Earnings Release • Jan 28, 2008
Earnings Release
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Corporate | 28 January 2008 08:30
STEICO AG: Preliminary figures for fiscal year 2007
STEICO Aktiengesellschaft / Preliminary Results
Release of a Corporate News, transmitted by DGAP - a company of EquityStory
AG.
The issuer / publisher is solely responsible for the content of this announcement.
Feldkirchen (Munich) / January 28, 2008 – STEICO AG, a company listed in
Frankfurt Stock Exchange's Entry Standard, recorded revenues totaling €
97.2 million in fiscal year 2007 according to preliminary calculations
(previous year: € 86.1 million). This constitutes an increase of € 11.1
million or 12.9%. Despite soaring sales, spending for new products
(I-Joists, hemp) impacted earnings at STEICO, which specializes in
ecological building materials. The Group recorded EBITDA of € 13.2 million
last fiscal year after € 14.3 million in 2006. According to preliminary
figures, EBIT fell from € 9.0 million to € 6.5 million. As of December 31,
2007, the company recorded earnings from ordinary activities of € 5.4
million (previous year: € 7.8 million). The preliminary equity ratio as of
December 31 was 73.5% (previous year: 31.9%).
STEICO's business with wood-fiber insulating materials enjoyed
extraordinarily strong growth. The company leads the European market in
this segment. However, the fire at a finished goods warehouse and the
downtime resulting from extension work at the Polish facility in Czarnków
impacted revenues and earnings. In addition, there was predatory
competition in the I-Joist segment, primarily from a US competitor. In
January 2008 this competitor announced its full withdrawal from the
European market.
The company is looking to the future with optimism. STEICO believes that
the market for insulating materials made from renewable resources will
enjoy highly positive growth, and the company will continue to focus on
optimizing its lead times. The European I-Joist market is undergoing a
major transition after the withdrawal of the US competitor. In view of the
resulting reduction in capacity, the STEICO Group is forecasting further
positive effects for this high-growth market.
The investment projects implemented in 2007 will only fully bear fruit in
fiscal year 2008. These include expanding the Czarnków facility to increase
production capacity as well as investments in a biomass power plant. The
new products – I-Joists, hemp insulation materials, hemp fibers and hemp
shive boards – will make a larger contribution to the STEICO Group's
revenues and earnings growth in future. In addition, the STEICO Group is
currently involved in negotiations to acquire a company with the aim of
increasing capacity for its wood-fiber insulating materials.
The Group has published the following forecast for the current fiscal year
and 2009 (in € million):
Revenues 2008 2009
Wood-fiber insulating materials 76.0 95.0
NFB 30.0 30.0
I-Joists 12.0 20.0
Hemp-fiber insulating materials 3.0 6.0
Hemp shive boards 0.0 5.0
Wood trade 4.0 4.0
Total revenues 125.0 160.0
EBITDA 19.0 30.0
EBIT 11.0 20.0
Earnings from ordinary activities 10.0 20.0
Consolidated net income 7.0 14.0
This forecast does not take the impact of potential acquisitions into
account.
The STEICO Group will report on its final figures for fiscal year 2007 in
the middle of May when it publishes its annual report.
Company profile:
The STEICO Group of companies develops, produces and sells ecological
construction products made of renewable materials. The company leads the
European market for wood-fiber insulation materials with a market share of
more than 35%. The company also enjoys top rankings for its highly
effective cost structure and its research and development activities, which
are located in Germany. The Group's new products 'Hemp insulation
materials' and 'I-joists' as construction elements for residential
construction mean that it has grown to become a system provider for
ecological construction products. The production of natural fiber boards
(NFB) as components for the I-joists rounds off STEICO's vertical
integration, which is unique within the industry. The Munich-based
company's products are successfully used in home building for floors,
walls, ceilings and roofs.
The STEICO Group plans to continue the sales and profits growth it has
enjoyed in the past few years thanks to its clear strategic orientation.
The strategic plans focus on existing and new products, including for new
customers. The funds from the IPO in June 2007 have enabled the company to
further bolster the Group's solid foundations and also to accelerate its
growth. STEICO AG's success is set to continue – right on target.
Contact:
Andreas Schulze
STEICO Aktiengesellschaft
Hans-Riedl-Strasse 21
85622 Feldkirchen
Fon: +49-(0)89-99 15 51-48
Fax: +49-(0)89-99 15 51-97
Email: [email protected]
www.steico.com
Language: English
Issuer: STEICO Aktiengesellschaft
Hans-Riedl-Str. 21
85622 Feldkirchen
Deutschland
Phone: +49 - (0)89 - 99 15 51 - 0
Fax: +49 - (0)89 - 99 15 51 - 99
E-mail: [email protected]
Internet: http://www.steico.com
ISIN: DE000A0LR936
WKN: A0LR93
Listed: Freiverkehr in Berlin, Düsseldorf, München; Entry Standard in
Frankfurt
End of News DGAP News-Service
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