Corporate | 10 November 2003 08:48

A.S. Création Tapeten english

A.S. Création reports strong third quarter 2003 Corporate-news announcement sent by DGAP. The sender is solely responsible for the contents of this announcement. ——————————————————————————– A.S. Création reports strong third quarter 2003 On November 10, 2003, A.S. Création Tapeten AG, Germany’s biggest wallpaper manufacturer, published its interim report for the period ended September 30, 2003. Here is a summary of the report: Sales After a decline in sales in the first two quarters of the current fiscal year, A.S. Création’s sales in the third quarter of 2003 rose by 3.8% from EUR 28.1 million to EUR 29.1 million. Coming in at EUR 90.4 million, Group sales in the first three quarters of the current fiscal year were down only 1.1% on the previous year (EUR 91.4 million). The sales growth came from higher export sales in the Wallpaper Division. Compared to the other German wallpaper manufacturers, A.S. Création increased its market share from approximately 27% in the previous year to 28% in the current year. In contrast, the Furnishing Fabrics Division reported a decline in sales in the third quarter of 2003 due to weak consumer spending in the high-end market segment. Financial and earnings position Higher sales coupled with the initiated cost-cutting measures resulted in an increase in earnings before taxes by EUR 0.3 million or 19.6% from EUR 1.6 million in the third quarter of 2002 to EUR 1.9 million in the third quarter of 2003. A.S. Création thus reduced the decline in earnings compared to the previous year, which had still amounted to EUR 1.7 million or 36.5% in the first half of 2003, to 22.3%. Cumulative earnings before taxes in the first three quarters of 2003 came to EUR 5.0 million (2002: EUR 6.4 million). DVFA/SG earnings per share in the first three quarters of 2003 reached EUR 1.07, after EUR 1.40 in the same period of the previous year. In spite of the difficult economic environment, the capital expenditure programme was carried out 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 9.0 million, capital expenditure in the first three quarters of 2003 was up 85.2% on the same period of the previous year (EUR 4.8 million). In addition to the high volume of capital spending, 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. At 52.0% as of September 30, 2003, the equity ratio nevertheless remained at a very high level (Dec. 31, 2002: 52.1%). Outlook Based on the strong third quarter, the Managing Board of A.S. Création Tapeten AG expects the sales and earnings position to continue to improve in the last quarter of the current fiscal year, which should further reduce the decline in earnings compared to the previous year. A summary of the Group’s key figures for the nine-month period ended September 30, 2003 is provided below: 01.01.- 01.01.- 30.09.2003 30.09.2002 Change Sales EUR’000 90,434 91,433 – 1.1 % Earnings before interest and taxes EUR’000 6,065 7,379 -17.8 % Earnings before income taxes EUR’000 4,968 6,397 -22.3 % Net profit EUR’000 2,982 3,900 -23.5 % DVFA/SG earnings per share EUR/Share 1.07 1.40 -23.6 % Gross Cash flow EUR’000 10,081 11,423 -11.7 % Capital expenditures EUR’000 8,964 4,841 85.2 % Depreciation EUR’000 6,004 6,361 – 5.6 % Number of employees (average) 604 611 – 1.1 % Gummersbach, November 10, 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 http://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 10.11.2003 ——————————————————————————– WKN: 507990; ISIN: DE0005079909; Index: Listed: Amtlicher Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart 100848 Nov 03