the cost reduction programme will amount
to approx. 15 million in the 2007/8 financial year. The company remains
confident that EBT (before the aforementioned non-recurring expenses) for
the full 2007/8 financial year will reach break-even.
The market in which schlott gruppe operates continues to be extremely
challenging. However, the company has been encouraged by the more stable
market trends witnessed in recent months. Demand remains satisfactory and
the price levels to be achieved within the marketplace have been developing
in line with expectations. What is more, the sector as a whole has become
increasingly dynamic: beyond M&A activities within the industry there is
also evidence to suggest that over-capacities will be scaled down. schlott
gruppe, too, is contributing to market streamlining by decommissioning
machinery no longer considered viable and thus reducing capacity levels.
There is good reason for optimism that the industry as a whole will find an
appropriate balance between demand for printed items and the supply of
printing capacity. schlott gruppe will remain a leading player within the
European printing industry and will continue to shape market structures in
years to come. The current cost reduction programme has been designed to
strengthen the company and provide a launch pad for market expansion. The
programme has been communicated in the balance sheet press- and analyst
conference at the end of January 2008 and is discussed in the quarterly
financial report released today, which is available on the companys web
site under www.schlottgruppe.de.
Notes to financial data:
Alongside 'revenue/sales', schlott gruppe uses so-called 'value-added
sales' (VAS) as a financial indicator both in its external communications
and as part of its internal controlling mechanisms. Revenue is subject to
fluctuations that are attributable to the volume of paper supplied by
customers as raw material for certain projects. In contrast to paper
purchased directly by the company, paper supplied by customers is not
included in the accounts of schlott gruppe. In the 2006/7 financial year,
the so-called paper provision ratio stood at 72.5 per cent. As a financial
indicator, 'value-added sales' eliminates fluctuations relating to paper
supplied by customers, thus reflecting the actual sales performance.
schlott gruppe AG
Marco Walz
Investor Relations & PR
Wittlensweilerstr. 3
72250 Freudenstadt
Germany
Tel.: +49 7441 531-230
Fax : +49 7441 531-204
marco.walz@schlottgruppe.de
www.schlottgruppe.de
DGAP 06.02.2008
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Language: English
Issuer: schlott gruppe Aktiengesellschaft
Wittlensweilerstraße 3
72250 Freudenstadt
Deutschland
Phone: +49 (0)7441 531-230
Fax: +49 (0)7441 531-204
E-mail: marco.walz@schlottgruppe.de
Internet: www.schlottgruppe.de
ISIN: DE0005046304
WKN: 504630
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Stuttgart, Düsseldorf
End of News DGAP News-Service
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DGAP-News: schlott gruppe confirms preliminary results for Q1 2007/8
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