euro adhoc: Neschen AG
Earnings
Neschen achieves planned
quarterly result
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
02.05.2005
The Neschen Group achieved a somewhat better than planned turnover and result for the first quarter 2005. The turnover lay by Euro 36.0M, slightly higher than the planned Euro 35.8M. After adjustments, due to consolidation parameter changes resulting from sales of fringe activities in 2004, an organic growth of approx. 4% was achieved.
The gross margin is also at plan level and confirms that the increase in raw material prices, which had a strong negative effect on the 2004 result, have been, in part, successfully passed along to the market.
The loss before taxes in the first quarter amounted to Euro 0.5M, less than the expected 0.7M. The EBIT lay by 1.7%, significantly over the previous years EBIT of of minus 7.0%.
Neschen is in the midst of an extensive restructuring programme in all substantial locations. The decisive measure at the headquarters in Bückeburg, the reduction of personell by 20%, was carried out in March according to plan. The measures in subsidiaries abroad will be completed by the end of this year. This represents a cost reduction of Euro 5.0M for the Group. The Neschen Group expects an operating result of at least Euro 1.0M for the current year (before restructuring costs). An operative result of Euro 0.5M was achieved in the first quarter. The operative EBIT was 5.0% and the operative EBITDA was 8.9%.
The company sees the first quarter result as a confirmation of the restructuring measures. Neschen is now seeing an increased demand in both the domestic and foreign markets after a weak market development the last two years in the graphics industry.
end of announcement euro adhoc 02.05.2005 14:15:43
Further inquiry note:
Jan Marzinowski
Tel.: +49 (0) 5722 207 153
E-Mail: j.marzinowski@neschen.de
Branche: Process Industries
ISIN: DE0005021307
WKN: 502130
Index: General Standard, CDAX
Börsen: Berliner Wertpapierbörse / free trade
Hamburger Wertpapierbörse / free trade
Baden-Württembergische Wertpapierbörse / free trade
Börse Düsseldorf / free trade
Bremer Wertpapierbörse (BWB) / free trade
Frankfurter Wertpapierbörse / official dealing
Niedersächsische Börse zu Hannover / official dealing