Business News
schlott gruppe confirms provisional results for third quarter and first nine months of 2007/08
Wednesday 06. August 2008 - Business develops in line with expectations Execution of cost-reduction programme on track at all facilities; savings expected as early as current financial year Annual forecast reaffirmed
schlott gruppe progressed in line with expectations in the third quarter and first nine months of the 2007/8 financial year and confirms its provisional results published on July 23. The full report on the third quarter and first nine months of the 2007/8 financial year can be accessed from the company website of schlott gruppe (www.schlottgruppe.de / Investor Relations / Financial Reports).
Value-added sales at Group level amounted to 175.8 million in the first nine months of 2007/8, compared with 186.4 million for the same period a year ago, while sales revenue totalled 348.3 million for the period after 350.1 million in the first nine months of the previous year. schlott gruppe is currently implementing its cost-reduction programme as originally scheduled. At 9.8 million, the largest part of the approximate total of 15 million in non-recurring charges budgeted for the annual period was recognised as expense in the first nine months. Excluding these one-time charges, the Group generated a loss before taxes of 3.0 million after nine months, compared to positive EBT of 4.3 million in the same period a year ago. Including one-time charges, the loss before taxes stood at 12.8 million.
The post-tax loss amounted to 8.9 million after the first nine months, compared to a profit of 7,9 million from continued operations reported for the same period a year ago. The loss per share was 1.47, compared with earnings of 1.28 per share last year. Additionally, earnings per share from discontinued operations for the same period a year ago were 0.17.
Value-added sales in the third quarter of 2007/8 amounted to 53.7 million at Group level, compared with 56.4 million for the same period a year ago. Revenue increased to 109.2 million, up from 105.2 million. Before non-recurring expenses, EBT for the third quarter stood at minus 3.5 million, after minus 3.6 million last year. Including non-recurring expenses, EBT was minus 7.0 million. The post-tax loss amounted to 4.4 million in the third quarter, compared with a loss from continued operations of 2,1 million posted a year ago. The loss per share was 0.73, compared with a loss of 0.34 per share last year. Additionally, earnings per share from discontinued operations for the third quarter of the previous year were 0.05.
The print unit generated value-added sales of 173.8 million in the first nine months of 2007/8, after 183.2 million posted for the same period a year ago. After the first nine months EBT before non-recurring expenses stood at minus 1.1 million; including non-recurring expenses, it amounted to minus 10.4 million, compared with positive EBT of 7.1 million posted for the first nine months of 2006/7. In the third quarter of 2007/8 value-added sales totalled 53.5 million after 55.3 million. EBT before non-recurring expenses stood at minus 3.8 million; including non-recurring expenses, it was minus 6.8 million. EBT for the third quarter of the previous financial year had been minus 2.7 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 third quarter and the first nine months.
schlott gruppe continued to pursue its cost-reduction programme over the course of the reporting period. During the third quarter, the Group concluded negotiations concerning the reconciliation of interests and a social compensation plan at its site in Nuremberg, thus achieving a major landmark. Having already finalised agreements for the company’s sites in Freudenstadt and Landau, schlott gruppe is now in a position to meet the targets it had set itself for the reduction of staff costs at its largest operating facility too. The headcount at schlott gruppe’s Nuremberg site is to be scaled down by around 100.
The positive effects of the Group-wide cost-reduction programme will offset as early as the current financial year a certain proportion of the price reductions already conceded – resulting from a continued difficult market – as well as those yet anticipated by the company. 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. The fourth quarter (1.7. – 30.9.) is generally considered one of the more buoyant periods of the financial year. The current volume of orders suggests that schlott gruppe will again be operating at high capacity in the final three months of the financial year, which will be complemented by on-target earnings performance.