Loewe AG / Key word(s): Half Year Results/Change in Forecast
27.07.2011 07:52
Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Kronach, July 27, 2011 - At EUR 57.2 million, Loewe Group sales in the
second quarter of 2011 were 23% lower than the Q2 2010 figure of EUR 74.0
million. In the first six months of 2011, Group sales declined by 19% to
EUR 118.7 million (H1 2010: EUR 147.4 million). The decreased sales and
production volume caused Loewe to post negative EBIT of EUR -4.9 million in
the second quarter of 2011 after negative EBIT of EUR -4.9 million in the
same period in 2010. The EBIT loss in the first six months of 2011 came to
EUR -7.8 million compared to an EBIT loss of EUR -4.1 million in the first
six months of 2010.
Aggressive competitor pricing and the noticeable buying restraint for
consumer electronics products compared to the previous year intensified in
the second quarter of 2011. The absence of major sporting events in the
second quarter of 2011 contributed to a 25% decline in the value of the
market for LCD TVs in Europe.
Against this backdrop, Loewe's target of achieving moderate growth in sales
and positive EBIT for 2011 is no longer realistic. The Loewe Group will
benefit (as will the entire industry) from the positive market trend for
the normal seasonal business in the third and especially the fourth quarter
of 2011 as well as the launch of new, innovative products. However, the
business development in the first six months of 2011 leads to the
conclusion that sales in 2011 will fall short of the previous year's
figure, thereby making it impossible to achieve positive EBIT from the
present perspective.
In the coming quarters, Loewe will systematically push ahead with the 'Fast
Forward' future strategy program. After having successfully reorganized
product development and further optimizing the internal processes in recent
months, the Company launched all its new products on the market in good
time. Loewe now offers a large number of top-quality 3D sets with optimum
LED backlight.
In the future, the product range will be even more intensely aligned with
the needs and desires of customers in the European premium market. That is
why Loewe is continuing the strategic expansion of its current product
portfolio to include a new audio segment. For the 2011 holiday shopping
season, Loewe speakers and source devices will be complemented by a broad
range of individualizable, innovative standalone audio solutions. Moreover,
Loewe will further reduce the technical complexity of its products. The
premium manufacturer will in the future follow a new, economically sensible
platform strategy, which will also contribute to reducing production costs.
Another focus of 'Fast Forward' is the systematic expansion of the
premium-based marketing of Loewe products within and outside of Germany. In
this area as well, specific agreements with and deliveries of Loewe sets to
the retail chains FNAC in France, John Lewis in the United Kingdom and the
Euronics retail cooperative in Italy represent the first successes. Another
key element of 'Fast Forward' is a communication offensive. A number of
campaigns with ads in large daily newspapers and target group-oriented,
regional radio advertising are currently underway. Measures for improving
Loewe's brand awareness even further in the second half of 2011 will
include TV spots with target group-specific broadcasters.
The market offers good opportunities for Loewe in the medium term. In
addition to the continued replacement demand and the increasing ownership
of more than one LCD TV in Europe, new technologies like 3D television and
HbbTV (the connection of television and the Internet) offer stimuli that
will last beyond the current fiscal year.
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Information and Explaination of the Issuer to this News:
PLEASE NOTE: Loewe will offer a related teleconference with Oliver Seidl,
CEO, and Manfred L. Fitzgerald, Chief Marketing and Sales Officer, on July
27, 2011 at 10:00 a.m. Kronach time. To register for the teleconference,
please contact Investor Relations by calling +49 (0)9261 99-984 or by email
at ir@loewe.de to obtain the number to call. This replaces the
teleconference originally scheduled for August 3, 2011.
Loewe AG
Industriestrasse 11
96317 Kronach, Germany
Investor Relations, Axel Gentzsch
Phone: +49 (0)9261 99-240
Fax: +49 (0)9261 99-994
Email: axel.gentzsch@loewe.de
Public Relations, Dr. Roland Raithel
Phone: +49 (0)9261 99-217
Fax: +49 (0)9261 99-444
Email: roland.raithel@loewe.de
27.07.2011 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
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Language: English
Company: Loewe AG
Industriestrasse 11
96317 Kronach
Germany
Phone: +49 (0)9261 99-984
Fax: +49 (0)9261 99-994
E-mail: ir@loewe.de
Internet: www.loewe.de
ISIN: DE0006494107
WKN: 649410
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, Hamburg, München, Stuttgart
End of Announcement DGAP News-Service
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DGAP-Adhoc: Loewe AG: 1st half 2011
| Source: EQS Group AG