EANS-News: Villeroy & Boch AG Interim Report on the third quarter of 2012
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9-month report
Mettlach (euro adhoc) - Mettlach, 23 October 2012
Villeroy & Boch: Interim Report on the Third Quarter of 2012
Slight downturn in revenue due to difficult economic environment
* Revenue amounts to EUR 543.3 million after the third quarter, down slightly on
the previous year
* EBIT unchanged year-on-year at EUR 16.8 million
* Economic slowdown intensifies
Revenue down slightly on previous year
In the first three quarters of 2012, the Villeroy & Boch Group generated net
revenue of EUR 543.3 million after EUR 551.3 million in the same period of the
previous year.
Global economic development slowed significantly in the period under review. The
important euro zone markets for Villeroy & Boch are in a recession. Company and
consumer confidence has again deteriorated dramatically over recent months as a
result of the debt crisis and the continued fragile situation in the European
banking sector. Germany, which has seen largely positive development to date, is
also suffering from this loss of confidence.
Net revenue on the German market was down 3% year-on-year at EUR 147.6 million.
In the same period of the previous year, the Tableware Division achieved a
profit from a major order; no similar extraordinary project is planned for this
year. Adjusted for this extraordinary transaction, revenue in the third quarter
of 2012 was 2.5% higher than in the previous year.
Revenue outside Germany was down slightly year-on-year at EUR 395.7 million
(1%). This was due in particular to the lower revenue in the Bathroom and
Wellness Division in Mexico, with the sale of the plant in Saltillo also
representing Villeroy & Boch's targeted withdrawal from low-margin project
business.
Orders on hand also down slightly year-on-year
Orders on hand totalled EUR 50.4 million at 30 September 2012. Adjusted for an
extraordinary order in the Tableware Division in the previous year, orders on
hand declined by EUR 2.6 million compared with the previous year. 62% of the
orders on hand relate to the Bathroom and Wellness Division.
Development in the divisions
Operating earnings before interest and taxes (EBIT) for the first three quarters
of 2012 remained unchanged year-on-year at EUR 16.8 million. Earnings before
taxes (EBT) also remained at the prior-year level, amounting to EUR 8.6 million.
The lower margin due to the EUR 8 million fall in revenue compared with the same
period of the previous year was offset by an improved product and country mix of
the goods sold, positive exchange rate effects and systematic cost management.
The extraordinary income from the sale of the ceramic sanitary ware plant in
Saltillo, Mexico, in the first quarter is offset by expenses for the expansion
of activities in the growth markets of Russia and China.
Revenue in the Bathroom and Wellness Division remained unchanged year-on-year at
EUR 355.9 million in the first three quarters. There were differences in terms
of regional revenue development. The above-average revenue growth in Russia and
Germany continued in the third quarter, with year-on-year growth rates of +13%
and +7% respectively. Revenue also increased in the Czech Republic (+46%),
Norway (+20%), Thailand (+22%) and the United Kingdom (+12%). By contrast, there
was a fall in revenue in Mexico (-19%), the Netherlands (-19%) and Italy (-17%).
The Tableware Division generated revenue of EUR 187.4 million in the period from
January to September 2012, down 4% on the previous year. The year-on-year
decline in revenue of 11% in Germany in the first half of 2012 was almost fully
recovered. There was further revenue growth in Russia (+36%), Austria (+22%) and
the USA (+8%). Market development in Australia remains difficult (-7%).
Investments
The Villeroy & Boch Group made investments of EUR 15.8 million in the first nine
months of the 2012 financial year (previous year: EUR 16.8 million). Of this
figure, 61% related to the Bathroom and Wellness Division and 39% to the
Tableware Division.
Outlook for the 2012 financial year
Villeroy & Boch expects consolidated revenue for the 2012 financial year as a
whole to remain at the prior-year level. "Developments in the first three
quarters serve to reinforce our concerns about a further economic slowdown, and
we currently expect this development to continue," explains Villeroy & Boch CEO
Frank Göring, adding that general price rises will again be systematically
offset through cost discipline and improved productivity in the final quarter of
2012. Villeroy & Boch is forecasting an operating result of EUR 27.9 million or
just above this figure; this corresponds to the prior-year earnings level before
real estate gains.
Please read the complete Press Release with Consolidated figures in accordance
with IFRS in the PDF attachment.
The complete Interim Report as a PDF-file for download:
http://www.villeroy-boch.com/en/euo/home/the-company/investor-relations/reports.html
Attachments with Announcement:
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Further inquiry note:
Almut Kellermeyer
Head of Presse & Public Relations
Tel: (+49) 68 64 - 81 13 97
Fax: (+49) 68 64 - 81 26 92
Mail: presse@villeroy-boch.com
end of announcement euro adhoc
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company: Villeroy & Boch AG
Saaruferstraße
D-66693 Mettlach
phone: +49-(0)6864-81-0
FAX: +49-(0)6864-81-2692
mail: info@villeroy-boch.com
WWW: http://www.villeroy-boch.com
sector: Consumer Goods
ISIN: DE0007657231
indexes: CDAX, Classic All Share, Prime All Share
stockmarkets: free trade: Berlin, München, Düsseldorf, Stuttgart, regulated
dealing/prime standard: Frankfurt
language: English