Bechtle AG — Earnings Release 2000

Aug 31, 2000

News Details

Ad-hoc | 31 August 2000 08:32

Ad hoc-Service: Bechtle AG

Ad-hoc Mitteilung übermittelt durch die DGAP. Für den Inhalt der Mitteilung ist allein der Emittent verantwortlich. —————————————————————————— english ad-hoc-version Bechtle continues to expand in 2nd quarter Growth in e-commerce 111 %, system integration 60 % / acquisition of yet another system house Gaildorf (Bechtle). Bechtle AG at the end of the second quarter is still determined to achieve its ambitious goal of exceeding the one billion (DM) sales mark. Despite an extremely difficult market environment, Bechtle made its presence felt yet again with an outstanding 68 percent increase in sales in the first half of 2000. Sales rose to DM 394.7 million in the first six months of the current fiscal year, compared with DM 234.7 million for the same period of the previous year. E-commerce business performance once again proved to be particularly successful, boasting a Europe-wide increase of 111 percent. Total sales in the e-commerce segment amounted to DM 76.5 million, with DM 62.6 million achieved primarily through its own sales efforts. DM 14.3 million resulted from the acquisition of Schweizer ComSoft Data direct SA in Gland, Switzerland. With this acquisition, Bechtle now has the status of a Microsoft Large Account Reseller for all the domestic members of the Group, which will have a positive impact on the Group’s buying conditions. System integration business grew 60 percent overall, and is accounted for primarily by the acquisition of four companies prior to 30th June. Internal growth increased 4 percent despite a currently sharply declining market. Results stay positive Although demand in the services segment was again unsatisfactory, the first six months ended with positive results. Gross profit from sales increased by 42.1 percent to DM 46.6 million. As a percentage of sales, however, this was 11.8 percent compared with 14.8 percent in the same period of the previous year, resulting primarily from this decline in the services segment. This is also evident in the EBIT, which amounted to DM 2.9 million in the first six months, compared with DM 8.3 million in the previous year. The EBITDA, at DM 11.4 million, remained close to the previous year’s figure of DM 13 million. Despite the reduced demand, the workforce was not reduced in the services segment. The target, however, was maintained, in order to be ready for any significant recovery on the market. The time was used, therefore, to provide extensive and thus cost-intensive training for Bechtle personnel. The current situation on the market supports this assessment. In the third quarter, a quite perceptible increase in demand is already evident, resulting in a significant increase in sales in July. “We are convinced, therefore, that we will achieve the targets we have set for the second half of the year,” commented CEO Gerhard Schick. New e-commerce company in Belgium Evidence that the internationalisation of Bechtle’s strong e-commerce business area is moving ahead has been highlighted with another European e-commerce subsidiary that was set up recently in Belgium. Bechtle is now represented in eight European companies with this new company. A new edition of the Bechtle Catalogue, which supports the products and services available on the Web in direct sales, is to appear soon, comprising 210,000 copies printed in three languages. There is also a sharp increase in the demand for the business-oriented workplace portal Bechtle Bios( (Bechtle Information and Ordering System), which streamlines IT ordering processes and offers considerable savings potential. Around 200 companies have chosen to use this cost-reducing tool to date. The number of users has doubled since the IPO. In addition, with the acquisition in July of the current fiscal year of H. Hartmann GmbH and its very popular e- commerce brand “All Around My Mac”, the extensive Bechtle IT Internet portfolio has now been rounded off most successfully with the complete range of Apple products. Another system house acquired In the system integration segment, BCS Computer- Vertriebs GmbH in Rottenburg has been taken over, allowing Bechtle to expand its coverage even further, and giving it a key position in the region south of Stuttgart, together with Braun Computer GmbH, which was acquired in July of the current fiscal year. BCS had sales of DM 22 million in 1999 and services prime customers in its regional territory. The acquisition has also allowed Bechtle to expand its area of competence quite significantly and, at the same time, its e-commerce position in the field of active network components. High liquidity Although Bechtle has already acquired five system houses and two e-commerce specialists this year, the company’s liquidity is still very high. “We have considerable equity capital amounting to DM 287 million and liquid funds of DM 139 million. We will, therefore, acquire more companies, without burdening ourselves with long-term liabilities,” explained the CEO of Bechtle AG, Gerhard Schick. Good prospects for the second half of the year The prospects for the second half of the year are judged by the board to be very good: “We have not used the past months simply to make cosmetic corrections to our business results, but have invested in our core strengths and thus laid the foundations for continuing success,” says Schick. “We have proven once again in the second quarter that we can be successful in a very difficult market environment. For this reason, we also look forward to the second half of the year very optimistically.” Ende der Mitteilung