MEDICLIN AG — Earnings Release 2003

Aug 14, 2003

News Details

Ad-hoc | 14 August 2003 08:30

MediClin AG english

Sales of Euro 180 million the first six months of 2003 2.5% below previous year Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Frankfurt am Main, 14 August 2003 MediClin AG, one of the major clinic operators in Germany, achieved consolidated sales including inventory changes of EUR 180.0 million (PY: EUR 184.6 million) in the first half of the 2003 financial year due to a decline in capacity utilisation by 2.4%-points. The Groups occupancy rate was at 76.8% (PY: 79.2%).Cost of materials were reduced by about 3% to EUR 38.2 million (PY: EUR 39.4 million) in comparison with the previous years value, they declined more strongly than sales in spite of price increases. Personnel costs rose by approximately EUR 3 million to EUR 106.7 million (PY: EUR 103.8 million). This rise is due to negotiated wage increases in the first six months of the year by an average of 1.2% in comparison with the previous year and. Owing to the EUR 4.6 million decline in sales revenues and high personnel costs in the first six months of the year, the operating result amounted to minus EUR 7.3 million (PY: minus EUR 1.7 million).The consolidated net loss for the first half year increased in comparison with the previous years period to EUR 10.6 million (PY: EUR 3.6 million).At 76.6% (PY: 78.1%), capacity utilisation in the post acute field perceptibly lagged behind expectations. In all, the post acute medical rehabilitation share rose slightly in comparison to services associated with curative treatment methods. Sales revenues including inventory changes saw a minus 1.9% decline to EUR 107.9 million (PY: EUR 110.0 million). Segment results were minus EUR 8.6 million (PY: minus EUR 4.1 million). The acute segment saw sales revenues including inventory changes of Euro 72.1 million (PY: EUR 74.6 million), the segment result was EUR 1.3 million (PY: EUR 2.4 million). Owing to the still unsatisfactory economic situation and the associated weakness with respect to both the market and demand, the Board of Management no longer assumes perceptible improvements in performance for financial year 2003 compared to the previous year. While the measures taken within the scope of the Compact04 program will take effect in the second half of 2003, their full impact will not become apparent before the 2004 financial year. The detailed 2003 interim report will be available in the internet as from 28.08.2003 under www.mediclin.de. MediClin AG; Investor Relations Phone +49 (0) 69 25 60 02-13 E-Mail: alexandra.muehr@mediclin.de end of ad-hoc-announcement (c)DGAP 14.08.2003 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: MediClin AG: At Euro 180 million, sales revenues in the first six months of 2003 are down by 2.5 percent on the previous year due to lower occupancy rates- Operating result adversely affected through retrograde sales revenues and high personnel costs – Implementation of the Compact04 program for optimisation of the service range and reduction of costs proceeds according to schedule – Improvement in performance not expected before 2004 Frankfurt am Main, 14 August 2003 MediClin AG, one of the major clinic operators in Germany, achieved consolidated sales including inventory changes of Euro 180.0 million (previous year: Euro 184.6 million) in the first half of the 2003 financial year due to a decline in capacity utilisation by 2.4 percentage points. The Groups occupancy rate was at 76.8 percent (previous year: 79.2 percent). Cost of materials were reduced despite higher energy costs by about 3 percent to Euro 38.2 million (PY: Euro 39.4 million) in comparison with the previous years value, they declined more strongly than sales in spite of price increases. The savings effects resulting from the use of modern purchase and scheduling systems are responsible for this development. The cost of materials ratio was 21.2 percent, thus slightly under the previous years figure. Personnel costs rose by approximately Euro 3 million to Euro 106.7 million (PY: Euro 103.8 million). This rise is due to negotiated wage increases in the first six months of the year by an average of 1.2 percent in comparison with the previous year and, additionally, to a delay in the adjustment of personnel capacities to business development. The number of staff saw an average-related decline by 104 to 5,671 (PY: 5,775), calculated on the basis of full time staff.Other operating expenses declined by Euro 2.1 million to Euro 39.8 million (PY: Euro 41.9 million). Other operating income sank by Euro 1.4 million to Euro 7.7 million (PY: Euro 9.1 million). Owing to the Euro 4.6 million decline in sales revenues and high personnel costs in the first six months of the year, the operating result amounted to minus Euro 7.3 million (PY: minus Euro 1.7 million). The financial result declined due to lower interest income and other income received by Euro 0.3 million to minus Euro 3.1 million (PY: minus Euro 2.8 million). The consolidated net loss for the first half year increased in comparison with the previous years period to Euro 10.6 million (PY: Euro 3.6 million). MediClins market segments include post acute and acute medical care. Post acute relates to services provided in the field of medical rehabilitation, i.e. subsequent medical treatment and curative methods while acute medical care involves the services provided by hospitals and clinics.At 76.6 percent (PY: 78.1 percent), capacity utilisation in the post acute field perceptibly lagged behind expectations. In all, the post acute medical rehabilitation share rose slightly in comparison to services associated with curative treatment methods. Sales revenues including inventory changes saw a minus 1.9 percent decline to Euro 107.9 million (PY: Euro 110.0 million). In light of the still weak economy, the restraint in demand associated with concerns about job safety and budget constraints, continue to be responsible for this. Segment results were minus Euro 8.6 million (PY: minus Euro 4.1 million). The acute segment saw sales revenues including inventory changes of Euro 72.1 million (PY: Euro 74.6 million), the segment result was Euro 1.3 million (PY: Euro 2.4 million). The package of measures decided upon by the Board of Management at the change of the year 2002/2003 is being implemented systematically. The core elements of this program are to improve adjustment of capacities to seasonal and structural fluctuations in sales and the establishing of new and innovative services and of marketing and sales concepts. As a consequence of these measures, the clinics will become more resistant to sales fluctuations and will be able to significantly increase efficiency. At the same time, the Groups performance profile will be consistently oriented towards long term growth segments in the health sector; this will have a sustained positive impact on sales revenues. Owing to the still unsatisfactory economic situation and the associated weakness with respect to both the market and demand, the Board of Management no longer assumes perceptible improvements in performance for financial year 2003 compared to the previous year. While the measures taken within the scope of the Compact04 program will take effect in the second half of 2003, their full impact will not become apparent before the 2004 financial year. The detailed 2003 interim report will be available in the internet as from 28 August 2003 under www.mediclin.de. For more information: MediClin AG Investor Relations Alexandra Mühr Wilhelm-Leuschner-Straße 9-11 60329 Frankfurt am Main Phone +49 (0) 69 25 60 02-13 E-Mail: alexandra.muehr@mediclin.de MediClin GmbH Public Relations Gabriele Eberle Okenstraße 27 77652 Offenburg Phone +49 (0) 7 81 4 88-1 80 E-Mail: gabriele.eberle@mediclin.de ——————————————————————————– WKN: 659510; ISIN: DE0006595101; Index: SDAX Listed: Amtlicher Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover und Stuttgart 140830 Aug 03