CEWE Stiftung & Co. KGaA — Earnings Release 2003

Nov 5, 2003

News Details

Ad-hoc | 5 November 2003 08:00

CeWe Color Holding AG english

CeWe Color Holding AG announces its business figures for the III.quarter of 2003 Ad-hoc-announcement processed and transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– CeWe Color Holding AG announces its business figures for the III. quarter of 2003 Oldenburg, November 5, 2003 – CeWe Color Holding AG (SDAX; ISDN DE 0005403901) has announced a 2003 third-quarter profit before tax (EBT) of Euro 20.0 million (previous year: Euro 21.0 million). The number of colour prints produced totalled 1.179 billion (previous year: 1.201 billion), of which 59.9 million are digital photos (previous year: 13.5 million). Turnover amounts to Euro 134.9 million (previous year: Euro 143.5 million). Sluggish travel sector prevents growth in volume Around 50 % of all colour prints produced are photos which have been taken during holidays The tourism sector has announced a 9 % decline in the number of journeys undertaken in 2003. A weak economy, the war in Iraq as well as what was sometimes a paralysing heat wave in July and August all led to a 5.7 % decline in the number of classical prints from films. However, it was possible to offset two-thirds of the decline in volume, which primarily resulted from the decline in the tourism sector, with growth rates generated for digital photos. Unchecked digital growth of 342 % We are most pleased about the unchecked growth in volume in the field of digital photography. The GfK reports a 130 % growth in the number of digital cameras sold in German retail stores during the first six months of this year. During the third quarter of 2003, CeWe Color produced as many as 59.9 million digital photos (+ 342 %). While orders for photos placed in the Internet rose by 246 %, orders for digital photos placed with photo retailers, pharmaceutical stores and home electronics markets rose by as much as 401 %. Digital growth in permanent outlets is being driven by the DigiFilm concept developed by CeWe Color. A total of 5,000 DigiFilm Makers – CD burners for taking in image data from camera cards – have already been installed in retail stores. Profits almost the same as those of last year, increased return on sales While the 2003 second-quarter drop in turnover, when compared to the same period of 2002, was still as much as -7.4 %, in the third quarter of 2003 it had been reduced to -6.0 %. Photofinishing accounts for two-thirds of the drop in turnover, and wholesale and retail activities account for one third. The company was able to reduce costs in all of its operational cost areas (materials, human resources, depreciation and other operational expenses). CeWe Color was thus able to maintain profits generated by business operations (EBIT), at Euro 20.8 million (previous year: Euro 21.3 million, – 2.4 %) and earnings before tax (EBT), at Euro 20.0 million (previous year: Euro 21.0 million, – 4.6 %) at almost the same level. In the third quarter, returns on sales even rose from 14.8 % to 15.4 % (EBIT) and from 14.6 % to 14.8 % (EBT). end of ad-hoc-announcement (c)DGAP 05.11.2003 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: 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 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. 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 050800 Nov 03