Corporate | 5 November 2002 12:31

Ludwig Beck am Rathauseck english

Third-quarterly report 2002 Corporate-news announcement sent by DGAP. The sender is solely responsible for the contents of this announcement. ——————————————————————————– Third-quarterly report 2002: Sustained consumer buying restraint makes for decline in sales, Balanced EBIT in the third quarter, With restrained optimism into the Christmas trade season Munich, 5 November 2002 – The Ludwig Beck Group (WKN 519 990) has seen turnover drop against the background of a continuingly weak situation on the economic and consumer spending fronts. Gross turnover during the first nine months of 2002 came to EUR 63.7 million (as against last year’s figure of EUR 67.2 million), and was thus 5.3 per cent below that of the same period in 2001. The sales trend at LUDWIG BECK is in line with that of the sector as a whole. Sales on the German retail front have slumped to an unprecedented degree and, according to the German “TextilWirtschaft” trade journal, textile retailers have seen sales drop by no less than 8 per cent. The weak situation in terms of consumption affected virtually all product groups at LUDWIG BECK, though pleasing exceptions to the rule were the trendy “Hautnah” department featuring an extensive range of bodycare and decorative cosmetic products, as well as fragrances and the innovative spa zone, which also benefited from an expansion of floor space, and the lingerie department featuring new, high-quality designer brands that was successfully opened in August. Sustained improvement was also achieved by the Beck branch operations, one prominent example being the branch at the PEP Perlacher Shopping Centre which bucked the trend with sales growth of 4.2 per cent. The branch in Augsburg has firmly established itself at its new location, and is likewise showing a positive sales trend. Ludwig Beck Vertriebs GmbH, which commenced its business activities in late February, delivered a contribution of EUR 2.3 million to the Group result. Closed down on 30 September 2002, ludwigbeck-online GmbH achieved a figure of EUR 0.265 million as against EUR 0.250 million over the same period last year. In spite of the continuingly weak state of the economic environment coupled with declining sales throughout the entire German retail sector, LUDWIG BECK achieved a balanced EBIT in the third quarter. At -1.4 million EUR as opposed to last year’s figure of +1.1 million EUR, the cumulated EBIT for the first nine months of 2002 is still negative. The Group’s result was ultimately negatively affected by subsidiary ludwigbeck-online GmbH with a loss of EUR 0.182 million. The EBIT figure also includes the entire one-off costs for redundancies and restructuring totalling EUR 0.8 million. At -1.2 million EUR as opposed to last year’s figure of -0.3 million EUR, the financial result is marked by higher interest rates and similar operating expenditure that arose as result of the consolidation of the real estate commitment (Marienplatz headquarters). In contrast, expenditure categorized under “other operating expenses” fell. In all, the net loss for the year came to -2.7 million EUR as against the previous year’s figure of EUR 0.4 million. This is in line with the sales trend that is typical of the retail trade, where it is in most cases not until the fourth quarter that the results achieved by profitable businesses go into a positive dimension. In view of the continuingly weak state of the economy, LUDWIG BECK initiated cost-cutting measures at an early stage. These have principally involved adjustments in the area of personnel, with the number of employees being cut from last year’s figure of 609 to 503. Weighted by full-time staff, the workforce contracted significantly to 411 from last year’s 461, and this figure will drop further to around the 400 mark by the end of the year. Overall, the measures will lead to a permanent lowering of operational outlay by EUR 1 million as from the beginning of 2003. After 2001, the German textile retail sector is facing a further lean year, and an end to the consumption doldrums is not anticipated before 2003. Ludwig Beck has made use of the difficult year 2002 to realign itself in terms of its operational concept by implementing an extensive package of internal measures, covering streamlining of processes, the outsourcing of specific tasks, more efficient sales area planning, as well as rigorous cost adjustments at all levels. In view of the hitherto positive sales trend in October, there is a feeling of restrained optimism at Ludwig Beck as the Group goes into the Christmas trade season, a period traditionally marked to a great extent by seasonal sentiment. The “Weihnachtshaus” Christmas market has been a firmly established feature at the flagship store in Munich for thirty years, and will be even more attractive this year. Intensified marketing activities will further stimulate sales. The telecommunications firm Quam has terminated its rent agreement against a compensatory payment, with the result that the highly productive areas on the ground floor are now fully available again. Opened on 16 October in Munich’s Olympia Shopping Centre (OEZ), Ludwig Beck Vertriebs GmbH’s new Esprit store has got off to a highly successful start. There are now 6 of these branches, and it is planned to open a further five in the course of the coming year. In spite of the continuingly weak economic trend, Ludwig Beck expects to achieve consolidated sales at last year’s level in the wake of the measures that have and are being implemented. The detailed quarterly report is being published on the Internet at http://www.ludwigbeck.de, and the printed version will become available on 12 November 2002. Contact: Lothar Fiss, Investor Relations Tel. +49(0)89 23691-663, Fax +49(0)89 23691-600 Key figures of LUDWIG BECK as at 30 September 2002 in Mio. EUR 2002 2001 Gross turnover 63,7 67,2 Net turnover 54,9 58,0 EBIT -1,4 1,1 Result from ord. operations -2,6 0,8 Deficit for the period -2,7 0,4 Earnings p. share (DVFA) -0,58 -0,08 Personnel as at 30.09. 503 609 end of message, (c)DGAP 05.11.2002 ——————————————————————————– WKN: 519990; ISIN: DE0005199905; Index: SDax Listed: Amtlicher Markt in Frankfurt (SMAX) und München; Freiverkehr in Berlin, Düsseldorf, Hamburg und Stuttgart 051231 Nov 02