Ad-hoc | 28 June 2004 08:23

Villeroy & Boch: restructuring of the Tile Business Segment

Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Villeroy & Boch: restructuring of the Tile Business Segment On June 25th, following the sale of its factory at Oiry, France two weeks ago, Villeroy & Boch is selling a further three tile factories, in Italy, Hungary and Romania, to the Austrian Lasselsberger Group. These sales are part of Villeroy & Boch’s announced capacity adjustments and new strategic orientation. The sale in Hungary and Romania is subject to approval by the Cartel Office. The products manufactured under the “Villeroy & Boch” brand name in Italy and at the Oiry factory, will be transferred for the most part to the factory at Merzig/Saar. The reorganisation of tile-sector activities, involving concentration on the two core locations at Merzig/Saar and La Ferté Gaucher/France, should ensure a better utilisation of factory capacity and lead to improved performance. The complete “tile” range is to be maintained by expanding complementary purchases. As a result of these measures, the number of persons employed in the remaining tile factories will decrease from 2,100 to 1,380 by the end of the year. In so doing, the Tile Business Segment will remain an integral part of the successful “House of Villeroy & Boch” concept, that is part of the integral product range of complete bathrooms. Despite declining tile sales in the first five months, it was possible to increase Villeroy & Boch’s consolidated sales by 4.6%. Additional growth and higher earning power is expected as a result of expanding the profitable Ceramic Sanitary Ware and Tableware Divisions and optimising the Wellness Division. end of ad-hoc-announcement (c)DGAP 28.06.2004 ——————————————————————————– WKN: 765723; ISIN: DE0007657231; Index: SDAX Listed: Amtlicher Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, München und Stuttgart 280823 Jun 04