The financial statements for the first half of the year reflect the
ongoing turnaround activities:
The divestment of the loss-making operations in South America had an
adverse effect of DKK -245 million on the result (EAT), of which DKK
192 million relate to the reclassification of foreign exchange
translation differences and will affect neither equity nor liquidity.
Impairments of assets in North America and Asia have had an adverse
effect of DKK -212 million, of which DKK -163 million relate to the
impairment of assets in North America and DKK -49 million to the
impairment of assets in Asia.
The Group posted an operating result (EBIT) for Q2 2007 of DKK -176
million and for H1 2007 DKK -171 million.
The Group posted an operating result (EBIT) for Q2 2007 excl.
impairment of DKK -12 mio. kr. against DKK -4 million in the same
period last year. The accumulated operating result (EBIT) for H1 2007
excl. impairment came to DKK -7 million against DKK 7 million in H1
2006. Adjusted for DKK 17 million in non-recurring items in H1, the
amount in operating result was on par with last year.
The consolidated result (EAT) for Q2 2007 came to DKK -483 million
against DKK 23 million in the same period last year. The amount in
consolidated result for H1 2007 aggregated DKK -486 million against
DKK 25 million in H1 2006.
The outlook for operating result (EBIT) before impairments is
adjusted downward to DKK 0-10 million. The total amount in operating
result (EBIT) including the effect of the impairment is expected in
the range of DKK -155 million to DKK -165 million. The result of the
discontinuing operations in South America results in a lowering of
the result for the Group (EAT) to approx. DKK -490 million.
Equity is reduced from the opening level of DKK 540 million to DKK
262 million at 30 June 2007.
After the balance sheet date, the Group has received a binding
commitment from Brødrene Hartmann's Fond to make a capital injection
of DKK 50 million in subordinated loan.
Execution of the ongoing turnaround plan is expected to result in
positive cash flows from operating and investing activities from 2008
and operating profit (EBIT) in 2009 in the range of DKK 80 to DKK 100
million.
Management believes that its cash reserves are adequate and flexible
enough to meet ongoing and planned financing requirements.
For further information please contact:
Peter Arndrup Poulsen
CEO
Brødrene Hartmann A/S
Tel.: +45 45 87 50 30
or +45 51 51 40 69
