CEWE Stiftung & Co. KGaA — Earnings Release 2004

May 24, 2004

News Details

Ad-hoc | 24 May 2004 16:38

CeWe Color Holding AG: – Report on the I. quarter of 2004 –

Ad-hoc-announcement processed and transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– – Report on the I. quarter of 2004 – Hard times with good opportunities on the market Oldenburg, May 24, 2004 – Despite declines in sales in the face of a difficult market situation, CeWe Color Holding AG (ISIN DE 000 540 3901, SDAX) – the largest photofinisher in Europe – was able to reinforce its position among competitors and further extend its market shares on the European continent. The photofinishing branch is currently suffering under the influence of consumer caution as a result of a weak economy as well as a slowdown in travelling activities (50 % of all photos taken are those snapped during holiday trips). Unfortunately, this situation did not improve during the first quarter of 2004. First-quarter sales dropped in comparison to the strong first quarter in 2003. The decline amounted to 9.6 %, down to 77.2 mill. Euro, and was primarily due to the fact that January was such a weak month. The drop in sales amounts to 7.7 % if exchange-rate losses in Central Eastern Europe, Norway and Switzerland are not taken into consideration. In the photofinishing sector, the first quarter of the year always generates losses due to low capacity utilization as a result of little travelling activity. Cash flow is therefore at – 0.2 mill. Euro, profit before tax (EBT) total – 9.9 mill. Euro and profit after tax amount to – 9.5 mill. Euro. The negative situation on the market will enhance the position of the company among competitors in the medium term Digital photography necessitates considerable investments in appliances, systems and human resources. Last year CeWe Color invested more than 40 mill. Euro, primarily in digital technology and production plants. This year the corporate group intends to invest another 30 to 35 mill. Euro. Minor competitors are being forced out of the market since they are not in a position to make such investments. One of the most significant competitors in the field of photofinishing has announced that it will be withdrawing from the industrial laboratory sector, at least on a regional basis, within the scope of a change in corporate strategy. In view of this development, CeWe Color now has the chance to expand its market leadership. The group has already managed to expand its third-quarter market share in Germany, Austria and Central Eastern Europe by means of recent successful acquisitions. Improvement in earnings expected in third quarter On the basis of this competitive advantage and also because of stimulation in the travel business, the management of the company expects earnings to improve, particularly in the third quarter of the year. The summer quarter, as a season of travelling with high capacity utilisation, is decisive for the volume of profit generated for the year. Targets set for development in volume, sales and profits for the full year of 2004 remain the same as forecasts published in March: – Development in volume conventional -8 % to -15 % digital +150 % to +200 % total +/- 0 % to – 7 % – Development in sales +/- 0 % to – 7 % – Profits Cash flow 40 to 50 mill. Euro (2003: 46.5 mill. Euro) EBT 10 to 18 mill. Euro (2003: 13.2 mill. Euro) – Investments 30 to 35 mill. Euro (2003: 40.6 mill. Euro) – Dividends -.70 to -.90 Euro (2003: -.80 Euro) 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 end of ad-hoc-announcement (c)DGAP 24.05.2004 ——————————————————————————– WKN: 540390; ISIN: DE0005403901; Index: SDAX Listed: Geregelter Markt in Berlin-Bremen und Frankfurt (Prime Standard); Freiverkehr in Düsseldorf, Hamburg, München und Stuttgart 241638 Mai 04