Ad-hoc | 14 August 2003 07:52

Norddeutsche Affinerie AG english

NA responds to decline in earnings by implementing Group-wide cost-cutting progr Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– NA responds to decline in earnings by implementing Group-wide cost-cutting programme In a very difficult economic environment with persistently weak raw material and product markets Norddeutsche Affinerie AG (NA) recorded, as already announced, reduced earnings in the 3rd quarter of fiscal year 2002/03. The pre-tax profit as at 30 June 2003 declined to 1 EUROm. NA AG in Hamburg made a positive contribution to earnings. As already announced on 22 July, the decline in earnings is mainly attributable to the continued losses at NA’s subsidiaries Hüttenwerke Kayser AG (HK) and Prymetall due to the structurally changed copper scrap market as well as the decline in sales of copper semi-finished products caused by the weak economic environment. HK has responded to the very strained situation by applying extensive cost- cutting measures. Personnel adjustments currently being implemented have weighed on results further due to the respective severance payments. At Prymetall and Schwermetall performance enhancement and cost-cutting programmes have also been implemented. NA is countering the significantly deteriorated trend in earnings for the NA Group by implementing a Group-wide performance enhancement and cost-cutting programme. The programme represents an improvement potential of 80 EUROm annually. Potential savings of more than 50 EUROm have already been opened up by concrete steps and can be implemented as quickly as possible. Further measures with a total potential of 30 EUROm are still at the design stage. The programme will affect results as from fiscal year 2003/04. The target is that, even if the economic downturn continues, the NA Group should again generate positive results in fiscal year 2003/04 and resume its dividend policy. The squeeze-out resolved by Hüttenwerke Kayser AG (HK) on 3 April 2003 at its Annual General Meeting was entered in the Commercial Register on 4 August 2003. Consequently, NA AG now holds 100 % of HK’s subscribed capital. It is generally expected that the economy will pick up. This will also result in an increase in copper demand since copper demand follows economic growth. NA will participate in this at once. end of ad-hoc-announcement (c)DGAP 14.08.2003 ——————————————————————————– WKN: 676650; ISIN: DE0006766504; Index: MDAX Listed: Amtlicher Markt in Frankfurt (Prime Standard) und Hamburg; Freiverkehr in Berlin-Bremen, Düsseldorf, München und Stuttgart 140752 Aug 03