Business News
schlott gruppe presents preliminary figures for third quarter and first nine months of 2008/09
Wednesday 22. July 2009 - Macroeconomic development and market environment remain unfavourable; Operational development in line with current expectations; Third quarter impacted by non-cash revaluation losses from hedging
schlott gruppe today announces its preliminary figures for the third quarter (ending 30 June 2009), and for the first nine months of the 2008/09 financial year.
The market for printed products continues to be characterised by significant pricing pressure and low levels of demand. Although, as would be expected, the third quarter was affected by persistently unfavourable market conditions, business performance was in line with the companys forecasts.
schlott gruppe recorded revenue of 83.0 million in the quarter under review, down on the figure of 102.2 million in the comparable quarter. Value-added sales (VAS) stood at 44.7 million, last years value being 50.5 million. All comparative data from the previous year has been adjusted to take account of the deconsolidation of subsidiary company sachsendruck on 1 November 2008.
The year-on-year decline in VAS (-11.5 per cent) was not quite as pronounced as the fall sustained in the second quarter. However, the increase registered over the course of the current financial year – typically recorded in the third quarter – was also very low: in the current financial year, VAS for the third quarter failed to rise above the level of the very disappointing second quarter.
The total tonnage processed in the third quarter fell by 10.4 per cent to 122.8 thousand tons, compared to 137.0 thousand tons last year. The drop in VAS – slightly greater in percentage terms – clearly illustrates the continuing pressure on prices. Despite this, schlott gruppe succeeded in maintaining its operating result for the reporting quarter at the level of the second quarter thanks to the positive impact of cost-reduction measures.
With the net finance result influenced by currency fluctuations, operating performance for the quarter under review is most apparent from EBIT levels. EBIT for the third quarter amounted to -2.5 million, compared to -2.6 million in the second quarter of the financial year. In quarter three of the previous year, the figure had stood at -1.6 million.
During the third quarter, the net finance result was affected to the tune of 2.1 million by currency losses not affecting liquidity; these were linked to the valuation of hedge transactions. The unusually strong positive currency effects of the first six months have thus normalised. As a result, EBT for the third quarter of 2008/09 (before restructuring expenses) amounted to -6.4 million, against -3.5 million in the previous year. If the expenses for the groups current restructuring programme (1.4 million) are included, EBT stands at -7.8 million, compared to -7.0 million last year.
In terms of the nine-month period, schlott gruppe achieved revenue of 278.6 million (following 324.9 million) and VAS of 146.0 million (compared to 165.7 million in the prior year). EBIT stood at -1.2 million, after 1.4 million last year. EBT before restructuring expenses was -7.1 million (against -3.3 million); including these expenses, EBT was -9.2 million against -13.1 million.
In quarter three 2008/09, the print business unit recorded VAS of 44.2 million (compared to 50.3 million the year before), EBIT of -2.6 million (following -1.5 million), EBT before restructuring of -5.3 million (against -3.7 million) and EBT including restructuring expenses of -5.4 million (compared to -6.7 million).
In the nine-month period, the same unit achieved VAS of 143.6 million (compared to 163.7 million), EBIT of -2.9 million (following 2.1 million), EBT before restructuring of -4.3 million (against -1.5 million) and EBT including restructuring expenses of -4.9 million (following -10.8 million).
The corporate services unit, whose activities are restricted to providing intragroup services, performed as anticipated.
Early in June 2009, in the face of an extremely challenging market environment, schlott gruppe announced a wide-ranging package of measures aimed at safeguarding the future. The package, which was described in detail in the press release dated 7 July 2009, provides – amongst other measures – for the comprehensive reduction of existing capacities in response to changing market conditions. The aim is to raise and sustain the companys profitability over the financial years ahead, and to improve the pre-tax result by around 25 million each year by fiscal year 2011/12.
A framework paper drawn up with the ver.di trade union and the bargaining committee of the group works council concerning personnel measures at sites in Germany was signed and approved in early July; these and other measures are currently being implemented.
schlott gruppe will confirm the final figures and update the position as regards implementation of the measures outlined above in its quarterly/nine-monthly report on 5 August 2009.