CEWE Stiftung & Co. KGaA — Earnings Release 2003

Nov 25, 2003

News Details

Ad-hoc | 25 November 2003 08:00

CeWe Color generates a third-quarter EBT of Euro 20 million

Ad-hoc-announcement processed and transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– CeWe Color generates a third-quarter EBT of Euro 20 million Oldenburg, November 25, 2003 – CeWe Color Holding AG (SDAX; ISDN DE 0005403901) – the largest independent European photofinisher – has, by means of cost reductions and enhanced productivity, adapted well to the current consumer slump as well as to a decline in the travel sector. In the photofinishing sector, the third quarter, due to holiday trips undertaken in the summer season, is one of high capacity utilisation rates and is hence the most productive quarter. With earnings before tax (EBT) amounting to Euro 20.0 million, profits for the third quarter are 4.6 % below those of the same period of the previous year (Euro 21.0 million), but CeWe Color has nevertheless managed to raise the return on sales from 14.6 % to 14.8 %. The corporate group has alleviated expenses in significant cost areas. The cost of material, for example, was lowered by 5.2 %, personnel costs by 4.4 %, depreciation by 13.0 % and other operating expenses by 7.0 %. This means that a major proportion of the 6 % drop in turnover as a result of the slow-down in the tourism sector was offset on the bottom line. Decline in activity in the tourism sector has a negative effect on sales in Central Europe and France – Around 50 % of all colour prints produced are photos which have been taken during holidays – and in the summer months this figure even exceeds 60 %. According to Europe’s second-largest tour operator, Thomas Cook, the tourism sector in Germany has declined by 25 % in 2003 in comparison to the same period of 2001. CeWe Color has been particularly hard hit by the decline in Central Europe and in France. While Group turnover for the first nine months dropped from Euro 342.5 million to Euro 327.3 million, a drop of 4.4 %, turnover dropped by 4.3 % in Central Europe and by 9.0 % in France. On the other hand, Benelux, at a decline of 1.6 % and Central Eastern Europe, which declined by 1.8 %, only reported slight drops in turnover. 2003 outlook – For 2003, the Board of Management of CeWe Color Holding AG expects turnover to drop by between 4 % and 5 % in comparison to that of the previous year. Profits (EBT) are expected to drop by between Euro 4 million and Euro 6 million in comparison to those of the previous year. Due to the strong growth in the volume of digital business, investments in digital print systems scheduled for 2004 are being brought forward to 2003, which means that capital expenditure for 2003 will amount to Euro 35 million. Thanks to these results and to opportunities for the future being presented in the field of digital photography, CeWe Color shareholders can still expect to receive above-average dividends. end of ad-hoc-announcement (c)DGAP 25.11.2003 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: Change of the Customer Portfolio in the Business Year 2004 Big changes in the market lead to a change of CeWe Color’s customer portfolio. In Germany, CeWe Color has been able to gain as new customers a leading chain in the field of consumer electronics, as well as department and book stores. In Austria and Central Eastern Europe, CeWe succeeded in further enhancing its market share in the field of photo specialized trade and drugstores. Moreover, the CeWe Color group takes over the sales of the fotofinisher Föfoto in Hungary. In France, CeWe Color abandons the exclusive supply of its most important customer, however, continues to gain new customers in the field of bookselling and food trade. Overall considered, a re-arrangement of the turnover will take place in the regional segments in the business year 2004. Should you have any queries, please contact: CeWe Color Holding AG, Hella Meyer, Tel.: 0441 / 404 – 400 or 0171 / 34 50 530 Fax: 0441 / 404-421, email: hella.meyer@cewecolor.de, Internet: http://www.cewecolor.com ——————————————————————————– WKN: 540390; ISIN: DE0005403901; Index: SDAX Listed: Geregelter Markt in Berlin-Bremen und Frankfurt (Prime Standard); Freiverkehr in Düsseldorf, Hamburg, München und Stuttgart 250800 Nov 03