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Westag AG Interim / Quarterly Report 2005
486_10-q_2005-05-24_8bfee017-377d-430b-82db-6d5fa142df2e.pdf
Interim / Quarterly Report
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Quarterly Report
1st quarter 2005
Westag & Getalit AG
Sales
The continued decline in German construction activity accelerated in early 2005. The latest figures published by the Federal Statistical Office for the building construction sector show an alarming 25.6% decline in incoming orders (January to February 2005). At € 40.7 million, Westag & Getalit AG first-quarter sales were down 4.1% on the previous year's € 42.4 million.
The weak domestic business was partly offset by exports, which increased by an impressive 12.1% to € 7.6 million; the export share rose to 18.6%.
Divisions
| Sales revenue (in € '000) | Jan. 01 - Mar. 31, 2005 | Jan. 01 - Mar. 31, 2004 | Change (in %) |
|---|---|---|---|
| Plywood/Formwork | 5,922 | 6,385 | - 7.2 |
| Doors/Frames | 16,742 | 17,117 | - 2.2 |
| Laminates/Elements | 17,157 | 18,009 | - 4.7 |
Demand for supersize formwork for site-mixed concrete and pre-cast concrete works declined noticeably. Sales in the Plywood/Formwork Division were down by 7.2%. The decline in domestic sales was partly offset by an increase in exports.
Sales in the Doors/Frames Division decreased by a moderate 2.2%. A strong increase in sales of our new white enamelled doors largely offset the effects of the weak economy.
The Laminates/Elements Division reported a 4.7% decline in sales. A stronger drop was prevented by increased sales of GetaCore® acrylic based solid surface worktops.
Result
The trend towards higher purchase prices of our main raw materials, which emerged in the last quarter of 2004, accelerated as expected. As a result, and due to lower sales, earnings before income taxes declined to € 809 thousand (2004: € 1,882 thousand). DVFA/SG earnings per share were down to € 0.09 (2004: € 0.20).
| Profit data (in € '000) | Jan. 01 - Mar. 31, 2005 | Jan. 01 - Mar. 31, 2004 | Change (in %) |
|---|---|---|---|
| Result from ordinary activities | 654 | 1,775 | - 63.2 |
| Earnings before income taxes | 809 | 1,882 | - 57.0 |
| Net profit | 501 | 1,036 | - 51.6 |
| Net profit per share (in €) | 0.09 | 0.19 | - 52.6 |
| DVFA/SG earnings per share (in €) | 0.09 | 0.20 | - 55.0 |
Investments
Investments in an amount of € 11.3 million are planned for 2005. The development of a new surface material announced last year has been completed in the meantime. We are now implementing the investment project for the respective production technology. Other investments mainly include investments in replacements and rationalisation.
Employees
As of March 31, 2005, Westag & Getalit AG employed 1,213 people (previous year: 1,242). Due to lower capacity utilisation, personnel expenses as a percentage of sales climbed from $34.5%$ to $35.2%$.
| Workforce | Mar. 31, 2005 | Mar. 31, 2004 | Change (in %) |
|---|---|---|---|
| Number of employees | |||
| (incl. trainees/apprentices) | 1,213 | 1,242 | - 2.3 |
Outlook
We are currently seeing no signs in our industry that would give cause for optimism. The continued spending restraint on the part of consumers in Germany, our main output market, is weighing on our performance.
We have so far been unable to fully implement the price increases that would be required due to the higher commodity prices. Westag & Getalit AG’s results for the year 2005 will depend on the development of prices in our procurement and output markets and the development of our sales volumes. We see further growth potential mainly on the exports side as well as for our new product families, which already achieved measurable success in the first three months of the year.
From today’s point of view, Westag & Getalit AG’s result for the full year is expected to remain below the excellent level of the previous year. We are nevertheless confident that we will generate reasonable earnings even in these difficult times.
Rheda-Wiedenbrück, May 2005
Westag & Getalit AG
The Management Board
Balance sheet
| (in €'000) | Mar. 31, 2005 | Mar. 31, 2004 |
|---|---|---|
| Intangible assets | 442 | 259 |
| Tangible assets | 40,815 | 42,249 |
| Financial assets | 52 | 103 |
| Non-current assets | 41,309 | 42,611 |
| Inventories | 29,848 | 27,189 |
| Debtors and other assets | 19,236 | 18,021 |
| Cash at banks or in hand | 19,658 | 20,779 |
| Current assets | 68,742 | 65,989 |
| Deferred tax assets | 0 | 0 |
| Total assets | 110,051 | 108,600 |
| Called-up share Capital | 14,643 | 14,643 |
| Capital reserve | 24,345 | 24,345 |
| Revenue reserves | 29,496 | 29,480 |
| Net profit attributable to shareholders | 4,599 | 4,098 |
| Total equity | 73,083 | 72,566 |
| Non-current liabilities | 14,649 | 14,508 |
| Current liabilities | 22,239 | 21,457 |
| Deferred tax liabilities | 80 | 69 |
| Total equity and liabilities | 110,051 | 108,600 |
Income statement on a quarterly basis
| (in € '000) | Jan. 01 - Mar. 31, 2005 | Jan. 01 - Mar. 31, 2004 |
|---|---|---|
