RATIONAL AG — Earnings Release 2002

Mar 26, 2003

News Details

Ad-hoc | 26 March 2003 08:00

Rational AG english

Rational AG: Record earnings and growth against the sector trend Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Landsberg am Lech, March 26, 2003. RATIONAL AG (WKN 701080), manufacturer of combi-steamers for the professional kitchen, successfully continued its profitable growth trend in fiscal 2002. Sales in the year under review rose by 6.0 percent from EUR 167.3m to EUR 177.3m and thus fell short of the expected figure of 10 percent. The appreciable deterioration in economic conditions over the course of the year led the company to focus on consolidation and efficiency gains rather than further substantial investment in international expansion. RATIONAL nevertheless managed to expand its share of the world market again, from 46 to 47 percent, and has thus once more achieved better growth compared to the sector. Strategic gains in efficiency and quality in all corporate divisions and consistent cost management guided RATIONAL to record earnings. EBIT (earnings before interest and tax) jumped by 19.5 percent from EUR 31.9m to EUR 38.2m to yield a gross profit-sales ratio of 21.6 percent for 2002 up from 19.0 percent in 2001. Net income after tax was up from EUR 20.8m to EUR 26.6m, a rise of 27.9 percent, thanks to the relatively low taxation ratio. Profit per share reached EUR 2.34 from EUR 1.83 last year. Cash flow from operating activities leapt 62 percent from EUR 19.7m to EUR 31.9m. The company intends, in light of these performance figures, to propose to the general meeting of shareholders the distribution of a cash dividend of EUR 1.30 per share, a 30 percent increase on last year’s dividend of EUR 1.00. The company anticipates that the economic situation will remain difficult in 2003 and intends to continue with the course of consolidation already adopted. Management does, however, expect to be able to achieve further significant increases in both sales and profits in 2003. This optimism is founded on two factors in particular: some 80 percent of the world market potential remains untapped and the share of sales revenue contributed by the foreign subsidiaries continues to grow (52.5 percent in 2002). With a growth rate of 13.1 percent the foreign subsidiaries contributed disproportionately to total group growth already in 2002. Contact: RATIONAL Aktiengesellschaft Erich Baumgärtner Tel. +49 (0)8191 327 420, Fax +49 (0)8191 327 272 E-mail: e.baumgaertner@rational-online.de end of ad-hoc-announcement (c)DGAP 26.03.2003 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: Background: RATIONAL AG now earns 81 percent of its sales revenue outside Germany. Apparently undaunted by the parlous state of the global economy, the foreign subsidiaries grew by 13.1 percent in 2002. Progress remains good in the US and Japanese markets, which are central to the company’s medium-term growth prospects: sales in local currency were up by 13 percent (15 percent last year) in the USA and by an impressive 20 percent (15 percent last year) in Japan. The company continues to raise its profile in the key emerging markets of China and the Russian Federation too and a breakthrough has now been made in China with Kentucky Fried Chicken. The rising demand for RATIONAL products stems from the substantial rationalization effect delivered by the company’s technology, which pays for itself within four to twelve months. Despite all of RATIONAL’s many sales successes, no more than about 20 percent of the 2.5 million potential customers around the world already have a combi-steamer. Approximately half of these, in turn, are RATIONAL customers. Some 80 percent of potential customers still cook using conventional methods: finding ever more effective and efficient ways of drawing them to combi-steamer technology is the real challenge for the company. In millions of euros 2002…2001 Sales revenue 177.3…167.3 EBIT 38.2…31.9 Group Earnings 26.6…20.8 EPS (euros) 2.34…1.83 Equity ratio (%) 69.2…63.9 ——————————————————————————– WKN: 701080; ISIN: DE0007010803; Index: Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf und Stuttgart 260800 Mär 03