CEWE Stiftung & Co. KGaA — Earnings Release 2004

Nov 22, 2004

News Details

Ad-hoc | 22 November 2004 21:08

CeWe Color increases third-quarter volume, sales and earnings

Ad-hoc-announcement processed and transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– CeWe Color increases third-quarter volume, sales and earnings Oldenburg, November 22, 2004 – CeWe Color Holding AG (SDAX, ISIN DE0005403901) – the largest photofinisher in Europe – was able to increase 2004 third- quarter turnover in comparison to that of the previous year by 3.1 %, to Euro 139.1 million. The number of colour prints was increased by 6.2 %, to just over 1.3 billion. CeWe Color achieved these gains in turnover and in volume primarily through competitors’ plant closures in Germany. At present the photographic market is facing three handicaps: – Tourism has not yet had any positive effect on the volume of photos. – The decline in films sales (- 15 %) is negating success in the digital photo sector. – Prices and profit margins for prints are too low. Growth in volume generates increase in earnings – CeWe Color was able to increase its 2004 third-quarter earnings before tax (EBT) by 4.5 %, to Euro 20.9 million. Earnings after tax were raised by 17.9 % to Euro 13.8 million and cash flow was raised by 29.4 % to Euro 27.7 million. Weak profits at mid- year 2004 are still reducing earnings before tax (EBT) for the I. – III. quarters of 2004 by 42.9 %, to Euro 12.1 million, earnings after tax by 78 % to Euro 2.6 million and cash flow by 10.1 % to Euro 35.7 million. Measures and medium-term aims – The Board of Management of CeWe Color Holding AG is continuing to pursue the targets published after the second quarter of 2004: – The development, production and marketing of new digital products – Raising prices and profit margins for prints. – Restructuring loss-generating business areas – Optimising efficiency and effectiveness in all of the corporate sectors – generating growth Profits targeted for 2004 confirmed – Digital business continues to grow at pleasing growth rates of more than 200 %. Prices for prints and profit margins will be raised in all of our sales regions in Europe during the fourth quarter of this year. Retailers are also beginning to raise margins for photos from films, which at present are too low for them. Measures intended to improve structures and to generate growth have been commenced. For this reason the management of the company is confident that operative targets published after the second quarter of 2004 will be reached: – Development in volume: Conventional – 8 % Digital + 200 % Total + 1 % Sales: +/- 0 % Profits: Cash Flow 42 million Euro (2003: 46 million Euro) EBT 10 million Euro (2003: 13 million Euro) Investments: 32 million Euro (2003: 41 million Euro) Dividends: 60 cents (2003: 80 cents) Should you have any queries please: CeWe Color Holding AG, Hella Meyer, 26133 Oldenburg, Tel.: +49 (0)441 / 404 – 400 or +49 (0)171 / 34 50 530, Fax: – 421, eMail: hella.meyer@cewecolor.de, Internet: http://www.cewecolor.com end of ad-hoc-announcement (c)DGAP 22.11.2004 ——————————————————————————– WKN: 540390; ISIN: DE0005403901; Index: SDAX Listed: Geregelter Markt in Berlin-Bremen und Frankfurt (Prime Standard); Freiverkehr in Düsseldorf, Hamburg, München und Stuttgart 222108 Nov 04