029 Group SE

Earnings Release • May 29, 2002

News Details

Ad-hoc | 29 May 2002 20:31

GFN AG english

GFN reports lower sales and EBITDA in first quarter Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Important milestone: permanent 10 percent reduction in costs GFN reports lower sales and EBITDA in first quarter Against the backdrop of a tough economic climate and the weak performance of the IT sector, the GFN Group, which is listed on the German stock exchange’s Neuer Markt, generated sales in the first quarter of 2002 of 5.4 million euros (previous year: 9.4 million euros). The fall in sales was accompanied by a parallel reduction in EBITDA in the first three months from an almost balanced result of minus 0.06 million euros to minus 1.7 million euros. The consolidated net loss for the year was minus 2.2 million euros (previous year: minus 0.8 million euros) and corresponds to results per share of minus 0.40 euros (previous year: minus 0.14 euros). On the reporting date, GFN disclosed liquid funds of 2.7 million euros. The company pursued its policy of streamlining its operations and reduced the number of people on its payroll to 198 (previous year: 235 employees). At the close of 2001, GFN still employed a workforce of 220. GFN concluded its restructuring program during the first quarter of the year. This program is already taking effect, but its full impact is expected to be felt in the second six month period. The company’s strategic reorientation towards “profitability before growth” has also got off to a good start: In the first three months of this year GFN has already managed to bring about a permanent reduction in manpower costs and other operating expenses of around 1 million euros. Total cost savings of 3.5 million euros are planned for the year as a whole. Economic forecasters point to a nascent recovery during the course of the year and particularly during the second six month period. Based on this assumption, the Management Board aims to return the company to profitability during 2002. The company thus plans to stick to its planned objectives for the year 2002 as a whole and aims to return to an operative break-even point and positive cash flow in second half of the year. In addition – provided that the market recovers as predicted – we aim to report balanced operating results (EBITDA). end of ad-hoc-announcement (c)DGAP 29.05.2002 ——————————————————————————– WKN: 587980; ISIN: DE0005879803; Index: Listed: Neuer Markt in Frankfurt; Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, und Stuttgart 292031 Mai 02