029 Group SE

Earnings Release • Aug 19, 2005

News Details

Ad-hoc | 19 August 2005 16:54

Business Development of Armstrong DLW AG, Bietigheim-Bissingen

Ad hoc announcement §15 WpHG Half Year Results Business Development of Armstrong DLW AG, Bietigheim-Bissingen Ad hoc announcement processed and transmitted by DGAP. The issuer is solely responsible for the content of this announcement. —————————————————————————— Business Development of Armstrong DLW AG, Bietigheim-Bissingen in the First Half Year 2005 Sales development In the first half of the year 2005 Armstrong DLW AG reports 81,1 and Armstrong DLW Group accordingly 179,2 mill. Euro. Results of operation In the first half year Armstrong DLW AG shows an operational loss of 26,5 mill. Euro and reached a pre-tax loss amounting 26,2 mill. Euro. The preponderant part of the negative result is caused by an exceptional depreciation of an investment in an associated company. The trading result at the end of the first half-year 2005 showed a loss of 3,2 mill. Euro. The operative business was on the one hand affected by the rising raw material prices, which could not be forwarded to our customers to the same extend and on the other hand by higher expenses for sales and marketing activities. The Armstrong DLW Group reports a half-year loss of 17,4 mill. Euro and reached a pre-tax loss of 16,6 mill. Euro. Beside the before mentioned reasons impacting the operative business an exceptional depreciation of real estate and buildings lead to the negative results. The trading result at the end of the first half year 2005 showed a loss of 12,7 mill. Euro in the Armstrong DWL Group. Based on the existing profit transfer agreement at some Armstrong DLW AG subsidiaries, their results in the half-year presentation will be only shown in the Group and not in the Armstrong DLW AG. The loss declared in this regard amounts to 9,9 mill. Euro as per June 30th , 2005 and covers also losses of exceptional depreciation of real estate and buildings. In case these losses still exist by December 31st 2005, they will be absorbed in the annual result on basis of the profit transfer agreements at Armstrong DLW AG. Orders received and orders on hand The Armstrong DLW AG received orders in the amount of 82,5 mill. Euro. Order backlog amounts to 16,9 mill. Euro. Orders received with the Armstrong DLW Group amounted to 204,4 mill. Euro. Order backlog amounts to 51,8 mill. Euro. Investment and financing In the first six months of 2005, Armstrong DLW AG realized investments of 2,1 mill. Euro and Armstrong DLW Group invested 2,9 mill. Euro As evidence of its continuing support, the Armstrong Group provided new loans of total 13 Mill. Euro to the Armstrong DLW Group and additional 5 mill. Euro to the Armstrong DLW Group. Employees On June 30th, 2005, the Armstrong DLW AG had 1.100 employees and Armstrong DLW Group counted a total number of 2.278 employees. Outlook Mr. Thomas Diepenbruck was by decision of the Supervisory Board appointed Member of the Management Board and Chief Financial Officer with effect of 1st September 2005. Mr. Diepenbruck has been serving as interim general representative since March 2005. This appointment of the CFO is part of the changes to Armstrong DLW management change that began with the appointment of Mr. David M. Randich as the Chairman of the Management Board and Mr. Ton Raaphorst as a Member of the Management Board for Sales & Marketing in August 2004. With the new board members Armstrong DLW AG has taken steps to improve several business processes. No comparison is provided here to the Armstrong DLW AG and Group HGB figures, since in the course of the preparation of this years half-year report inconsistencies were identified in regard of the half-year figures 2004, released on August 24th 2004. Reasons therefore are under review. The 2004 full year results are not affected by these issues. Management instead recommends a comparison of the results to the company’s audited full year 2004 financials. The annual report 2004 is released on the Armstrong DLW AG homepage. The already mentioned pressure on margins is likely to remain in the market in view of ongoing high raw material prices and the remaining high overcapacities. During the second quarter 2005 we saw a positive sales development, which among others things, results from the new product introductions and their good acceptance in the market. We expect this trend to continue, since further product introductions are planned. 19. August 2005 David M. Randich Chairman of the Management Board Armstrong DLW AG Armstrong DLW AG Stuttgarter Straße 75 74321 Bietigheim-Bissingen Deutschland ISIN: DE0005518005 WKN: 551800 Listed: Amtlicher Markt in Berlin-Bremen, Düsseldorf, Frankfurt (General Standard), Hamburg, Hannover, München und Stuttgart End of ad hoc announcement (c)DGAP 19.08.2005 191654 Aug 05