Brødrene Hartmann A/S today announced the interim report 2/2006.
- Second-quarter consolidated revenues came to DKK 351 million against DKK 349 million in the same period last year. The Group's main activities realised a revenue growth of 7%.
- The Group posted an operating result for 2Q 2006 of DKK -4 million compared to DKK 6 million in 2Q 2005. The operating result for 1H 2006 totalled DKK 7 million against DKK 21 million in 1H 2005, the decline being attributable primarily to a weak 1Q in 2006 in Industrial Packaging and a severance payment provision in 2Q 2006.
- In 2Q 2006, the European core business developed satisfactorily maintaining market shares and earnings in spite of unfavourable market conditions. Production in North America has as planned once more improved, and the challenge is now directed towards increasing sales.
- The Group posted DKK 23 million in consolidated net profit for 2Q 2006. This reflects a positive effect of DKK 27 million from discontinued activities including an amount in compensation from the insurers relating to the Group's production plant in Argentina.
- As part of its continued efforts to focus and optimise activities, the Group has decided to launch two further measures:
- After having assessed the possible structural measures in South America, the Group has initiated divestment of its activities in the region.
- It has been decided to sell the Group's head office in Lyngby outside Copenhagen in order to reduce the amount in invested capital and optimise the balance.
- The net result forecast for the full year is increased by DKK 35 million from the previous level of DKK 25-35 million to DKK 60-70 million, and this includes an expected gain of DKK 45 million from the sale of the Group's property in Lyngby. Furthermore, the sale will result in reduction of the net interest-bearing debt of approx. DKK 110 million.
For further information please contact:
Asger Domino
President & CEO
Tel.: +45 45 87 50 30
Michael Hedegaard Lyng
CFO
Tel.: +45 45 87 50 30
