Armstrong DLW AG
Business Development of Armstrong DLW AG, Bietigheim-Bissingen
Ad hoc announcement §15 WpHG
Half Year Results
Business Development of Armstrong DLW AG, Bietigheim-Bissingen
Ad hoc announcement processed and transmitted by DGAP.
The issuer is solely responsible for the content of this announcement.
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Business Development of Armstrong DLW AG, Bietigheim-Bissingen in the First
Half Year 2005
Sales development
In the first half of the year 2005 Armstrong DLW AG reports 81,1 and Armstrong
DLW Group accordingly 179,2 mill. Euro.
Results of operation
In the first half year Armstrong DLW AG shows an operational loss of 26,5
mill. Euro and reached a pre-tax loss amounting 26,2 mill. Euro. The
preponderant part of the negative result is caused by an exceptional
depreciation of an investment in an associated company. The trading result at
the end of the first half-year 2005 showed a loss of 3,2 mill. Euro.
The operative business was on the one hand affected by the rising raw material
prices, which could not be forwarded to our customers to the same extend and
on the other hand by higher expenses for sales and marketing activities.
The Armstrong DLW Group reports a half-year loss of 17,4 mill. Euro and
reached a pre-tax loss of 16,6 mill. Euro. Beside the before mentioned reasons
impacting the operative business an exceptional depreciation of real estate
and buildings lead to the negative results. The trading result at the end of
the first half year 2005 showed a loss of 12,7 mill. Euro in the Armstrong DWL
Group.
Based on the existing profit transfer agreement at some Armstrong DLW AG
subsidiaries, their results in the half-year presentation will be only shown
in the Group and not in the Armstrong DLW AG. The loss declared in this regard
amounts to 9,9 mill. Euro as per June 30th , 2005 and covers also losses of
exceptional depreciation of real estate and buildings. In case these losses
still exist by December 31st 2005, they will be absorbed in the annual result
on basis of the profit transfer agreements at Armstrong DLW AG.
Orders received and orders on hand
The Armstrong DLW AG received orders in the amount of 82,5 mill. Euro. Order
backlog amounts to 16,9 mill. Euro.
Orders received with the Armstrong DLW Group amounted to 204,4 mill. Euro.
Order backlog amounts to 51,8 mill. Euro.
Investment and financing
In the first six months of 2005, Armstrong DLW AG realized investments of 2,1
mill. Euro and Armstrong DLW Group invested 2,9 mill. Euro
As evidence of its continuing support, the Armstrong Group provided new loans
of total 13 Mill. Euro to the Armstrong DLW Group and additional 5 mill. Euro
to the Armstrong DLW Group.
Employees
On June 30th, 2005, the Armstrong DLW AG had 1.100 employees and Armstrong DLW
Group counted a total number of 2.278 employees.
Outlook
Mr. Thomas Diepenbruck was by decision of the Supervisory Board appointed
Member of the Management Board and Chief Financial Officer with effect of 1st
September 2005. Mr. Diepenbruck has been serving as interim general
representative since March 2005. This appointment of the CFO is part of the
changes to Armstrong DLW management change that began with the appointment of
Mr. David M. Randich as the Chairman of the Management Board and Mr. Ton
Raaphorst as a Member of the Management Board for Sales & Marketing in August
2004. With the new board members Armstrong DLW AG has taken steps to improve
several business processes.
No comparison is provided here to the Armstrong DLW AG and Group HGB figures,
since in the course of the preparation of this years half-year report
inconsistencies were identified in regard of the half-year figures 2004,
released on August 24th 2004. Reasons therefore are under review. The 2004
full year results are not affected by these issues. Management instead
recommends a comparison of the results to the company’s audited full year 2004
financials. The annual report 2004 is released on the Armstrong DLW AG
homepage.
The already mentioned pressure on margins is likely to remain in the market in
view of ongoing high raw material prices and the remaining high
overcapacities. During the second quarter 2005 we saw a positive sales
development, which among others things, results from the new product
introductions and their good acceptance in the market. We expect this trend to
continue, since further product introductions are planned.
19. August 2005
David M. Randich
Chairman of the Management Board
Armstrong DLW AG
Armstrong DLW AG
Stuttgarter Straße 75
74321 Bietigheim-Bissingen
Deutschland
ISIN: DE0005518005
WKN: 551800
Listed: Amtlicher Markt in Berlin-Bremen, Düsseldorf, Frankfurt (General
Standard), Hamburg, Hannover, München und Stuttgart
End of ad hoc announcement (c)DGAP 19.08.2005
191654 Aug 05
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