Müller Weingarten AG
Müller Weingarten burdened by negative market development
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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Ad-hoc Notice in accordance with § 15 of the
German Securities Trading Law (WpHG):
Müller Weingarten burdened by negative market development
• Negative result for the year based on IFRS
• Improvement in liquidity
• Acquisition in the US
• Rolf Zimmermann appointed new Chairman of the Board of Management
Stuttgart, July 31, 2006. The Müller Weingarten Group’s consolidated
financial statements for fiscal year 2005 are based on the applicable
International Financial Reporting Standards (IFRS) for the first time.
Faced with a difficult market and competitive environment, the Müller
Weingarten Group posted an order intake of € 379 million, compared to the
record figure of € 412.3 million recorded in the previous year. Order
intake therefore fell below expectations, reflecting the increasingly
challenging market situation. Due to the high order intake achieved in the
previous year, sales rose by € 7.6 million to € 403.3 million. Total output
fell by 4.5 percent to € 393.9 million, compared to € 412.3 million in the
previous year. As of 31.12.2005, the order backlog stood at € 295.4 million
(previous year: € 319.7 million).
Based on the International Financial Reporting Standards (IFRS), the Müller
Weingarten Group posted a pre-income-tax result of € -1.5 million. The main
reason for the negative result is the continually
worsening price and earnings situation. Further burdens resulted from
necessary provisions for the order backlog, from the losses absorbed by
Müller Weingarten Werkzeuge GmbH (the group’s tool and die manufacturing
company) and from start-up losses at the French sales and service company.
The fall in profits was also due to the switch to different, IFRS-based
accounting methods for valuation and profit realisation.
Tax expenses, including the effects of deferred taxes, burdened the result
by € 3.8 million (previous year: € 1.6 million); consequently, the net loss
for the year totalled € 5.3 million (compared to a net profit of € 9.6
million in the previous year). However, liquid funds rose once more to
stand at € 37.3 million as of the year end. On balance, therefore, the
group has no bank debts.
The Supervisory Board and Board of Management have decided against paying a
dividend. Instead, available funds will be used for strategic and operative
growth and for precisely targeted investment in high-growth markets and
segments.
With this in mind, Müller Weingarten can announce that it has purchased the
subscription rights relating to the US American service company BCN Inc.
(Bliss, Clearing, Niagara) based in Hastings/Michigan as part of an ‘Asset
Deal’. An agreement to this effect was signed this weekend by Müller
Weingarten and BCN.
BCN is a service company which specialises in lifecycle support,
maintenance and repair for presses made by the former manufacturers Bliss,
Clearing and Niagara. In fiscal year 2006, the company will posted sales of
close to US$ 20 million. It employs a workforce of around 60 and is a
profitable business.
Once the deal has been closed, as is expected soon, the Müller Weingarten
Group will own the subscription rights for the installed presses world-wide
made by the manufacturers Bliss, Clearing und Niagara, all of whom were
previously involved in new-machine business. The goal of the acquisition is
to further develop the already successful service activities of the MW
Group. Both parties have agreed to maintain silence about the purchase
price.
Change on the Board of Management
At its meeting today, the Supervisory Board appointed Rolf Zimmermann (59)
– formerly chairman of the board at Ford Werke AG in Cologne – as the
company’s new Chairman of the Board of Management, effective August 2,
2006. The incumbent interim Chairman of the Board of Management, Prof. Dr.
Günther Langenbucher (63), is leaving the company as planned, with effect
from the same date.
Outlook for 2006
The Board of Management of Müller Weingarten AG is expecting the difficult
market situation to continue and therefore forecasts a substantial pre-tax
consolidated loss for fiscal year 2006 also. Continued investment restraint
in the large press sector and, above all, the performance of Müller
Weingarten Werkzeuge GmbH will have a negative impact on the final result.
Appropriate restructuring measures in the Tool and Die Fabrication segment
and measures aimed at boosting profitability have been implemented.
Chairman of the Supervisory Board Dr Gerhard Wacker: ‘In Rolf Zimmermann,
we have brought on board a high-profile expert from the automotive industry
as Chairman of the Board of Management for Müller Weingarten AG. His proven
expertise, his vast experience and his many years spent at management level
are precisely what we are looking for in order to further develop and
efficiently implement our proposed restructuring programmes, so that the
company can quickly return to achieving the success to which it has become
accustomed. The Supervisory Board would like to thank Prof. Langenbucher
for the undying commitment he displayed during his 10 months as interim
Chairman of the Board of Management – a period in which he initiated and
implemented major restructuring measures with great aplomb.’
Contact:
Detlef Sieverdingbeck
Head of Corporate Communications
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 31.07.2006
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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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