Corporate | 27 May 2009 09:00
INDUS Holding AG / Quarter Results
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Bergisch Gladbach, May 27, 2009 - The global economic downturn left its
marks on the performance of INDUS Holding AG in the first three months of
2009. 'Our portfolio companies performed relatively well in spite of the
recessionary environment,' CEO Helmut Ruwisch commented on the quarterly
result with a view to the poor overall performance of the manufacturing
sector. 'We benefited from the diversification in our portfolio. INDUS is
feeling the effects of the economic crisis, but only on a minor scale.'
Consolidated sales were down by 17.3% on the first quarter of 2008 to EUR
178.4 million (previous year: EUR 215.6 million). By comparison, the sales
volume in the manufacturing sector declined by a much higher rate in Q1
2009; according to the Federal Statistical Office, it was 21.9% below the
previous year's level (adjusted for the number of working days). INDUS's
automotive segment was hit particularly hard by the drop in demand, whereas
the other three core segments - construction, mechanical engineering and
consumer goods - showed a relatively robust performance. International
sales accounted for 42.2% of total sales, up from 39.6% in the previous
year.
On the cost side, the cost of materials declined at a disproportionately
high rate of 23.6% to EUR 80.8 million (previous year: EUR 105.8 million)
due to the drop in commodity and energy prices. As a result, the cost of
materials as a percentage of sales decreased from 49.1% to 45.3%. Personnel
expenses declined by 4.4% to EUR 55.9 million (previous year: EUR 58.5
million). The positive effect of the measures initiated by the company in
autumn 2008 to adjust its capacity to the changed economic activity - some
of which have already been completed - will be felt even more strongly with
a certain delay in the following months. Besides the timely adjustment of
capacities and costs, greater flexibility is a key objective for the
future.
In spite of the swift adjustment measures initiated by the company, the
effects of the above-mentioned decline in sales could not be offset. As a
result, earnings before interest and taxes (EBIT) declined to EUR 8.9
million (previous year: EUR 22.8 million). Net income for the period after
minority interests amounted to EUR 0.1 million (previous year: EUR 8.4
million).
'We achieved a respectable result in what was an extremely challenging
first quarter,' Ruwisch emphasised. 'We will continue to cut costs
aggressively and take comprehensive measures to strengthen our Group for
the future.' These measures include the ongoing flexibilisation of
personnel capacities and a more restrictive investment policy. In addition,
the company is confident that effective restructuring programmes will
clearly cut costs at some of its portfolio companies. Stricter working
capital management and the planned retention of EUR 7.1 million with the
help of a reduced dividend will also help to guarantee continued high
liquidity.
The economic situation in Germany and the main output markets continues to
be marked by high uncertainty. Against this background, the Management
Board of INDUS Holding AG expects sales and earnings to remain clearly
below the previous year's levels. At present, it is impossible to issue a
reliable forecast for the further course of the year. 'We believe, however,
that a bottom may be found in the second quarter, with a modest turnaround
possible towards mid-year,' said a moderately optimistic Helmut Ruwisch.
Liquid funds in excess of EUR 80 million represent a comfortable financial
basis and a solid foundation for INDUS Holding AG; in addition, they will
open up opportunities for expanding the investment portfolio against the
background of declining valuation standards.
27.05.2009 Financial News transmitted by DGAP
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Language: English
Issuer: INDUS Holding AG
Kölner Straße 32
51429 Bergisch Gladbach
Deutschland
Phone: +49 (0)2204 40 00-0
Fax: +49 (0)2204 40 00-20
E-mail: indus@indus.de
Internet: www.indus.de
ISIN: DE0006200108
WKN: 620010
Listed: Regulierter Markt in Frankfurt (Prime Standard), Düsseldorf;
Freiverkehr in Berlin, Hamburg, München, Stuttgart
End of News DGAP News-Service
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