Business News
schlott gruppe confirms provisional results for first half of 2007/8
Wednesday 07. May 2008 - Break-even EBT before one-time charges in first half Cost reduction programme being phased in as scheduled Annual forecast reaffirmed
schlott gruppe developed in line with its targets over the course of the second quarter and first half of 2007/8 and is confirming its provisional results published on April 23. The full report on the first half and second quarter of the 2007/8 financial year can be accessed from the company website ‘www.schlottgruppe.de / Investor Relations / Financial Reports.
Value-added sales at Group level amounted to 122.1 million in the first half of 2007/8, compared with 130.0 million for the same period a year ago, while sales revenue totalled 239.1 million for the period after 244.9 million in the first half of the previous year. schlott gruppe is currently implementing its cost reduction programme as originally scheduled. At 6.3 million, part of the non-recurring charge forecast for the financial year as a whole was recognised as expense in the reporting period. Excluding this one-time item, the Group generated EBT of 0.5 million in the first half of 2007/8 after 7.9 million posted for the same period a year ago. Accounting for the non-recurring expense, the loss before taxes stood at 5.8 million in the first half.
The post-tax loss amounted to 4.5 million after the first six months, compared to a profit of 10.1 million reported for the same period a year ago. The loss per share was 0.74, as opposed to positive earnings per share of 1.62 a year ago. Additionally, earnings per share for the first half of the previous year had included 0.19 from discontinued operations.
Value-added sales in the second quarter of 2007/8 amounted to 56.9 million at Group level, compared with 60.7 million for the same period a year ago. Revenue contracted to 111.7 million, down from 122.5 million. Before non-recurring expenses, EBT for the second quarter stood at minus 2.7 million after minus 0.6 million last year. Including non-recurring expenses, EBT was minus 9.0 million. The post-tax loss amounted to 6.6 million in the second quarter, compared with a profit of 0.1 million posted a year ago. The loss per share was 1.07, as opposed to positive earnings per share of 0.02 a year ago. Additionally, earnings per share for the second quarter of the previous year had included 0.11 from discontinued operations.
The print unit generated value-added sales of 120.3 million in the first half of 2007/8, after 127.8 million posted for the same period a year ago. After the first six months EBT before non-recurring expenses stood at 2.6 million; including non-recurring expenses, it amounted to minus 3.7 million, compared with positive EBT of 9.8 million posted for the first half of 2006/7. In the second quarter of 2007/8 value-added sales totalled 56.0 million after 59.7 million. EBT before non-recurring expenses stood at minus 1.5 million; including non-recurring expenses, it was minus 7.8 million. EBT for the second quarter of the previous financial year had been 0.6 million.
Costs incurred by corporate services, the unit responsible solely for providing internal services within the Group, remained in line with budgets for both the second quarter and the first half.
As already outlined in the announcement of the Group’s provisional results, schlott gruppe continued to pursue the targeted phase-in of its cost reduction programme over the course of the reporting period. This will provide the necessary basis for a reduction in the Group’s annual expenses by an amount in the double-digit million range. Supported by these measures, schlott gruppe will be able to partially offset the effects of previous price reductions and anticipated pricing pressure as early as the current financial year. Excluding the non-recurring expenses of approx. 15 million required in connection with the cost reduction programme, the Group’s forecast of break-even EBT for the 2007/8 financial year remains unchanged.
Notes to financial data:
Alongside “revenue/sales”, schlott gruppe uses so-called “value-added sales” (VAS) as a financial indicator – both in its external communications and as part of its internal controlling mechanisms. Revenue is subject to fluctuations that are attributable to the volume of paper supplied by customers as raw material for certain projects. In contrast to paper purchased directly by the company, paper supplied by customers is not included in the accounts of schlott gruppe. In the 2006/7 financial year, the so-called paper provision ratio stood at 72.5 per cent. As a financial indicator, “value-added sales” eliminates fluctuations relating to paper supplied by customers, thus reflecting the actual sales performance.