Müller Weingarten AG
Müller Weingarten AG: Müller Weingarten records net loss for the year
Müller Weingarten AG / Final Results Release 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. ---------------------------------------------------------------------- Ad-hoc statement acc. to § 15 WpHG (Securities Trading Act) Müller Weingarten records net loss for the year - Decline in orders for large lines - Restructuring of tool and die fabrication activities - Restructuring with MW Transformation - Changes to the Supervisory Board Weingarten, 25 April 2007 The Müller Weingarten Group approved and published the balance sheet figures for 2006 during today's meeting of the Supervisory Board. Operating under extremely difficult market and competition conditions, the Müller Weingarten Group recorded incoming orders of 291.5 m €, this representing a decline of 87.5 m € compared to the value of the previous year (379.0 m €). The order intake was therefore significantly below expectations, reflecting the increasingly challenging market situation. Sales fell by 66.7 m € to 336.6 m €. Consequently, the total output fell by 16 percent to 329.7 m € compared to 393.9 m € in the previous year. The order backlog as at 31.12.2006 was 249.2 m € (previous year: 295.4 m €). Based on international financial reporting standards (IFRS), the Müller Weingarten Group achieved a result before income tax of -15.4 m €. Extensive short-term measures taken by the company meant it was possible to improve the pre-tax result for the 1st half year (-18.9 m €) during the 2nd half of the year in spite of the continuing unfavorable market conditions. The main causes of the negative overall earnings are not only the unsatisfactory price quality but also a lack of orders for large mechanical lines. This deficit has had a significant effect on the balance of costs; on the other hand, the other business units were able to achieve their approximate planned figures. Other charges resulted from necessary provisions for risks in the order backlog as well as the restructuring costs already paid for Müller Weingarten Werkzeuge GmbH. The fiscal accounting for the Group including the effects of potential taxes reduced the loss by 1.7 m € (previous year: -3.8 m €), resulting in a net loss for the year of 13.8 m € (previous year: 5.3 m €). The Group's liquid funds fell significantly by 23.5 m € to 10.8 m €. The equity ratio in the Group remained almost unchanged at 26 percent with a balance sheet total of 274.6 m € (previous year: 318.6 m €). On the other hand, long-term debts were reduced from 88.9 m € (BY 2005) to 76.5 m € as at the balance sheet key date. Existing funds were used for reinforcing the business and improving internal structures. For example, the press drawings, rights and assets of the US service company BCN Inc. (Hastings/Michigan) were purchased using internally generated funds and this has already made a significant positive contribution during the first four months and has by far exceeded the planned figures. Investments made in establishing the production facility in Dalian/China, as well as other measures, will only exert a sustained influence on the company's performance in 2007 and beyond, leading to an improvement in the earnings position. The negative overall situation has led to the decision by the Board of Management and the Supervisory Board to propose at the Annual Shareholders' Meeting, not to pay a dividend and to carry forward the loss into the next period. Outlook for 2007 In view of the continuing difficult market conditions, prevailing overcapacity and significant demand migrations, Müller Weingarten AG embarked on the 'MW Transformation' restructuring program in autumn 2006. A total of 19 key projects will lead to sustained improvements in pricing and competitiveness. As part of this plan for a new, international production concept, 189 company employees and 40 temporary workers will be made redundant. Discussions to this effect with employees' representatives have already been completed successfully. Provision was made for the necessary restructuring expenditure in the separate accounts filed by Müller Weingarten AG in accordance with the German Commercial Code. In accordance with IFRS reporting guidelines, the restructuring expenditure can only be recorded on the Group balance sheet in the Group financial statements for 2007. The Board of Management of Müller Weingarten AG is expecting the earnings position to improve markedly in 2007 on the basis of MW Transformation. Furthermore, there are increasing signs of a cautious increase in demand from saturated markets. Targeted investments in new products (servo press technology, new hot forming processes), establishing a market presence in growth markets (Dalian) as well as the foundation of new service companies in the Czech Republic and Italy will all make a contribution to improving the market position and competitiveness. As part of the takeover of a majority shareholding by Schuler AG, following the Supervisory Board meeting all shareholders' representatives on the Supervisory Board resigned their seats, with the exception of the Chairman of the Supervisory Board, Dr. Gerhard Wacker, who will continue to be a member of this body. A decision will be taken shortly on the future composition of the Supervisory Board. Müller Weingarten AG is the only machinery and plant manufacturer in the world to combine the three key areas of expertise in metalforming, and above all in terms of automotive manufacturing: sheet metal forming, forging and die-casting. Its extensive product portfolio puts the company in the center of production technology for vehicle components used in drive, chassis and body systems. As well as its German sites in Weingarten, Esslingen, Erfurt and Remscheid, the Müller Weingarten Group owns subsidiaries in China, the USA, Mexico, Switzerland, the UK, France, Spain and the Czech Republic as well as maintaining a network of service centers worldwide. Contact: Detlef Sieverdingbeck Director Corporate Communication Müller Weingarten AG Schussenstrasse 11 D-88250 Weingarten Tel.: +49 (751) 401 2183 Fax: +49 (751) 401 2714 E-mail: detlef.sieverdingbeck@mwag.de DGAP 25.04.2007 ---------------------------------------------------------------------- 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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