K&M Möbel AG
K & M Möbel AG english
Ad-hoc-announcement transmitted by DGAP.
The issuer is solely responsible for the content of this announcement.
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In the first half of 2001, K&M Möbel AG, Kirchlengern, has achieved earnings
before interest and taxes (EBIT) of -Euro 2.3 million (previous year: Euro 6.5
million) due to a decline of Group sales to Euro 120.9 million (previous year:
Euro 130.6 million). In both segments of the Group – assembled and flat-packed
furniture – business volume declined, influenced especially by the weak
situation of the domestic market. After the unsatisfactory development, K&M is
preparing for a comprehensive reorganisation of the Group-wide production,
logistics and administration with the goal of a long-lasting improvement in the
cost structure and competitiveness. The Supervisory Board approved the
restructuring concept developed by the Board of Management with the assistance
of external advisors, which is to be implemented by the end of 2003.
The measures are based on four elements. To reduce the cost of materials, the
product portfolio will be rationalised and modernised through the application of
modular concepts and platform strategies. The combination and strengthening of
Group procurement management serves the same goal. The cost structure is to be
further improved by the out-sourcing of distribution, logistics and the
transportation fleet as well as the Group-wide aggregation of administrative
functions. The fourth element is the reduction of production sites via a
consolidation of production, commissioning or warehousing at separate sites.
In light of an unsatisfactory order position and declines in sales caused by
lower price and volume, changes in the number of employees are also unavoidable.
As part of the restructuring measures, a reduction of the workforce by about
500 employees from the current level of 1,365 is planned within the next two
years; it is anticipated, however, that many of them will continue to be
employed with the use of out-sourcing models. The restructuring will again weigh
on the earnings for the years 2001 and 2002, but it will lead to significantly
positive effects on earnings by 2003 that will far outweigh the one-off costs.
K&M expects a loss of Euro 9.3 million for 2001, before restructuring provisions
of some Euro 6 million. The return to profitability is planned for 2003. A
comprehensive report will be published this week.
Kirchlengern, August 28, 2001. The Board of Management
end of ad-hoc-announcement (c)DGAP 28.08.2001
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WKN: 630300; Index: SDax
Listed: Amtlicher Handel in Düsseldorf,
Frankfurt (SMAX); Freiverkehr in Berlin, Hamburg, Stuttgart
280846 Aug 01
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