STEICO Aktiengesellschaft / Half Year Results/Half Year Results 18.09.2008 Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Figures for H1 2008 and outlook Revenues stable at last year's level Impact of financial crisis on real economy depresses earnings Feldkirchen (Munich), September 18, 2008 STEICO AG (ISIN DE000A0LR936) was able to increase its revenues by 7.5% in the first six months of 2008 (Jan. 1 June 30, 2008) to EUR 51.5 million (previous year: EUR 48.0 million). This is due to the successful integration of the production facility in Casteljaloux (France) and currency translation effects from the increase in the value of the Polish Zloty. Consolidated EBITDA totaled EUR 4.9 million (previous year: EUR 8.7 million). This change was due to weaker demand and continued price pressure as a result of the general economic uncertainties in the first half of the year. In addition, the increase in the value of the Polish Zloty also had a corresponding impact on costs. Positive effects from the restructuring and optimization activities already put in place are expected from the first half of 2009. The strong capital expenditure in the past few years is reflected in EBIT in the form of increased amortization and depreciation. EBIT thus totaled EUR 0.8 million in the first half of 2008 (previous year: EUR 5.5 million). Despite the continued insecurity on the market, the STEICO Group was able to reinforce its position on the market in the second quarter. However, the second quarter did not lead to any relaxation in selling prices, and the pressure on earnings thus continued. As a result of the increasing impact the financial crisis is having on the real economy and the cloudy economic outlook in the whole of Europe, STEICO AG believes that a sustained recovery of the markets will not take place before 2010. As a result, the company will not be able to fully reach its own targets for 2008. For this reason, the forecast issued on May 7, 2008 has been withdrawn. The company is not publishing a new forecast for the current year as a result of the current insecurities on the market. However, the STEICO Group believes that revenue growth will continue to be stable and in line with the market. The STEICO Group's successful strategic development will be overshadowed by a difficult market in the current fiscal year. The underlying conditions for energy-efficient, ecological construction products continue to be exceptionally positive. As a result, the Managing Board believes that the current period of weakness is a temporary dip in growth, and it intends to further drive its expansion strategy. In addition, the management is continuing to focus on sustainably improving profitability. In addition to the staff changes in the Polish subsidiary's Managing Board that have already been put in place, a broadscale restructuring program aims to boost the STEICO Group's earnings. On June 30, 2006, the STEICO Group had cash and cash equivalents totaling EUR 20.8 million and an excellent equity ratio of 65.6%. Company profile: The STEICO Group develops, produces and sells ecological construction products made of renewable materials. STEICO leads the European market for wood-fiber insulation materials with a market share of more than 40%. STEICO is positioned as a system provider for ecological wood construction. The company's product range includes wood-fiber insulation materials, hemp-based products and I-joists as construction elements. The production of natural fiber boards (NFB) rounds off the company's vertical integration and extensive product range - which is unique in the industry. The Munich-based company's products are successfully used in home building for floors, walls, ceilings and roofs. STEICO's products enable the construction of future-proof, healthy buildings which offer a particularly high quality of living. STEICO's products offer reliable protection from cold, heat and noise and also improve the climate within the house. The products' ecological and functional quality is guaranteed by the independent natureplus® certification. In addition, STEICO's wood-fiber insulation materials have been honored with the FSC® certificate (Forest Stewardship Council) for exemplary environmental protection. The STEICO Group has competitive advantages such as production and sales expertise, three large, fully integrated production facilities close to key markets, international sales and a well-established brand. The business model offers major opportunities. This is due to factors including the potential that STEICO's products offer to save energy and to improve the quality of living. The strong growth in environmental and health consciousness as well as state subsidization programs for environmentally friendly construction are regarded as being long-term drivers for the market for ecological construction products. The STEICO Group supplies around 400 customers throughout Europe via the wood and construction materials trade, wood construction, construction materials retailers, the prefab home and laminated flooring industries, DIY stores and logistics partners for international DIY stores. Its strategic planning focuses on developing new products, growing market shares and increasing internationalization. The funds from the IPO in June 2007 have enabled the company to further bolster the Group's solid foundations and also to secure its long-term growth. Contact: Andreas Schulze STEICO Aktiengesellschaft Hans-Riedl-Strasse 21 85622 Feldkirchen Fon: +49-(0)89-99 15 51-48 Fax: +49-(0)89-99 15 51-97 E-Mail: schulze@steico.com www.steico.com DGAP 18.09.2008 --------------------------------------------------------------------------- Language: English Issuer: STEICO Aktiengesellschaft Hans-Riedl-Str. 21 85622 Feldkirchen Deutschland Phone: +49 - (0)89 - 99 15 51 - 0 Fax: +49 - (0)89 - 99 15 51 - 99 E-mail: info@steico.com Internet: http://www.steico.com ISIN: DE000A0LR936 WKN: A0LR93 Listed: Freiverkehr in Berlin, Düsseldorf, München; Entry Standard in Frankfurt End of News DGAP News-Service ---------------------------------------------------------------------------
DGAP-News: STEICO Aktiengesellschaft:Figures for H1 2008 and outlook
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