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ESCADA AG english
ESCADA misses forecasted revenue and income due to weak fourth quarter
Ad-hoc-announcement processed and transmitted by DGAP.
The issuer is solely responsible for the content of this announcement.
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ESCADA misses forecasted revenue and income due to weak fourth quarter
Full year loss expected – ESCADA core business profitable – Cost reduction
and divestiture programs initiated
Aschheim/München, November 12, 2001
In the fiscal year-ended October 31, 2001, ESCADA GROUP will miss the
forecasted revenues of EUR 925MM and EBIT of EUR50MM. Preliminary results
indicate revenues were EUR 845MM, 4% over 1999/2000. Adjusted for the first-time
consolidation of retail store chain BiBA, revenues were 1% below last year.
ESCADA Group will report a net loss for the full year. EBIT in the core ESCADA
business was positive in the full-year results.
Through August 31, 2001 (10 months of fiscal year), group EBIT reached EUR 25MM
(EUR 21MM 1999/2000) and was in line with expectations, despite growing
recessionary pressures. In September and October, traditionally ESCADA’s
strongest months, revenues were significantly below expectations due to the
terrorist attacks in the United States. In addition, the decline in
international travel by affluent customers significantly impacted international
sales.
The Management of ESCADA has initiated comprehensive measures to raise Group
profitability in 2001/2002. These measure include:
1) A significant, permanent reduction of costs of EUR35MM, which will take
effect in 2001/2002.
2) Measures to increase operating cash flow, including a review of all capital
expenditure projects and a reduction in working capital.
3) The acceleration of the announced divestment program, which will lead to a
reduction in the balance sheet by approximately one-third. The investment
bank Morgan Stanley has been mandated as advisor for the divestiture
program.
These measures will have effect in fiscal-year 2001/2002 and will support the
targeted profitable growth of ESCADA’s core business. More detailed financial
results will be announced on December 17, 2001 at the analyst conference in
Munich. For the first time, the full-year annual results will be presented in
accordance with IAS (International Accounting Standards.)
ESCADA AG
Management Board
end of ad-hoc-announcement (c)DGAP 12.11.2001
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WKN: 569210; Index: MDAX
Listed: Amtlicher Handel in Berlin, Frankfurt und München; Geregelter Markt in
Bremen; Freiverkehr in Düsseldorf, Hamburg und Stuttgart
120801 Nov 01
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