Turbon AG — Earnings Release 2004

Apr 5, 2005

News Details

Ad-hoc | 5 April 2005 08:37

Turbon AG – Shareholders’ Information

Ad hoc announcement §15 WpHG Shareholders’ Information Turbon AG – Shareholders’ Information Ad hoc announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. —————————————————————————— Turbon AG – Shareholders’ Information Consolidated sales in the 2004 fiscal year were Euro 122.8 million compared to Euro 133.6 million in the previous year. Sales of Euro 91.5 million (previous year: Euro 97.4 million) were made in 2004 with non-impact products. The decline in sales in this area is mainly due to the effects of exchange rates as well as lower sales of ink-jet products. Sales in the core area of laser cartridges were able to be maintained on the basis of local currencies in spite of a significant price decline. Sales with impact products were Euro 28.0 million (previous year: Euro 32.7 million). Euro 3.3 million (previous year: Euro 3.5 million) were accounted for by sales of other products. As a consequence of declining sales and pressure on prices, the earnings are also lower than those for the previous year. The individual figures: Earnings before interest and taxes were Euro 4.2 million compared to Euro 6.7 million in the previous year. Income from ordinary operations was around Euro 3.3 million compared to Euro 5.7 million in the previous year. Consolidated net income was around Euro 2.3 million after being Euro 4.0 million in the previous year. This resulted in earnings per share of Euro 0.63 (previous year: Euro 1.12). Reflected in the consolidated net income for 2004 is an accrual for contingent liabilities of our Belgium investment Kores Nordic Belgium (“KNB”) in the amount of Euro 0.5 million and an accrual for legal and consulting fees in the consolidated accounts of the Turbon Group in the amount of Euro 0.1 million. The reason for the accruals is a claim of the Belgium tax authorities against KNB in connection with value-added tax receivables unpaid by former suppliers of KNB. While we experienced a strong first quarter in terms of both sales and earnings in 2004 compared to the year as a whole, 2005 is showing the opposite trend. Consolidated sales for the first quarter of 2005 will be lower by app. Euro 4.0 million than those of the previous year. For the second quarter of 2005, we expect sales at the level of the previous year and a significant increase in sales in the third and fourth quarter of 2005. For the year 2005 as a whole we anticipate consolidated sales of Euro 125.0 million. Regarding earnings figures we can draw a picture similar to that of sales. The greater part of the aggregate results for 2004 was earned in the first quarter of 2004. As a consequence of the anticipated sales by quarter in 2005, we expect that the earnings fluctuations between the quarters will be less pronounced in 2005. For the year 2005 as a whole, we are expecting consolidated net income to rise to more than Euro 3.0 million. We were contacted by the North American company Adsero Corp., which has informed us, that it plans to make to all Turbon Shareholders, after completion of a due diligence still to be performed, a purchase offer of US Dollar 13.50 (app. Euro 10.50 at the current exchange rate, April 05, 2005, 07:50) per share. According to the received information it’s planned to offer US Dollar 11.00 per share in cash and the equivalent of US Dollar 2.50 per share in Adsero shares. Turbon Executive Board has decided to make a recommendation to Turbon shareholders after a meeting with representatives of Adsero has taken place and a formal takeover bid has been received. The full Shareholders’ Information can be requested from Turbon AG (Secretariat, Ruhrdeich 10, 45525 Hattingen). You will also find the information on our website at http://www.turbon.de . Hattingen, April 5, 2005 Turbon AG Turbon AG Ruhrdeich 10 45525 Hattingen Deutschland ISIN: DE0007504508 WKN: 750450 Listed: Geregelter Markt in Düsseldorf und Frankfurt (General Standard); Freiverkehr in Berlin-Bremen, Hamburg und Stuttgart End of ad hoc announcement (c)DGAP 05.04.2005 050837 Apr 05