Corporate | 23 March 2009 08:30
STEICO Aktiengesellschaft / Preliminary Results
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- Revenues up to EUR 103.2 million
- Changed market conditions lead to first ever negative result in the
company's history
- Continued high group liquidity
- Group aims for balanced result in 2009
Feldkirchen (near Munich), March 23, 2009 - STEICO AG (ISIN DE000A0LR936)
recorded revenues of EUR 103.2 million in fiscal year 2008 according to
preliminary calculations (previous year: EUR 97.2 million). However, the
change in the market environment and extensive restructuring expenses meant
that it was not possible to avoid a significant reduction in earnings.
That being said, the cost-cutting and restructuring program put in place in
2008 is already having a significant positive effect, and forms the
foundations for the intended recovery in 2009. The STEICO Group continued
its capital expenditure in 2008, investing in particular in projects to
increase efficiency and profitability. In spite of this, however, STEICO
still has a high level of cash and cash equivalents totaling around EUR 17
million, with an equity ratio of around two thirds of total capital.
Summary of key data
2008 (in EUR 2007 (in
EUR
million) million)
Revenues 103.2 97.1
Total operating revenues 106.0 101.9
EBITDA 1.5 13.7
EBIT -6.8 6.7
Profit from ordinary business -7.7 5.9
activities
Consolidated net loss for the year -9.4 1.2
Earnings development
Despite the difficult market, restructuring costs and one-off effects, the
STEICO Group was still able to record a positive operating result (EBITDA).
During the first half of 2008, the deteriorating economic conditions led to
a 'wait-and-see' mood on sales markets, which resulted in oversupply and
high pressure on prices. This also depressed the STEICO Group's revenue
growth and margins. In addition, fluctuations in the exchange rate for the
Polish zloty also put pressure on results. STEICO combated this development
with an end-to-end restructuring and cost-cutting program in the second
half of the year. This was linked to scheduled restructuring costs as well
as one-off factors, in particular at the Polish subsidiary STEICO S.A.
Inventories had to be written down, as the production costs fell
permanently as a result of the effects of the restructuring program. There
were also inventory differences, which were due to a mistake in the
accounting treatment of inventories. In addition, the acquisition of the
production company Casteljaloux SAS in France also resulted in additional
integration costs. EBITDA was also depressed by the formation of a
provision not recognized in income totaling EUR 2.8 million for threatened
losses from currency forwards. In November 2008, STEICO AG hedged pat of
its purchasing volume from the Polish subsidiary STEICO S.A. for 2009 in
order to reinforce the basis for its calculations. This substantially
reduced the effects of fluctuations in the exchange rate. However, since
then the value of the Polish zloty has continued to fall. After adjustment
for this provision the EBITDA margin totaled approx. 4.1 percent of total
operating revenue.
The reduction in EBIT is also due to the increase in amortization and
depreciation due to the high level of capital expenditure in the past few
years. Future investments are mostly to be made in improving efficiency and
thus bolstering profitability.
EBIT included a negative financial result of around EUR 0.8 million, which
was primarily due to interest payments for existing loans for the Polish
subsidiary STEICO S.A.
Tax payments by STEICO AG totaling around EUR 1.7 million led to
consolidated
losses of around EUR 9.4 million.
Impact of restructuring program and outlook
At the end of 2008, the cost-cutting and restructuring program that had
been put in place was already having a significant positive effect. For
example, key offices within the group were re-staffed, the purchasing
department at the Polish subsidiary was successfully restructured and
production efficiency was improved still further in both Poland and also in
France. This allowed significant improvements in the cost structure. What
is more, the STEICO Group also started to further increase its sales
activities, to ensure even greater support for its markets.
The market for ecological construction products and insulation materials
continues to offer attractive perspectives. In addition to long-term energy
savings, a large number of state subsidization programs are also
revitalizing demand. Although the current economic crisis means that
further challenges are to be expected in 2009, the Managing Board believes
that the STEICO Group will enjoy positive growth. The group aims to further
increase its revenues and record a balanced result. This forecast is
supported by business growth in the first few months of 2009 despite the
hard winter and the continuing economic crisis.
The STEICO Group is the European market leader for wood-fiber insulation
materials and is expected to benefit in particular from a future economic
recovery. Today, STEICO has an efficient cost structure, a state-of-the-art
equipment with future-oriented capacity, and a pan-European sales
organization that is geared to success. In addition, the positive liquidity
gives the group far-reaching entrepreneurial latitude. Despite the
difficult environment, STEICO has thus created the foundations required to
be able to link in to its usual earnings again over the medium term, and to
secure further growth.
Company profile:
The STEICO Group develops, produces and sells ecological construction
products made of renewable materials. STEICO leads the European market for
wood-fiber insulation materials with a market share of around 40%.
STEICO is positioned as a system provider for ecological wood construction.
The company's product range includes wood-fiber insulation materials,
hemp-based products, I-joists as construction elements as well as laminated
veneer lumber as merchandise. The production of natural fiber boards (NFB)
rounds off the company's vertical integration and extensive product range -
which are unique in the industry. The Munich-based company's products are
successfully used in home building and renovating floors, walls, ceilings,
facades and roofs.
STEICO's products enable the construction of future-proof, healthy
buildings which offer a particularly high quality of living. STEICO's
products offer reliable protection from cold, heat and noise and also
sustainably improve the building's energy efficiency.
Contact:
Andreas Schulze
STEICO Aktiengesellschaft
Hans-Riedl-Strasse 21
85622 Feldkirchen
Fon: +49-(0)89-99 15 51-48
Fax: +49-(0)89-99 15 51-97
E-Mail: a.schulze@steico.com
www.steico.com
23.03.2009 Financial News transmitted by DGAP
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Language: English
Issuer: STEICO Aktiengesellschaft
Hans-Riedl-Str. 21
85622 Feldkirchen
Deutschland
Phone: +49 - (0)89 - 99 15 51 - 0
Fax: +49 - (0)89 - 99 15 51 - 99
E-mail: info@steico.com
Internet: http://www.steico.com
ISIN: DE000A0LR936
WKN: A0LR93
Listed: Freiverkehr in Berlin, Düsseldorf, München; Entry Standard in
Frankfurt
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