In Q1 2013, Hartmann took important steps towards reducing the complexity of its
production and increasing its sales. Europe showed signs of stabilisation
compared with H2 2012, and the North American business continued to see positive
trends and was primed for additional growth. We retain our guidance for revenue
of DKK 1.5-1.6 billion and a profit margin of 7.5-9.5%.
CEO Michael Rohde Pedersen on Hartmann's performance in Q1 2013:
"During the first three months of the year, we took important steps towards
creating a less complex production in Europe and increasing the scope of our
current business in North America. With the closing of our Finnish manufacturing
facility and the expansion in North America, Hartmann will have an even stronger
position in the international competition going forward."
Michael Rohde Pedersen on Hartmann's outlook:
"We saw signs of stabilisation in Europe compared with the second half of 2012
and retain our guidance of revenue of DKK 1.5-1.6 billion and a profit margin of
7.5-9.5%."
Highlights
* Hartmann generated revenue of DKK 423 million for Q1 2013 (2012: DKK 412
million) and an operating profit* of DKK 44 million (2012: DKK 45 million),
corresponding to a profit margin* of 10.3% (2012: 11.0%).
* Hartmann generated a strong cash inflow from operating activities of DKK 47
million (2012: DKK 50 million). Return on invested capital fell to 12.4%
(2012: 19.1%) due to special items attributable to the closure of Hartmann's
manufacturing facility in Finland.
* The European business showed signs of stabilisation compared with H2 2012
and generated total revenue of DKK 351 million for Q1 2013 (2012: DKK 344
million) and an operating profit of DKK 34 million (2012: DKK 36 million),
corresponding to a profit margin of 9.7% (2012: 10.4%). Performance for the
European business remains unsatisfactory.
* The positive performance in North America was sustained with revenue for Q1
2013 increasing to DKK 72 million (2012: DKK 67 million). Operating profit
remained unchanged at DKK 16 million (2012: DKK 16 million), corresponding
to a profit margin of 21.7% (2012: 23.4%).
* In Q1 2013, Hartmann resolved to streamline its European production network
by closing the group's manufacturing facility in Finland. The decision led
to special items of DKK 33 million for Q1 2013 and is expected to contribute
DKK 10 million to operating profit annually. The full effect is expected to
show as from 2014, while the effect will be limited in 2013.
* On 9 April 2013, Hartmann announced the group's intention of expanding its
existing production capacity in North America. The expansion was initiated
in Q2 2013 with full implementation anticipated in 2014.
* Hartmann retains its guidance of revenue of DKK 1.5-1.6 billion and a profit
margin of 7.5-9.5%.
* References to operating profit refer to operating profit before special items,
and references to profit margin refer to profit margin before special items.
For additional information, please contact:
Michael Rohde Pedersen
CEO
Tel. (+45) 45 97 00 33
[HUG#1701187]
