Corporate | 11 August 2003 09:53

A.S. Création Tapeten english

A.S. Création reports weak first half of 2003 Corporate-news announcement sent by DGAP. The sender is solely responsible for the contents of this announcement. ——————————————————————————– On August 11, 2003, A.S. Création Tapeten AG, Germany’s biggest wallpaper manufacturer, published its interim report for the period ending on June 30, 2003. Here is a summary of the report: Sales After an already unsatisfactory level of sales in the first quarter of 2003, in which sales were down 2.0% on the previous year, sales performance in the second quarter of 2003 was even weaker, with sales declining by 4.8%. In the first half of 2003, A.S. Création generated Group sales of EUR 61.3 million, down 3.3% on the same period of the previous year. Despite the decline in sales, A.S. Création’s Wallpaper Division outperformed the German wallpaper market. Compared to the other German wallpaper manufacturers, A.S. Création increased its market share from approx. 27% in the previous year to 28% in 2003. The level of absolute sales is, however, unsatisfactory in the view of the Managing Board. Financial and earnings position In the first half of 2003, the earnings position clearly deteriorated compared to the same period of the previous year. Lower sales coupled with an increase in raw materials prices in the second half of 2002 resulted in a decline in earnings before taxes by 36.5% from EUR 4.8 million in the first six months of 2002 to EUR 3.0 million in the same period of the current fiscal year. In the first half of 2003, DVFA/SG earnings per share reached EUR 0.66, after EUR 0.99 in the same period of the previous year. In spite of the difficult economic environment, the capital expenditure program was continued as planned. In addition to the completed expansion of production capacities at the Wiehl-Bomig plant including a new production hall and a new combined 10-colour rotary screen/gravure printing press, higher expenses for printing tools for the production of new collections contributed to a significant increase in capital expenditure. At EUR 8.1 million, capital expenditure in the first half of 2003 was up 180.9% on the same period of the previous year (EUR 2.9 million). The higher capital expenditures in the product range reflect the so-called ‘major collection change’ implemented by German wallpaper wholesalers and retailers every two years. In this context, large parts of the product range are replaced and the fundamental decisions about the product ranges for the next two years are made. Based on the initial response to the samples for the major collection change, the Managing Board is confident that the investments in the company’s product range will pay off and vindicate the full-range strategy pursued by A.S. Création. In addition to the very high volume of capital expenditure, in particular the payment of a dividend of EUR 0.90 per share or EUR 2.5 million in total, which was the highest dividend ever paid in A.S. Création’s history, resulted in higher liquidity requirements. The weaker operating result weighed on the company’s gross cash flow which fell from EUR 7.8 million in the first half of 2002 to EUR 6.7 million in the same period of the current fiscal year. Consequently, the internal financing strength was not sufficient to cover the liquidity requirements. As a result, A.S. Création’s net financial debt increased. At 48.9% as of June 30, 2003, the equity ratio nevertheless remained at a very high level (Dec. 31, 2002: 52.1%). Outlook Based on the negative trends that became apparent in the second quarter of 2003, the Managing Board of A.S. Création Tapeten AG expects no turnaround in the economic environment in the second half of the year. A summary of the Group’s key figures for the first half of 2003 is provided below: 01.01. 01.01. Change -30.06. -30.06. 2003 2002 Sales EUR ‘000 61,297 63,370 -3.3% Earnings before interest and taxes (EBIT) EUR ‘000 3,770 5,436 -30.6% Earnings before income taxes EUR ‘000 3,039 4,784 -36.5% Net profit EUR ‘000 1,836 2,757 -33.4% DVFA/SG earnings per share EUR/share 0.66 0.99 -33.3% Gross cash flow EUR ‘000 6,696 7,819 -14.4% Capital expenditures EUR ‘000 8,053 2,867 180.9% Depreciation EUR ‘000 4,025 4,257 -5.4% Number of employees (average) 611 612 -0.2% Gummersbach, August 11, 2003 Inquiries: Maik Krämer, Director of Finance, phone + 49 – (0)22 61/542-387, fax + 49 – (0)22 61/542-304, e-mail m.kraemer@as-creation.de The full interim report is available at www.as-creation.com/investor or from: A.S. Création Tapeten AG, Mrs. Börngen, Südstr. 47, D – 51645 Gummersbach, phone + 49 – (0)22 61/542-350 end of message, (c)DGAP 11.08.2003 ——————————————————————————– WKN: 507990; ISIN: DE0005079909; Index: Listed: Amtlicher Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart 110953 Aug 03