Business News
Hönle reports positive result for the third quarter
Friday 28. August 2009 - Hönle Groups economic situation stabilised in the third quarter of the financial year. After some time, sales revenue increased again from T 9,829 in the previous quarter to the T 11,031. The operating result (EBIT) was also positive in the third quarter and stood at T 115.
In all, the Hönle Groups sales revenue grew by 2.2 % to T 33,611 in the first nine months of the year as a result of the corporate acquisitions made last year. By contrast, the operating result dropped from T 4,808 in the previous year to T -2,065 in the current financial year. The pretax result decreased from T 5,117 to T -2,120 in the same period and the consolidated result fell from T 3,949 to T -1,655. Earnings per share dropped from 0.69 to -0.30.
The Hönle Groups liquid assets amounted to T 3,896 as at 30 June 2009. The Groups liquid assets, securities and treasury stock inventory (market value as at 30 June 2009) totalled T 5,619. The equity capital ratio was 69.9 %.
Outlook:
The economic situation appears to be gradually stabilising. There are many indicators that both the German economy and the global economy will stabilise on a low level. The business climate has improved considerably in the manufacturing industry, in particular.
The downtrend also appears to have ended in the printing industry. First signs of recovery are noted in certain segments such as the digital printing segment.
The economic situation also stabilised perceptibly at the Hönle Group. Sales revenues in the third quarter were again above the previous quarters level. It is particularly satisfactory that a slightly positive operating result was achieved despite the still historically low sales level. This success is due to the prompt counter-measures taken at the onset of the economic crisis. As a result of these measures, the Hönle Group will already become profitable in the coming financial year if sales revenue of ca. 42 million are achieved.
The integration of Eltosch GmbH systems – which up to now have been manufactured externally – into Dr. Hönle AG is making good progress and will probably be completed by the end of the financial year. Both the Hönle and Eltosch systems can be produced more efficiently and at lower cost when produced internally.
The planned move of Eltosch GmbH to new, smaller company premises will also contribute significantly to reducing expenses.
Hönle established a new production site in Steinbach, near Frankfurt, for the international activities of the adhesives segment. Several old sites were closed down and, in addition to sales, purchasing and development activities were centralised at the new head office. The two adhesives specialists, Panacol and Wellomer, were pooled within the course of the restructuring process. The new structure optimises business processes and contributes to increasing the earnings power of the adhesives segment. Moreover, additional staff is to be recruited for the sales division and, in particular, the very dynamic Asian market is to be opened up further. By bundling its adhesives competency, Hönle has laid a solid basis for future growth of the adhesives segment.
The Management Board expects sales revenue and the operating result in the fourth quarter to be at almost the same level as in the previous quarter, excluding the effects that primarily relate to the Hönle Groups restructuring process.