| Sales | 40,696 | 42,442 |
| In/decrease in inventories | 1,424 | 447 |
| Own work capitalised | 12 | 33 |
| Total operating performance | 42,132 | 42,922 |
| Other operating income | 459 | 354 |
| Cost of materials | 20,318 | 19,321 |
| Personnel expenses | 14,813 | 14,806 |
| Depreciation and amortisation | 2,194 | 2,601 |
| Other operating expenses | 4,572 | 4,734 |
| Other taxes | 40 | 39 |
| Operating result | 654 | 1,775 |
| Financial result | 155 | 107 |
| Investment result | 0 | 0 |
| Extraordinary items | 0 | 0 |
| Profit before income taxes | 809 | 1,882 |
| Income taxes | 308 | 846 |
| Net profit | 501 | 1,036 |
| DVFA/SG earnings per share | ||
| (undiluted and diluted) | 0.09 | 0.20 |
| Number of shares | ||
| (undiluted and diluted) | 5,720,000 | 5,720,000 |
Cash flow statement
| (in €'000) | Jan. 01 - Mar. 31, 2005 | Jan. 01 - Mar. 31, 2004 |
|---|---|---|
| Operating result/EBIT | 654 | 1,775 |
| Income tax payments | - 406 | - 74 |
| Depreciation and amortisation | 2,195 | 2,601 |
| Result from asset retirements | - 4 | - 29 |
| Change in current assets | - 973 | - 6,108 |
| Change in liabilities | 1,151 | 2,512 |
| Cash flow from operating activities | 2,617 | 677 |
| Investments in fixed and financial assets | - 964 | - 861 |
| Change in financial assets | 51 | 11 |
| Income from fixed asset retirements | 25 | 29 |
| Cash flow from investment activities | - 888 | - 821 |
| Interest income | 304 | 220 |
| Interest expenses | 0 | 0 |
| Repayment of non-current financial liabilities | 0 | - 154 |
| Acquisition/sale of own shares | - 48 | 0 |
| Dividend payments | 0 | 0 |
| Cash flow from financing activities | 256 | 66 |
| Change in liquid funds | 1,985 | - 78 |
| Liquid funds as of Jan. 01 | 8,436 | 8,122 |
| Liquid funds as of Mar. 31 | 10,421 | 8,044 |
Segment report for the first three months 2005
| Segment (in € '000) | Jan. 01 - Mar. 31, 2005 | Jan. 01 - Mar. 31, 2004 | Change (in %) |
|---|---|---|---|
| Germany | |||
| Sales | 33,126 | 35,641 | - 7.1 |
| Earnings before income taxes | 655 | 1,722 | - 62.0 |
| Export | |||
| Sales | 7,570 | 6,801 | 11.3 |
| Earnings before income taxes | 154 | 160 | - 4.7 |
| Full Company | |||
| Sales | 40,696 | 42,442 | - 4.1 |
| Earnings before income taxes | 809 | 1,882 | - 57.0 |
Statement of changes in equity
| in € '000 | Subscribed capital | Capital reserve | Revenue reserve | Net profit for the year | Total |
|---|---|---|---|---|---|
| As of Jan. 01, 2004 | 14,643 | 24,345 | 26,723 | 2,577 | 68,288 |
| Transfer to other reserve | 65 | ||||
| Change in own shares | 0 | ||||
| Dividend | 0 | ||||
| Net profit | 1,036 | 1,036 | |||
| As of Mar. 31, 2004 | 14,643 | 24,345 | 26,788 | 3,613 | 69,389 |
| As of Jan. 01, 2005 | 14,643 | 24,345 | 29,480 | 4,098 | 75,566 |
| Transfer to other reserve | 64 | 64 | |||
| Change in own shares | -48 | -48 | |||
| Dividend | 0 | ||||
| Net profit | 501 | 501 | |||
| As of Mar. 31, 2005 | 14,643 | 24,345 | 29,496 | 4,599 | 73,083 |
Notes on the report for the three-month period ended March 31, 2005
1. Accounting principles
The interim report of Westag & Getalit AG for the three-month period ended March 31, 2005 is the first to be prepared to International Financial Reporting Standards (IFRS). The previous year's figures have been adjusted accordingly. All standards applicable as of the closing date were applied in the form relevant for Westag & Getalit AG.
2. Cash flow statement
The cash flows in the cash flow statement were determined using the indirect method.
3. Liquid funds
Liquid funds shown in the balance sheet include securities in an amount of € 9,237 thousand (Dec. 31, 2004: € 12,343 thousand).
4. Composition of subscribed capital
The subscribed capital of € 14,643 thousand is composed of 2,860,000 no-par ordinary shares and 2,860,000 non-voting no-par preference shares with a total value of € 7,321,600.
5. Purchase commitments
As of March 31, 2005, purchase commitments amounted to € 4,642 thousand, compared to € 1,645 thousand in the previous year.
6. Management changes
As announced in the ad-hoc press release dated March 31, 2005, Jan Trommershausen, Director Central Division, will leave the company by mutual agreement on June 30, 2005.
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Financial schedule 2005/Current dates*
Press Release Annual Financial Statements 2004 March 17, 2005
Annual Press Briefing in Düsseldorf Press Release Report on the first three months of 2005 May 11, 2005
Annual General Meeting (AGM) of Shareholders in Rheda-Wiedenbrück Press Release Interim report on the first six months of 2005 August 9, 2005
DVFA Event/Analysts' Conference in Frankfurt August 29-31, 2005
Press Release Report on the first nine months of 2005 November 8, 2005
- The complete 2005 financial calendar is available on the Internet at: www.westag-getalit.de/finanzkalender
Westag & Getalit AG Westag & Getalit AG • Postfach 2629 • 33375 Rheda-Wiedenbrück • Germany Tel. +49 (0) 5242/17-0 • Fax +49 (0) 5242/17-75000 www.westag-getalit.de • E-mail: [email protected]