CeWe Color Holding AG / Quarter Results/Change in Forecast
07.11.2008
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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CeWe Color Q3 report: High growth with
CEWE PHOTO BOOK and Internet business
CEWE PHOTO BOOK increases with 68 %
Internet business increases by 33 %
Q3/2008 earnings before tax (EBT) at 15 million euros
Economic decline and problematic business in France dampen expected
earnings for 2008
Sound financing secures growth prospects
Oldenburg, 7 November 2008. CeWe Color Holding AG (Prime Standard, ISIN DE
0005403901) achieved a turnover of 117.7 million euros for the third
quarter of 2008; this was matched by 123.5 million euros for the same
quarter of the previous year (-4.7 %). This decline was mainly due to a
predicted shift of seasonal business into the fourth quarter, which had
been anticipated given the strong increase in the proportion of CEWE PHOTO
BOOKS and personalized photo gift articles (incl. photo calendars and photo
greeting cards) in turnover. Besides, the incurred economic decline as a
result of the financial crisis also contributed to the lower turnover. In
line with the development in turnover, earnings before tax and
restructuring were also reduced, from 22.2 million euros in the same
quarter of the previous year to 15 million euros in the third quarter of
2008. Of the 14 million euros in restructuring costs which the company had
provided for in 2008, only 10.8 million euros have been required so far. In
the third quarter no restructuring costs were incurred. As a result
earnings before tax for the third quarter also amounted to 15 million euros
(2007 Q3: 21.9 million euros).
'Given the slightly troubled general environment, we are quite satisfied
with our third-quarter results. The predicted seasonal shift, with the
focus of sales in the fourth quarter of 2008, is a reflection of the
success of our new high-growth products,' says Dr. Rolf Hollander, Chairman
of the Board of Management of CeWe Color Holding AG.
Internet business and CEWE PHOTO BOOK continue to grow strongly
Internet business, most of which is operated jointly with retail stores,
grew particularly well once again in Q3, with a rise of 33 %. In business
in general, digital photos once again increased, by 15.4 % to 558.9 million
photos produced; the volume of photos from films on the other hand dropped
as anticipated by 36 %, to 269.4 million photos. This means a general 8.5 %
drop in the number of prints, to 828.3 million.
Rated best in a number of consumer magazines, the CEWE PHOTO BOOK continued
to grow in the third quarter of 2008: in the period up to 30 September 2008
CeWe Color had already produced 1.6 million CEWE PHOTO BOOKS more than in
the full year of 2007. Given the fact that the fourth quarter is a
high-volume period, the annual forecast of 2.5 million CEWE PHOTO BOOKS is
likely to be exceeded.
Economic decline and problematic business in France dampen sales and
earnings expectations
A drop in the volume of sales may be expected given the incurred economic
decline in the face of the financial crisis, although photos products are
not affected as strongly by a declining tendency as producer goods or
high-value consumer goods. The development of business in France was
negative. On the basis of these developments, the Board of Management
presumes that turnover will be in the ballpark of 415 to 420 million euros
for the full year of 2008 (previous year 413.5 million euros, original
projection 426 million euros). Earnings before tax and restructuring are
now expected to be in the range of 20 to 25 million euros (previous year
25.0 million euros, original projection 31 million euros).
Dr. Rolf Hollander: 'This means that the fourth quarter of 2008, with
earnings before tax and restructuring at between 6.2 million euros and 11.2
million euros, would be far more profitable than the fourth quarter of
2007, when CeWe Color generated 5.4 million euros.
The quarterly results contain poorer results from France, where a
break-even result had been achieved in 2007. This decline in earnings in
France is prompting the Board of Management to think about how the
problematic situation in France can be improved in the long term. These
considerations may result in further considerable drops in earnings.
In all other countries a further drop of earnings is not expected. The
transformation process has been successfully completed there.
Sound financing secures growth trend
CeWe Color reports an extremely sound stock of available equity of 45 %. In
combination with gross cash flow, which continues to be strong, this
foundation constitutes a sound basis for more growth, particularly in view
of the current financial crisis.
About CeWe Color: Photo service company CeWe Color, with 15
highly-technical production operations and a staff of around 2,800
employees in 24 European countries, is both market and technological
leader. The company supplied around 2.8 billion photos, more than 1.5
million CEWE PHOTO BOOKS and photo gift articles to more than 50,000 retail
partners in 2007. In 2007 turnover amounted to EUR 413.5 million. CeWe
Color is 'first mover' in the launch of new digital technologies, for
example ordering digital photos in the Internet or with the help of order
terminals (DigiFoto Makers) in retail stores. Sales of personalised CEWE
PHOTO BOOKS are developing extremely well. In 1961, CeWe Color was founded
by Senator h.c. Heinz Neumüller. The company went public under the
leadership of Hubert Rothärmel. CeWe Color Holding AG is listed on the
Prime Standard.
Should you have any queries, please contact:
CeWe Color AG & Co. OHG, Hella Hahm (-400) or Axel Weber (-552)
Tel.: 0441 / 404 - 234, Fax: 0441 / 404 - 421,
Email: IR@cewecolor.de, Internet:www.cewecolor.de or www.cewe-fotobuch.de
DGAP 07.11.2008
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Language: English
Issuer: CeWe Color Holding AG
Meerweg 30-32
26133 Oldenburg
Deutschland
Phone: +49 (0)441 40 4-1
Fax: +49 (0)441 40 4-42 1
E-mail: IR@cewecolor.de
Internet: www.cewecolor.de
ISIN: DE0005403901
WKN: 540390
Listed: Regulierter Markt in Berlin, Frankfurt (Prime Standard);
Freiverkehr in Hannover, München, Hamburg, Düsseldorf,
Stuttgart
End of News DGAP News-Service
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DGAP-News: CeWe Color Q3 report: High growth with CEWE PHOTO BOOK and Internet business
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