Earnings Release • Feb 25, 2010
Earnings Release
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Corporate | 25 February 2010 08:00
KWS SAAT AG: confirms good expectations for fiscal 2009/2010
KWS SAAT AG / Half Year Results/Half Year Results
25.02.2010 08:00
Dissemination of a Corporate News, transmitted by
DGAP - a company of EquityStory AG.
The issuer / publisher is solely responsible for the content of this announcement.
KWS SAAT AG confirms good expectations for fiscal 2009/2010
Forecast confirmed: Slight rise in net sales - Income on a par with the
previous year's good figure - Strengthening of R&D activities
(Einbeck, February 25, 2010/No. 5/gf) - KWS SAAT AG (ISIN: DE0007074007),
one of the leading international seed companies, reaffirms that it will be
able to follow up on last year's outstanding results in the current fiscal
year, 2009/2010. The Executive Board is backing up its forecast with
reference to the strong performance of the company's varieties -
particularly in corn breeding.
As a result of the seasonal nature of its business, the KWS Group's net
sales in the first half of the year usually only account for just under a
fifth of the total annual figure and are thus not a final indication of the
trend for the year as a whole. In the six months from July to December, net
sales were EUR120.6 (141.8)* million, down around 15% from the previous
year.
Better sales opportunities for corn in the current year
Net sales and income from the sugarbeet business were at the level of the
previous year. As stated in the report for the first quarter, the drop in
prices for cereals for consumption during the fall sowing season resulted
in a sharp decline in demand for certified seed for cereals. The
performance of the corn segment was impacted by lower rapeseed business and
shifts in net sales to the next quarter. However, its income profited from
the reversal of allowances for payments that have now been received and for
inventories, and from a reduction in internal license costs.
'The sales opportunities for our corn business in the current year have
further improved as a result of our good variety performance and the fact
that the liquidity situation of our customers in Southeastern and Eastern
Europe is slowly stabilizing,' said Hagen Duenbostel, Chief Financial
Officer of KWS SAAT AG, about the outlook for the year as a whole.
Research and development as a driver of future growth
To secure future growth and build on its good market position, KWS has
significantly strengthened research and development activities in the core
segment of breeding and services and has again made large investments. This
is also reflected in the size of the workforce of the KWS Group, which will
likely grow to more than 3,400 (3,215) by the end of the fiscal year.
Operating income (EBIT) was EUR -52.1 (-39.9) million, reflecting the
strategic expansion of R&D activities and the drop in contribution margins
from cereals and rapeseed business. 'On the other hand, the level of
payments received and early orders by our customers were good, enabling us
to reverse allowances for receivables and inventories,' noted Duenbostel in
discussing the company's earnings performance. Net financial
income/expenses improved to EUR -1.8 (-2.1) million as a result of the
currently low level of interest. Income after taxes at December 31, 2009,
was EUR -39.3 (-30.2) million.
KWS continuing its growth
The Executive Board expects net sales at the KWS Group to rise slightly in
the current fiscal year and earnings strength to remain at the same level.
The corn business will remain the segment with the strongest growth.
The quarterly report can be downloaded at www.kws.com/ir.
Contact:
Georg Folttmann
Phone: +49 (0)55 61 / 311-640
* The figures in parentheses are those for the previous year
25.02.2010 Ad hoc announcement, Financial News and Media Release distributed by DGAP.
Media archive at www.dgap-medientreff.de and www.dgap.de
Language: English
Company: KWS SAAT AG
Grimsehlstraße 31
37574 Einbeck
Deutschland
Phone: +49 (0)5561 311-0
Fax: +49 (0)5561 311-322
E-mail: [email protected]
Internet: www.kws.de
ISIN: DE0007074007
WKN: 707400
Indices: S-DAX
Listed: Regulierter Markt in Frankfurt (Prime Standard), Hannover;
Freiverkehr in Berlin, Düsseldorf, München, Hamburg,
Stuttgart
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