euro adhoc: ESCADA AG
Quarterly or Semiannual Financial Statements
/ ESCADA third-quarter earnings impacted by one-time effects -
EUR 60 million in cost reductions decided (E)
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
Aschheim/Munich, September 26, 2003 - The ESCADA Groups third-quarter earnings performance was impacted by foreign currency effects and significant one-time charges. 3Q03 group sales of the luxury goods manufacturer amounted to EUR 139.6 million (3Q02: EUR 161,1 million), down 2.2% after adjustments for deconsolidation and foreign currency effects. Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to EUR 0.7 million (3Q02: EUR 7.6 million). This figure does not include one-time effects of minus EUR 11.1 million. Moreover, the devaluation of the non-consolidated interest in Féraud GmbH, at EUR 17.6 million, negatively impacted the financial result. The Group therefore is reporting negative net income after taxes for the third quarter of EUR -44.2 million (3Q02: EUR -2.8 million). Group sales for the first nine months of 2002/2003 were EUR 446.3 million (9M02: EUR 571.6 million), down 5.9% after adjustments for deconsolidation and foreign currency effects. EBITDA before one-time effects amounted to EUR 9.8 million (9M02: EUR 41.5 million). Net result amounted to EUR -51.5 million (9M02: EUR 3.5 million). The Board of Management has decided upon a far-reaching restructuring program intended to reduce structural costs in the Group by EUR 60 million, so that the Group can operate profitably over time at the current level of sales. About two-thirds of these cost reductions should be realized as early as 2003/2004. This restructuring will lead to one-time costs of EUR 25 to 30 million. For the fourth quarter, the Board of Management expects a clear improvement in the operating result and therefore a positive EBITDA of well into the double-digit millions. But the consolidated net income for the Group will be additionally reduced by the provisions for restructuring costs. This means that the consolidated net loss for the full year will exceed that for the first nine months of the year and will likely be a figure in the mid-range double-digit millions.
end of announcement euro adhoc 26.09.2003
Further inquiry note:
Viona Brandt
Tel.: +49 (0)89 9944 1336
E-Mail: viona.brandt@de.escada.com
Branche: Clothing
ISIN: DE0005692107
WKN: 569210
Index: CDAX, Classic All Share, Prime All Share, Prime Standard, SDAX
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