A.S. Creation Tapeten AG

Earnings Release • Nov 7, 2005

News Details

Corporate | 7 November 2005 09:39

A.S. Création Tapeten AG continues to grow in Q3 2005

Corporate-news transmitted by DGAP. The issuer is solely responsible for the content of this announcement. —————————————————————————— A.S. Création continues to grow in Q3 2005 and reports a 7.6% increase in sales growth and 10.9% earnings growth for the year to date On November 7, 2005, A.S. Création Tapeten AG, Germany’s largest wallpaper manufacturer, published its interim report for the nine-month period ended September 30, 2005. A summary of the report is provided below: Continued sales growth in Germany and abroad The positive sales performance of the first six months continued in the third quarter of the fiscal year. While sales rose by 6.9% in the first half of 2005, the third quarter saw sales up by 9.0%. Consolidated sales for the first nine-months amounted to EUR 109.7 million, up EUR 7.7 million or 7.6% on the previous year’s EUR 102.0 million. As the domestic market and foreign markets account for almost equal portions of this year’s sales growth, the percentage of international sales to total sales has remained virtually unchanged at 57.4% (2004: 57.9%). Accounting for 72.3% of gross sales (2004: 74.7%), the EU remains A.S. Création’s most important output market. Good earnings position despite increased energy and raw material prices Earnings growth slowed down somewhat in the third quarter due to higher raw material and energy prices in combination with competitors’ aggressive pricing in the wallpaper market. At EUR 8.9 million, A.S. Création’s earnings before taxes (EBT) for the first nine months were nevertheless up 9.7% on the previous year’s EUR 8.1 million. EBT as a percentage of sales reached 8.1% (2004: 8.0%). Financial structure remains robust FY 2005 again proves A.S. Création’s high internal financing strength. Due to the fact that the operating result again improved despite higher depreciation, gross cash flow amounted to EUR 12.5 million in the first nine months of 2005, up 6.8% on the previous year’s EUR 11.7 million. In the first nine months of 2005, the improved gross cash flow had to cover a much higher capex volume. At EUR 7.7 million, the capex volume in the first half of the year was up EUR 2.5 million on the previous year’s EUR 5.2 million. This increase is mainly attributable to the purchase of a screen printing press acquired in the context of the bankruptcy proceedings of a competitor. This project has a total volume of EUR 3.1 million and is fully included in the capital expenditure of the first nine months of the current fiscal year. Net financial liabilities (interest-bearing liabilities less liquid funds), which amounted to EUR 20.6 million as of June 30, 2005, were reduced to EUR 16.9 million as of September 30, 2005. A further reduction in net financial liabilities is planned by the end of the year. The equity ratio increased further and reached 56.7% as of September 30, 2005 (December 31, 2004: 55.1%). A.S. Création’s financial structure thus remains robust and healthy. Projections for the full year 2005 confirmed Overall, the Managing Board sticks to its projections for the full year 2005, which see sales at approx. EUR 140 million and net profit at between EUR 7 and 7.5 million. Due to the development of raw material and energy prices, the result will probably tend to be in the lower half of this band, however. A summary of the Group’s key figures for the nine-month period ended September 30, 2005 is provided below: 01.01. 01.01. -30.09. -30.09. 2005 2004 Change ————————————————- ——- ——- —— Sales EUR’000 109,704 101,999 7.6 % Earnings before interest and taxes (EBIT) EUR’000 9,996 9,370 6.7 % Earnings before income taxes EUR’000 8,898 8,110 9.7 % Net profit EUR’000 5,290 4,771 10.9 % DVFA/SG earnings per share EUR/share 1.90 1.71 11.1 % Gross cash flow EUR’000 12,474 11,676 6.8 % Capital expenditures EUR’000 7,728 5,182 49.1 % Depreciation EUR’000 6,290 5,725 9.9 % Number of employees (average) 636 634 0.3 % Gummersbach, November 7, 2005 A.S. Création Tapeten AG The Managing Board 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 announcement (c)DGAP 07.11.2005 —————————————————————————— WKN: 507990; ISIN: DE0005079909; Index: Listed: Amtlicher Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart