Business News
Hönle continues to improve revenue and earnings
Wednesday 31. December 2008 - According to preliminary figures, the Hönle Group (SIC 515710) saw a significant increase in both revenues and earnings in financial year 2007/2008 with sales revenues rising by 85.7 % to T 48,744 in comparison with the previous years period.
Earnings before interest and tax (EBIT) improved 29.7 % to T 5,627 while earnings before tax (EBT) grew by 18.9 % to T 5,904. Consolidated net income for the year rose by 44.0 % and amounted to T 4,561.
Hönle acquired three companies in the last financial year. In January 2008 Hönle acquired the Panacol Group. PrintConcept GmbH, a UV specialist for UV dryers in the graphic segment was purchased in the same month followed by the purchase of Eltosch GmbH, an established supplier of drying systems for the printing industry, in May. Cash and cash equivalents, financial assets and own shares declined from T 20,320 to T 11,702 due to the corporate acquisitions in the last financial year. Liabilities to banks amount to 1 million, the investment volume used for the expansion of business activities will probably be under one million euro. The capital ratio comes to 62.9 %.
Outlook:
The Hönle Group succeeded in raising its market share significantly as a result of the corporate acquisitions. At the same time the Company laid the foundations for sustained powerful growth of the corporate group. In the new financial year special emphasis will be placed on the speedy integration of the acquired companies, the strengthening of existing synergies with respect to sales, development and production as well as the realisation of cost savings potential. The production of Eltosch GmbH has been outsourced to external companies to date. In the future, drying equipment of the Eltosch brand will be manufactured at Dr. Hönle AG in addition to Hönle products, and this will increase efficiency in the production of UV and IR systems. At the same time a high quality standard of the plants is ensured for the printing industry. Moreover, it is planned to extend existing customer relationships and gain new customers through direct access in the sheet-fed offset segment.
Panacol GmbH and Wellomer GmbH will move to new corporate premises. The resulting synergy effects will lead to another long-term increase in the Hönle Groups operating result. A further revenue increase is expected to result from the extension of sales in the South-East Asian region, in particular.
The major integration measures will probably be finalised by the end of the financial year.
The economic slowdown and current investment restraints will impact on the business development of the Hönle Group also. The extent and duration of the restrained investor behaviour, in particular in the printing industry, is difficult to predict at present.
Overall, Hönle expects an increase in revenues in comparison with the previous year as a consequence of the initial full consolidation of the acquisitions. Operating results will be below the previous years level.
Hönle is responding to the changing economic conditions by introducing short-time work at Dr. Hönle AG and Eltosch GmbH. Against this background, the Dr. Hönle AG Management Board and Supervisory Board will propose to the Annual General Meting that a dividend of 0.25 per share (PY: 0.40 per share) of the unappropriated retained earnings of Dr. Hönle AG be distributed.