PlasmaSelect AG / Quarter Results
05.11.2008
Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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PlasmaSelect AG takes decisive steps in Q3 2008 for conversion into an
investment holding company
Full scope of restructuring measures burdens third-quarter result with
minus of 9.5 million; excluding extraordinary expenditure, nine-month
EBIT is level with prior year
Munich, 31 October 2008 PlasmaSelect AG (WKN 547 180), innovative
Munich-based investment holding company on the healthcare and water
treatment market, announces its results for the third quarter of 2008 and
nine-month results for fiscal 2007/2008 as at 31 August 2008. The third
quarter saw a preliminary peak in the process announced in previous
quarters of transforming PlasmaSelect AG from an operational corporate
holding in the health care sector into an investment company with two core
divisions of Health Care (traditional health and pharmaceutical market) and
Water Treatment. The one-off and extraordinary expenditures directly
associated with restructuring measures in the company's Health Care
division plus startup costs for the expansion of the company's new Water
Treatment division generated negative EBIT of -9.5 million in the third
quarter and negative EBIT of -11.4 million for the first nine months of
2008. These expenditures break down as provisions for the closure of the
Marburg plant ( 2 million), further expenditures relating to the plant
closure decision ( 1.4 million), non-capitalizable consulting and
restructuring costs associated with the reorientation and
internationalization of the Health Care division ( 1.4 million) and
one-off personnel payments ( 0.4 million) from the second quarter. The
Water Treatment division was a new addition in the third quarter; its EBIT
is fully consolidated but economically regards PlasmaSelect AG just in 30 %
and in 70 % other shareholders. This division showed EBIT of -2.1 million
in its startup phase, primarily accounted for by goodwill depreciation on
Aquaworx technologies ( 1.6 million). Excluding one-off and extraordinary
effects, nine-month EBIT totalled -4.1 million and was thus roughly equal
to the adjusted level of -4.0 million for the prior year (excluding EBIT
contribution from the generics business sold off in the meantime).
Sales revenues for the third quarter of 2008 rose year-on-year by 53,000
to 8,648,000 (3rd quarter of 2007: 8,595,000). Despite the turmoil in
the global economy, corporate sales for the first nine months of 2008 fell
year-on-year by only 4.7% to 26.3 m (compared with 27.6 m for the same
period 2006/2007).
'Results for the third quarter and the nine-month period of fiscal
2007/2008 are in line with our anticipations', declares Bernhard Giessel,
CEO of PlasmaSelect AG. 'PlasmaSelect AG's Health Care division is
currently undergoing extensive restructuring with the goal of repositioning
existing health care business. The one-off special effects associated with
this process in the third quarter have proved a heavy burden for EBIT.
However, the preconditions required for restructuring the company as an
investment holding company with core divisions of Health Care and Water
Treatment are now in place, and PlasmaSelect AG is in an ideal position to
expand successfully in long-term growth markets.'
Highlights in the third quarter of 2008 / nine-month period of fiscal
2007/2008 and prospects for the future
Water Treatment
PlasmaSelect AG acquired 30% equity in Aquaworx AG on 2 June 2008 and now
holds 50.1% of voting rights. Aquaworx AG is an innovative technology
company in the field of development and production of technologies for
water and liquid disinfection treatment. The water treatment market is a
relatively new high-growth market which is receiving impetus from society's
increasing ecological awareness, from global shortages of drinking water
and from the availability of new technologies.
Products already developed by Aquaworx provide timely and appropriate
solutions for the sub-markets of drinking water, process water (industry)
and waste water which are ecological, low-maintenance and innovative.
Production takes place in Switzerland, and products are marketed by the
company's German marketing subsidiary. Aquaworx is currently establishing
an international sales network of selected partners; markets in Benelux,
Brazil, Finland, India, Russia, Singapore, the UK and USA, the Balearics,
Canada, Kazakhstan and France are already covered by marketing intermediary
agreements. Rapid establishment and expansion of the export business is
based on a strategic partnership with Swiss company TELSONIC AG, a leading
producer of ultrasonic technology and supplier to Aquaworx. Aquaworx will
be able to take advantage of this partner's network of international
branches and sales channels.
Health Care
As part of restructuring measures in the company's health care division,
after the sale of the generics division last year the management of
PlasmaSelect AG embarked on the task of lowering production costs for the
existing product portfolio to significantly improve results for fiscal
2008/2009. Numerous measures were adopted in the field of production which
will lead to reduced production costs and enhanced competitiveness. After
the closure of the Marburg plant and the shift of product manufacture to a
contracted producer, from February 2009 the sales organizations will
receive the same products as before at comparable prices, while
PlasmaSelect AG will no longer be burdened by the production risk,
production problems and ongoing negative results of the Marburg plant.
PlasmaSelect is also planning structural changes to the Italian production
and sales organization aimed at improving its position on the Italian
market and generating progress in the development of financial results.
The business model of the affiliated company DeltaSelect will be advanced
and internationalized, incorporating complementary product lines. In doing
this, PlasmaSelect's goal is to establish its own roster of approvals, but
also to acquire approvals or even entire pharmaceutical companies which
complement the existing product portfolio and thus strengthen
PlasmaSelect's market position as a provider of hospital solutions. The
company aims to increase DeltaSelect's enterprise value as a trading
company in the hospital solutions sector.
The production-based actions described and the sales activities already
under way are intended to return the health care division into
profitability.
The Nine-Month Report can be downloaded at www.plasmaselect.de under the
heading 'Investor Relations'.
PlasmaSelect AG
Founded in 1998 as a specialist in the sale of adsorber, infusion and
irrigation solutions and complementary medical products, today PlasmaSelect
AG is an innovative investment holding company on the healthcare and new
technologies market. The holding comprises five operating investment
holding companies with a total of almost 300 staff worldwide. In fiscal
2007 (as of 30 November 2007) the company reported consolidated sales of
EUR 56.3 million.
PlasmaSelect AG is listed on the Regulated Market (Prime Standard) of the
Frankfurt Stock Exchange (securities ID 547 180). For more information
please see www.plasmaselect.de
DGAP 05.11.2008
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Language: English
Issuer: PlasmaSelect AG
Pettenkoferstraße 22
80336 München
Deutschland
Phone: +49 (0)89 810 29-0
Fax: +49 (0)89 810 29-111
E-mail: info@plasmaselect.de
Internet: www.plasmaselect.de
ISIN: DE0005471809
WKN: 547180
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Düsseldorf, Hamburg, München, Berlin, Stuttgart
End of News DGAP News-Service
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DGAP-News: PlasmaSelect AG takes decisive steps in Q3 2008 for conversion into an investment holding company
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