DGAP-News: A.S. Création Tapeten AG / Key word(s): Half Year
Results/Quarter Results
A.S. Création reports decline in revenues and earnings
11.08.2014 / 08:15
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A.S. Création Tapeten AG, Gummersbach
(ISIN DE000A1TNNN5)
A.S. Création reports decline in revenues and earnings
A.S. Création Tapeten AG, Europe's leading wallpaper manufacturer, today
published the interim report for the period ended June 30, 2014. A summary
is provided below:
Weak sales revenues in Q2 2014
While A.S. Création had been able to maintain sales revenues at the prior
year level in the first three months of 2014, as the reduction in revenues
in non-EU Eastern European countries was offset by strong revenue growth in
the EU, this was no longer possible in the second quarter of 2014. One of
the main reasons was the very poor state of the French (wallpaper) market,
which is of great importance for A.S. Création. This had not been expected
by the company. The difficult situation in Russia and Ukraine continues to
have an adverse impact on A.S. Création's revenues, as the decline in
consumer spending in combination with the depreciation of the local
currencies against the euro leads to lower demand for A.S. Création's
German-made wallpapers. On the upside, the strongly growing sales of
Russian-made wallpapers are increasingly offsetting the drop in export
sales. While Group sales revenues in non-EU Eastern European countries were
down by 20.6% on the prior year level in the first quarter of 2014, this
gap had narrowed to only 4.9% in the second quarter. At EUR 99.5 million,
total Group sales revenues in the first six months of 2014 were down 5.0%
on the previous year's EUR 104.8 million. The Managing Board is not
satisfied with this performance.
Positive signals in spite of lower earnings
The reduction in sales revenues had an adverse impact on A.S. Création's
bottom line in the first half of 2014. Earnings before taxes declined by
31.6% from EUR 7.2 million in the previous year to EUR 4.9 million in the
reporting period. This reduction in earnings is not satisfactory. Compared
to the first quarter of 2014, however, during which earnings before taxes
dropped by 51.7%, there have been some initial positive signs. For
instance, the gross profit margin again exceeded the prior year level in
the second quarter of 2014 and the rationalisation and cost-cutting
measures initiated by the company are reflected in declining operating
expenses. Moreover, the measures taken to strengthen the distribution of
Russian-made products are showing effect and have led to improved
utilisation of the Russian production capacities. Accordingly, the start-up
losses of the company declined notably in the second quarter. The Managing
Board therefore believes that the Russian production company is on the
right track.
The improvements achieved in the second quarter of 2014 were insufficient
to offset the sharp drop in earnings of the first quarter, however.
Accordingly, A.S. Création reported a reduction in total first-half
earnings. The Managing Board will therefore continue to focus on improving
the cost structures in the coming months.
Earnings forecast confirmed
In view of the bleaker economic outlook for the EU and the great
uncertainty arising from the intensifying crisis in Ukraine, the Managing
Board currently assumes that the company will be unable to realise its
revenue plans for the fiscal year 2014. Instead, sales revenues are
expected to decline to between EUR 180 million and EUR 190 million from
today's point of view. By contrast, earnings for the second half of 2014
should improve notably compared to the previous year, as the second half of
2013 was adversely affected by extraordinary factors. The Managing Board
therefore continues to assume that A.S. Création's net profit for the year
2014 will be much higher than the previous year's net profit, provided that
no extraordinary factors similar to those of the previous year occur.
The Group's key figures for the first six months of 2014 are summarised
below:
<pre>
01.01.- 01.01.- Change
30.06. 30.06.
2014 2013
Sales EUR '000 99,501 104,756 -5.0 %
Earnings before interest and EUR '000 6,516 9,498 -31.4 %
taxes (EBIT)
Earnings before taxes EUR '000 4,894 7,152 -31.6 %
Net profit EUR '000 2,658 4,183 -36.5 %
Earnings per share EUR/share 0.96 1.52 -36.8 %
Cash flow EUR '000 8,507 10,415 -18.3 %
Capital expenditures EUR '000 3,191 5,774 -44.7 %
Depreciation EUR '000 4,728 4,630 2.1 %
Number of employees (average) 825 833 -1.0 %
</pre>
Gummersbach, August 11, 2014
A.S. Création Tapeten AG
The Managing Board
Inquiries:
Maik Krämer,
Director of Finance and Controlling,
phone +49-(0)22 61/542-387,
fax +49-(0)22 61/542-304,
e-mail m.kraemer@as-creation.de
The full 6-month report is available at:
www.as-creation.de
or from:
A.S. Création Tapeten AG,
Frau Börngen,
Südstr. 47,
D - 51645 Gummersbach,
phone: +49-(0)22 61/542-350,
e-mail: investor@as-creation.de
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Language: English
Company: A.S. Création Tapeten AG
SüdstraÃe 47
51645 Gummersbach
Germany
Phone: +49 22 61 54 2-0
Fax: +49 22 61 54 2-3 04
E-mail: investor@as-creation.de
Internet: http://www.as-creation.de
ISIN: DE000A1TNNN5
WKN: A1TNNN
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, München,
Stuttgart
End of News DGAP News-Service
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281528 11.08.2014
DGAP-News: A.S. Création reports decline in revenues and earnings
| Source: EQS Group AG