Müller Weingarten AG
Müller Weingarten AG: Dip in results, Planned acquisition in the US, Production in China
Ad hoc announcement transmitted by DGAP – a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Weingarten, June 29, 2006 – Against the background of a declining market
and increasingly tough competition, the Board of Management of Müller
Weingarten AG is expecting to record a substantial pre-tax consolidated
loss for fiscal year 2006. Investment restraint in the large press sector
and, above all, the performance of Müller Weingarten Werkzeuge GmbH (the
group’s tool and die manufacturing company) will have a negative impact on
earnings. Appropriate restructuring measures have been implemented.
The company will be posting a pre-tax consolidated loss for fiscal year
2005; however, this is a consequence of changing the accounting system from
HGB (German Commercial Code) to IFRS (International Financial Reporting
Standards) and, linked to this change, the different methods used for
valuation and profit realization in the case of long-term construction
contracts. The company will release precise figures at its Financial Press
Conference in late July.
The company is also announcing strategic and operative measures aimed at
bringing about a rapid improvement in the market position and competitive
position of the entire group. The goal is to bring about a sustained
increase in the company’s profitability and to achieve positive results
once more from 2007 onwards. This will involve effective expansion of the
company’s service activities in the US, which the Board of Management –
with the approval of the supervisory board – will achieve by making an
acquisition. The Board of Management expects to close this deal soon. As
well as increasing the number of machines serviced by the company, this
acquisition will also have a positive impact on the company’s new machine
business.
In China, where Müller Weingarten now generates around one quarter of its
sales, the company has received the go-ahead to construct a production
shop. This move will allow Müller Weingarten to meet customer demands for
an increase in the local content in the added-value chain. Plus the company
will benefit from the resulting cost advantages.
Contact:
Detlef Sieverdingbeck
Dierector Corporate Communication
Müller Weingarten AG
Schussenstrasse 11
88250 Weingarten
Tel.: +49 751 401-2183
Fax: +49 751 401-2714
e-mail: detlef.sieverdingbeck@mwag.de
(c)DGAP 29.06.2006
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Language: English
Issuer: Müller Weingarten AG
Schussenstr. 11
88250 Weingarten Deutschland
Phone: 0751-401-2900
Fax: 0751-401-2644
E-mail: martina.herder@mwag.de
WWW: www.mwag.de
ISIN: DE0006579006, DE0006579022
WKN: 657900, 657902
Indices:
Listed: Amtlicher Markt in München, Stuttgart
End of News DGAP News-Service
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