Buderus AG
Buderus AG english
Preliminary results for fiscal year 2002
Corporate-news announcement sent by DGAP.
The sender is solely responsible for the contents of this announcement.
——————————————————————————–
Preliminary results for fiscal year 2002
·Sales and earnings in line with projections
·Profit margin of just under 9%
Wetzlar, Jan. 29, 2003 – The preliminary figures for FY 2002 today presented by
Buderus were in line with expectations. Sales amounted to Euro 1,860 million
(2001: Euro 1,928 million). The decline was primarily due to the general
purchasing and spending restraint in Germany, which was cushioned, yet not
entirely offset, by the gratifying development of the companys international
operations.
Earnings before income taxes reached Euro 162 million, compared to Euro 186
million in the previous year. The decline in earnings by 13 % is mainly
attributable to the volume-related decrease in Group sales as well as higher
prices of raw materials. Moreover, the company again invested heavily in
stronger growth. Such investment projects included the new brake disc plant in
the Castings Division, a new press line for closed-die forgings in the Special
Steel Products Division and in the Heating Products Division the migration to
SAP R/3 as well as new branches and acquisitions in the UK and Turkey. These up-
front investments temporarily weighed on the result. Overall, however, results
held steady on high level, with the profit margin before income taxes at just
under 9%.
At 9,575, staff numbers were down slightly on December 31, 2001. Adjusted for
the first-time consolidation of Feingusswerk Moers, staff numbers declined by 2%
as a result of the ongoing personnel adjustment measures.
Preparations for adoption of IAS / Extraordinary result of approx. Euro 120
million
Buderus 2003 annual accounts will be the first to be established to
International Accounting Standards (IAS). Adoption of IAS is required under
German law from 2005 at the latest. Moreover, § 308 (3) of the German Commercial
Code (HGB) was abolished with effect from January 1, 2003.
This abolition is negligible for the vast majority of German joint-stock
companies establishing their accounts to HGB. Not so for Buderus. So far Buderus
has used the right of election provided for in § 308 and applied the valuations
chosen in the subsidiaries individual accounts for tax reasons also in the
consolidated accounts. As a result of the abolition of § 308 (3) HGB, this
consistent valuation is no longer possible as of January 1, 2003.
In view of the impending amendment of § 308 and the reconciliation to IAS, the
Buderus Group will adjust the tax valuations of its fixed assets in the
consolidated accounts as of December 31, 2002. In line with the new statutory
requirements, fixed assets will be written up to the book values determined
under the straight-line method of depreciation. At the same time, untaxed
special reserves will be retransferred and pension provisions adjusted to the
values determined under IAS. As a result of these changes, 2002 Group earnings
before income taxes will increase by approx. Euro 120 million. Including this
extraordinary income from valuation changes, the Buderus Group will report EBT
of approx. Euro 282 million in FY 2002.
When assessing these adjustments, it should be noted that the profit
contribution is non-recurring, was not generated by the companys 2002 operating
activities and will have no impact on the cash flow. On the other hand, these
valuations led to lower earnings in the past. For the sake of transparency,
Buderus will therefore show these impacts in the income statement in a separate
item (extraordinary income) below the result from ordinary activities.
Outlook
In FY 2003, there have been no signs of a recovery in demand in Buderus relevant
output markets. The German economy, in particular, is not expected to pick up
any time soon.
Nevertheless, Buderus assumes that last years strong purchasing restraint in the
heating equipment market has led to some pent-up demand. Moreover, the
International Heating Show that will open in Frankfurt in March is expected to
provide some positive stimulation. As in the previous year, the Heating Products
Division will expand its international activities even in case of poor economic
performance.
Holding strong positions in attractive niche markets, Buderus Castings and
Special Steel Divisions will be able to compensate for declining demand on the
part of existing customers by winning new customers; Toyota and Renault, for
instance, have signed up as new customers for brake discs and closed-die
forgings, respectively.
The upfront investments made in 2002 are expected to have positive effects in
all three Group Divisions, so that Buderus will be well positioned even in a
difficult economic environment.
In view of the substantial economic risks, a reliable sales and earnings
forecast for FY 2003 can be made only after the first quarter. Internal targets
are ambitious and assume an increase in sales and earnings in line with Buderus’
medium term growth targets.
The presentation charts for todays Press Conference will be available on the
Internet at http://www.buderus.de from 10.30 a.m.
end of message, (c)DGAP 28.01.2003
——————————————————————————–
WKN: 527800; ISIN: DE0005278006; Index: MDAX
Listed: Amtlicher Markt in Berlin, Düsseldorf, Frankfurt, Hamburg, München;
Freiverkehr in Bremen, Stuttgart, Hannover
281659 Jän 03
Aktuelle News
Aktuelle Berichte
Keine Berichte gefunden
Anstehende Events
Keine Events gefunden
Webcasts
Keine Webcasts gefunden