Bang & Olufsen a/s expects a turnover in the region of DKK 3,100 to DKK 3,300
million for the 2008/09 financial year as a whole. Result before tax is
expected to be between DKK -260 to DKK -380 million.
The estimate is partly based on Bang & Olufsen's expectations to the interim
report for the first half of the 2008/09 financial year which will be announced
on Thursday 15 January 2009. The Group expects a turnover for the first half
year of approximately DKK 1,533 million with a result before tax of
approximately DKK -207 million.
When Bang & Olufsen announced its future strategy on 21 October, the Group did
not set out an estimate for the financial year as a whole stating that:
"Traditionally, the Group's turnover in November and December is significantly
above average. This, combined with the recent turbulence in financial markets,
has increased uncertainties. As a result the Group will not give an estimate
until the publication of the interim report for the half year on 15 January
2009."
The expectations, which have now been determined by the Group, are based on the
following main factors:
So far, Group turnover for the peak season, November and December, has not met
expectations.
Global market developments remain challenging and are characterised by
uncertainty.
Moreover, exchange rate developments have negatively affected the result.
In view of the new situation, Bang & Olufsen intends to initiate a number of
restructuring measures with immediate effect, the costs of which have not been
incorporated into the published estimate. These measures are additional to the
cost adjustments of DKK 160 million, which have already been implemented in
continuation of the Group's presentation of its future strategy on Tuesday 21
October and which will takes their full, positive effect during the second half
of the current financial year.
The restructuring initiatives, combined with a stronger product launch
programme, aim to support the Group's objective to break even during the
2009/10 financial year.
Jørgen Worning Karl Kristian Hvidt Nielsen
Chairman President/CEO
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For further information, please contact:
President/CEO Karl Kristian Hvidt Nielsen, tel.: +45 9684 5004
