EANS-News: TA Triumph-Adler AG
TA Triumph-Adler 2008: Market drop,
extraordinary factors result in sales and earnings decrease
Nürnberg (euro adhoc) -
Further reduction of finance liabilities, stable operating cash flow, good cash position
Accounting adjustments following full consolidation by Kyocera Mita Corporation
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balance
Nuremberg, 31 March 2009 - In its 2008 financial year TA Triumph-Adler generated Group revenues of EUR358.1 million a decrease by 7.2 % as compared with sales of EUR386.1 million in the previous year. Earnings before tax reached EUR7.3 million following EUR9.3 million in the previous year, just missing the targets as revised in September, 2008. Pre-tax return on sales dropped from 2.4% to 2.0% partly due to extraordinary charges.
At EUR14.4 million, cash flow was once again significantly positive in the 2008 financial year. Cash flow of EUR16.1 million was achieved in the previous year. Overall, the Group generated cash flow from operating activities of EUR20.3 million in 2008, compared with EUR6.0 million in 2007. The cash position rose 5.4% compared with the previous year's balance sheet date, when cash and cash equivalents amounted to EUR27.4 million. The cash position amounted to EUR29.0 million on December 31, 2008.
Not to the least extent, this decline reflects the general market trend. However, it is also partly caused by the exceptional events within the Group, in particular due to the detection of criminal intrigues at TA Triumph-Adler Norddeutschland. This is being explained in the Group Management Report published today. In addition, the projected acquisition activities were decelerated sharply in view of the overall business development.
Accounting adjustments, retirement of deferred taxes following takeover by Kyocera-Mita
Previous year´s figures were adjusted. In the course of the takeover by Kyocera Mita Corporation TA Triumph-Adler Group will be fully consolidated by its parent company, which employs US GAAP accounting standards. Particularly in order to minimize the expense related to the transition from IFRS to US GAAP, the accounting treatment of certain leases was adjusted retrospectively in the IFRS financial statements. As has been previously reported, the tax loss carry forwards of TA Triumph-Adler AG and its subsidiaries are no longer tax deductible also due to the takeover. The deferred tax assets based on those tax loss carry forwards had to be written down in the amount of over EUR20 million. This gives rise to an annual net loss before minority interests of EUR16.8 million. In the 2007 consolidated financial statements, a net profit for the year of EUR37.9 million had been reported due to a write-up to deferred tax assets.
Parent company strengthens equity ratio, still negative Group equity
Net income for the year of EUR3.6 million was generated at TA Triumph-Adler Aktiengesellschaft, the Group parent company, which was transferred to the revenue reserves. Equity rose correspondingly. It amounted to EUR97.4 million as of December 31, 2008, 3.8 % higher than at the previous year's balance sheet date. The equity ratio also increased, and amounted to 29.9 % as of December 31, 2008 (December 31, 2007: 29.6 %).
By contrast, equity within the overall Group is negative. The consolidated equity of TA Triumph-Adler AG totaled minus EUR71.0 million as of December 31, 2008 following minus EUR53.5 million as of December 31, 2007. The matter is of a purely accounting nature, and has no legal or liquidity consequences, or effects that might jeopardize the company as a going concern. After the retirement of deferred tax assets the accumulated loss rose from EUR142.6 million to EUR159.4 million.
Both non-current and current finance debt was repaid on schedule. Finance debt still totaling EUR40.9 million (December 31, 2007: EUR47.4 million) includes instruments relating to the new financing, including, in particular, the EUR17.5 million syndicated loan (December 31, 2007: EUR22.5 million), and two borrower's note loans. We cut net debt (finance debt minus cash and cash equivalents) from EUR19.9 million to EUR11.9 million.
Group does not relinquish its medium-term targets
TA Triumph-Adler is not issuing revenue and earnings forecasts for the 2009 financial year given the high degree of uncertainty relating to the economic environment, and the potential to implement its plans. Even in the difficult economic environment, the Group sticks to implementing the "Aufbruch 2010!" program, strengthening sales, and improving gross margins at the regional companies.
Jointly with Kyocera Mita the Group ventures to develop and implement a strategy to establish the direct sales business model throughout Europe. In the current financial year, however, management does not expect any significant effects from related activities.
Anticipating a return to a stable business environment in 2010 TA Triumph-Adler is aiming for Group revenue of EUR400 million to EUR440 million for 2010, with an EBT margin of 5%. This target does not reflect potential effects arising from a European strategy.
Group and parent company financial statements were made available to the public on the www.triumph-adler.de website as well as on the www.deutsch-boerse.com portal on March 31, 2009.
For further information please contact: TA Triumph-Adler AG Südwestpark 23 90449 Nuremberg Germany Dr. Joachim Fleing Telefon: +49 / 911 / 68 98 - 499 Fax: +49 / 911 / 68 98 - 200 ir@ta.ag www.triumph-adler.de
end of announcement euro adhoc
Further inquiry note:
Sonja Blättchen
Telefon: +49 (0)911 6898-104
E-Mail: sonja.blaettchen@triumph-adler.net
Branche: Semiconductors & active components
ISIN: DE0007495004
WKN: 749500
Index: CDAX, Classic All Share, Prime All Share
Börsen: Börse Frankfurt / regulated dealing/prime standard
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