Dyckerhoff GmbH
Dyckerhoff AG: Impairment of Oglesby, IL cement plant; EU Antitrust Proceedings
Dyckerhoff AG / Key word(s): Profit Warning/Miscellaneous 10.12.2010 16:26 Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Wiesbaden, December 10, 2010 Impairment of Oglesby, IL cement plant; EU Antitrust Proceedings Our jointly controlled entity RC Lonestar Inc. in the U.S. resolved today to write down the book value of property, plant and equipment located at the Oglesby, Illinois cement plant and consisting of the facility's production related assets. Manufacturing activity at the plant, which used to have a production capacity of 0.7 million tons of cement, had been temporarily ceased effective December 1, 2008, under the assumption that production would resume within the near term. Based upon the lack of improvement in the economic conditions of the Midwest market area since this date, the company does not expect to resume production at Oglesby for several years, which means indefinitely in time. These circumstances indicate that the carrying amount of the production related assets is impaired. However, the facility will continue to operate as a distribution terminal and the market will be served by optimizing the utilization of the company's Indiana (Greencastle) and Missouri (Selma, Cape Girardeau) plants, with no impact on the ability to attend to customers and on revenues from operating activities. The Supervisory Board of Dyckerhoff AG, during today's meeting, agreed to mothball the production facility indefinitely in time and took note of the related impairment. The relevant impact in the consolidated financial statements can be estimated at EUR 48.3 million(1) on profit for the year and EUR 49.3 million(2) on equity. The impairment charge is a non-cash item and therefore it does not affect the expected operating cash flow for the financial year 2010 and the net financial position of the group. A similar press release is being issued by the parent Buzzi Unicem SpA, with indication of the relevant impact on its consolidated financial statements. Furthermore, our controlling shareholder Buzzi Unicem SpA received a notification from the European Commission informing about its decision to initiate proceedings vis-à-vis several companies, including Buzzi Unicem SpA and its controlled European subsidiaries, inter alia Dyckerhoff AG, operating in the cement sector in several European countries, aimed to ascertain the possible violation of art. 101 of the Treaty on the functioning of the European Union and of art. 53 of the Agreement on the European Economic Area. In particular, the Commission is willing to conduct investigations in order to ascertain the possible existence of restrictions to the trades between several Members of the European Economic Area (EEA) and towards the EEA, of market division, of price coordination and of other potentially anticompetitive practices in the market for cement and other related products. The opening of the proceedings represents the beginning of a phase in which Buzzi Unicem SpA shall have the right to defend itself before the Commission and has a preliminary character also for the Commission: the initiation, therefore, does not mean that the Commission has any conclusive proof on the existence of a violation. Buzzi Unicem SpA, to its knowledge, deems that no evidence exists to indicate a hypothetical infringement of the antitrust laws. (1) average exchange rate dollar/euro Jan-Nov 2010 (2) exchange rate dollar/euro at Nov 30, 2010 10.12.2010 DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: Dyckerhoff AG Biebricher Str. 69 65203 Wiesbaden Deutschland Phone: +49 (0)611 676-0 Fax: +49 (0)611 676-1040 E-mail: investor.relations@dyckerhoff.com Internet: dyckerhoff.com ISIN: DE0005591036, DE0005591002 WKN: 559103, 559100 Listed: Regulierter Markt in Düsseldorf, Frankfurt (Prime Standard); Freiverkehr in Berlin, Hamburg, Hannover, München, Stuttgart End of Announcement DGAP News-Service ---------------------------------------------------------------------------
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