Wolford AG — Earnings Release 2001

Dec 11, 2001

News Details

Ad-hoc | 11 December 2001 09:00

Wolford AG english

Press Release of Wolford AG Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Results First Half of Financial Year 2001/2002 of Wolford AG. In the first 4 months (1 May to 31 Aug 2001) of the present financial year 2001/02, turnover growth was on target at a two-figure rate. Unforeseen events in Sept and Oct – when turnover normally peaks for the year – reversed the growth trend. Thus, Wolford closed the first half of the year (1 May to 31 Oct 2001) with turnover down EUR 2.80 mio on one year earlier. The earnings trend, which in the first quarter (1 May to 31 July 2001) showed the targeted improvement with a gain of 14% in EBIT and 35% in EBITDA, followed turnover down in the second quarter. Achieving the improvement in earnings was contingent on double-digit turnover growth backed up by rigorous cost management. In the first 6 months of the financial year, EBITDA declined by EUR 6.2 mio to EUR 2.0 mio. The negative operating result of EUR -2.5 mio includes restructuring costs for Asia (EUR 0.8 mio) and expenses for translation differences in accordance with the IAS closing rate method (EUR 0.9 mio). EBT (result on ordinary activities) was EUR -5.2 mio. Cash earnings for the first half of the year were a positive EUR 0.7 mio. Immediate action taken: intensified cost management with a focus on fixed cost reduction; tightening of all organisational structures. Boutiques in the UK and Far East that are not sufficiently profitable are being closed. In capital investment the emphasis is being placed on technology, research and development for fashion-independent and non-seasonal novelties along the lines of the Logic and Long Distance product lines. Capital expenditure will thus be concentrated on core business. The turnover figures for Nov point to a small recovery in the European core markets in the second half of the year (1 Nov. 2001 – 30 April 2002). The new markets, notably the USA, Japan, Far East, will remain below target. In absence of two-figure turnover growth, the earnings improvement will be marginal. Nevertheless, in light of the effect of cost control and process improvements, we expect a lasting positive trend in earnings beginning in the 2002/03 financial year. end of ad-hoc-announcement (c)DGAP 11.12.2001 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: IAS figures for the first half of 2001/02 in EUR million: P&L: Turnover 66.67; EBITDA 1.97; EBIT -2.54; EBIT margin in % -3.70; Financial result -2.65; EBT -5.19; Net loss for the period -4.03; Net loss per share (EUR) -0.85. Balance sheet: Total assets 176.58; Non-current assets 86.36; Shareholders’ equity 62.22; Equity in % of total assets 35.24. Cash flow and capex: Cash earnings 0.74; Net debt 57.84; Capital expenditure 5.68. Staff numbers incl. apprentices: Full-time staff 1,880; Total individuals 2,010. IAS figures for the first half of 2000/01 in EUR million: P&L: Turnover 69.47; EBITDA 8.15; EBIT 4.14; EBIT margin in % 5.64; Financial result -1.13; EBT 3.02; Net loss for the period 2.43; Net loss per share (EUR) 0.51. Balance sheet: Total assets 205.78; Non-current assets 82.49; Shareholders’ equity 65.27; Equity in % of total assets 31.70. Cash flow and capex: Cash earnings 6.62; Net debt 48.25; Capital expenditure 9.16. Staff numbers incl. apprentices: Full-time staff 1,911; Total individuals 2,031. Financial calendar: 7 February 2002 Turnover third quarter 2001/02; 13 March 2002 Full results third quarter 2001/02; 7 May 2002 Turnover financial year 2001/02; 16 July 2002 Press conference on financial year 2001/02; 3 September 2002 Annual General Meeting in Bregenz ——————————————————————————– WKN: 083400; ISIN: AT0000834007; Index: ATX Listed: Amtlicher Handel in Wien; Freiverkehr in Berlin, Frankfurt, Hamburg, München und Stuttgart 110900 Dez 01