PVA TePla AG — Earnings Release 2002

Aug 22, 2002

News Details

Ad-hoc | 22 August 2002 08:29

TePla AG english

Tepla AG: Semiconductor weakness affects results / PVA merger opens new doors Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Tepla AG: Semiconductor weakness affects results / PVA merger opens new doors Feldkirchen by Munich, August, 22, 2002: for the first six months of the current fiscal year, Tepla AG (securities code 746 100), a manufacturer of plasma systems for the semiconductor industry and industrial surfaces treatments, generated EUR 4.5 million in sales compared to EUR 12.0 million during the same period of last year. The primary reason for the decline in sales was the on- going recession in the semi-conductor industry. The perceived recovery at the end of the first quarter was not sustainable. Due to low demand and under- utilization of production capacities, the operating result (EBIT) was EUR -3.2 million (previous year: EUR -1.7 million). Capitalization of deferred tax assets, as required by US GAAP (United States Generally Accepted Accounting Principles) resulted in a net loss of EUR -2.2 million (previous year: EUR -2.1 million), the result per share was EUR -0,58 compared to EUR -0,66 of last year. In July of this year, the situation improved markedly. Both sales and bookings of Tepla AG were again in line with the budgetary planning for the month. In view of general uncertainties about the economy, we can make no prognosis, but the management is optimistic. The planned merger with PVA Group, a successful manufacturer of high-temperature vacuum systems, is very promising. Both companies use similar technologies, pursue the same strategy and have complementary regional markets. The synergies resulting from the merger will strengthen sales and revenues of the new company that is to be named PVA Tepla. The merger, subject to the consent of the extraordinary shareholders’ meeting on August, 28, should take retroactive effect to December 31st, 2001 and will have an impact on the company’s sales and results of the business year 2002. The management aims to forecast sales and results of the new company in autumn 2002. Contact Peter Banholzer (IR-Manager), phone: +49 89 90503-106, e-Mail: peter.banholzer@tepla.com end of ad-hoc-announcement (c)DGAP 22.08.2002 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: TePla is convinced of the market potential of plasma technology and will pursue its projects for the future These projects can be expedited by the merger with a strong partner like PVA Group, that matches saliently with TePla AG. Both companies have been firmly established in the market for decades as suppliers to industrial manufacturers of non-polluting treatment of high-quality materials. The applied technologies are similar: either the surfaces of materials, or the entire material itself is treated in a vacuum chamber so that their physical properties change according to the requirements of the application. For these purposes, PVA applies high temperatures under vacuum or high pressure conditions to treat the whole component and TePla uses plasma (ionised gas) to treat the surface. The regional focal points of both companies match very well: PVA Group is firmly established in the European market, while TePla is well established in the US through the acquisition of MetroLine (now TePla America). Because the new partner has of a broad customer base in nearly all European countries, TePla AG will be able to accelerate market penetration of industrial plasma applications. At the same time, the combined company PVA TePla AG will reduce the dependence of its earnings on the cyclical ups and downs of the semi-conductor sector thanks to the broader diversification of their product portfolio. The concentrated power of distribution enables the new company to enter easily into new markets like photovoltaic sector in which both companies are already operating successfully. The foreseen synergy expected through the merger should reduce R&D costs, manufacturing expenses and distribution outlays, and at the same time should strengthen sales and revenues. New technologies of vacuum systems for all sectors will be developed on the basis of the combined know-how. The new company will position itself as one of the world’s leading suppliers of vacuum systems which serve to treat materials. The goal in the medium term is for the new PVA TePla AG to achieve a new position in the finance market. ——————————————————————————– WKN: 746100; ISIN: DE0007461006; Index: Listed: Neuer Markt in Frankfurt; Freiverkehr in Berlin, Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart 220829 Aug 02