Dr. Hoenle AG

Earnings Release • Aug 26, 2002

News Details

Ad-hoc | 26 August 2002 01:30

Dr. Hönle AG english

Dr. Hönle AG: Economic Conditions Impact on Revenues and Earnings in 2002 Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Dr. Hönle AG: Economic Conditions Impact on Revenues and Earnings in 2002 Munich, August 26, 2002. Hönle, a leading systems provider of industrial UV technology, reported revenues of EUR 9.7 million in the first nine months of the current financial year (9-month period 2000/2001: EUR 13.1 million). Third- quarter revenues were at EUR 2.9 million (Q3 2001: EUR 4.1 million).The revenue decrease was due to the weak economic conditions in all important industrial nations; the signs of an economic upswing apparent in the spring of 2002 did not materialise. EBIT in the first nine months of the current financial year amounted to EUR -0.9 million after EBIT of EUR 2.3 million for the same period in the previous year. The after-tax result was a loss of EUR -0.2 million compared to EUR 1.6 million reported in 2000/2001. In the third quarter of 2001/2002, EBIT was at EUR -0.7 million (Q3 2000/2001: EUR 0.3 million) and the after-tax result was a loss of EUR -0.4 million. (Q3 2000/2001: EUR 0.6 million). Despite declining revenues the parent company, Dr. Hönle AG, continued to report positive results. Earnings were influenced mainly by the formation and start-up costs for new subsidiaries, with which Hönle is expanding its value chain into that of a systems provider. Despite these investments the company is backed by solid financing with securities, participating certificates and cash valued at EUR 16 million, or more than EUR 3 per share as of June 30, 2002. The equity ratio is at 81.9 %. The pile-up of investment projects, which is evident in all industries, impacted on the business development in the first nine months of 2001/2002. A recovery is no longer expected for the rest of the financial year. Due to the current orders position Hönle expects a 25 to 30 percent revenue decrease compared with the previous financial year. This decline and the setting up of new subsidiaries are expected to result in a loss for the current financial year. In 2003 Hönle expects an economic upswing, followed by perceptible growth in revenues and significant profits from Dr. Hönle AG as well as the new subsidiaries. The UV- lamps manufacturer Aladin already reached a monthly break even in July 2002, only 9 months after the start of series production. end of ad-hoc-announcement (c)DGAP 25.08.2002 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: The Hönle Group has been concentrating on organic growth through innovations and the formation of subsidiaries since the autumn of 2001. Consequently, the company increased its expenditures for research and development by 80.6 percent in the current year, bringing the total R&D expenses to EUR 1.0 million. With the addition of Aladin GmbH and Wellomer GmbH, a manufacturer of UV adhesives, the company is systematically expanding its services spectrum into that of a systems provider for UV technology. With Honle Spain S.A. and the representation in Shanghai, China, opened in the third quarter of 2001/2002, the company is continuing its course of cautious expansion of international sales and marketing activities. Shanghai provides the basis for tapping into an East Asian market, which is very interesting from the standpoint of UV products in particular. Moreover, Hönle continues to watch the market and the competition very carefully and does not exclude the possibility of acquisitions if these would lead to a permanent increase in corporate value. In all, Hönle is better prepared for the projected economic upswing in 2003 than it has ever been in the past and consequently expects significant growth in revenues for the future. The UV technology continues to offer significant advantages over conventional methods, with the result that it can replace existing production processes and simultaneously become permanently established in new areas of application. These developments, in conjunction with the improved earnings situation at the new subsidiaries, will ensure that Hönle again realises significant profits in a more optimistic economic environment. Further information is available under: http://www.hoenle.de, contact: Dr. Hönle AG, Peter Weinert, Investor Relations Manager, Lochhamer Schlag 1, 82166 Gräfelfing/Munich, Tel.: 089-85 608-173, Fax: 089-85 608-101, E-Mail: ir@hoenle.de ——————————————————————————– WKN: 515710; ISIN: DE0005157101; Index: Listed: Neuer Markt in Frankfurt; Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, München und Stuttgart 260130 Aug 02