W.O.M. WORLD OF MEDICINE AG
W.O.M. World of Medicine english
W.O.M. WORLD OF MEDICINE AG
Ad-hoc-announcement transmitted by DGAP.
The issuer is solely responsible for the content of this announcement.
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W.O.M. WORLD OF MEDICINE AG: Slight increase in sales after nine months/
Managing Board reacts to worldwide recession and revises annual objectives for
2002/
Berlin, November 12, 2002
In the third quarter, revenue slightly declined by about 7 % due to worldwide
reduced investment, especially in the United States and Europe. Overall, a small
increase of 3 % was achieved in the first 9 months compared to the same time
period last year. Because WORLD OF MEDICINE’s cost structure was oriented to
much stronger growth , the company’s earnings position continues to be
negatively affected by weak growth. The board of directors is countering the
weak development of sales revenue with a cost-reduction program. After the
initial implementation of these measures, the company has already been able to
reduce the increase in losses in the third quarter by 40 % compared to the 2nd
quarter. The full impact of the cost reductions of at least Euro 1.5 million per
year will not be felt, however, until the next fiscal year.
At present, the level of sales achieved in the third quarter is also secured
for the fourth quarter based on existing orders . The board of directors is
correcting its forecast for 2002 based solely on this scenario, which does not
take into account any further orders for this traditionally strongest quarter
of the year. A slight decrease in sales of 3 % to
Euro 29.5 million (previous forecast: Euro 36 million; previous year: Euro 30.4
million), and an EBIT of Euro -2 million (previous forecast: Euro 1.5 million;
previous year: Euro 0.6 million) are expected.
The measures implemented towards the improvement of the cost structure have as
their goal a clear increase in profitability in the next year, even with weak
growth. At the same time, adequate liquidity funding for the company will be
ensured.
In this respect, two measures will stand out in the next 12 months: the targeted
limitation of investments to those which will be conducive to increased
efficiency, and the optimization of inventory.
The complete quarterly report will be presented on November 19, 2002.
The Managing Board
Further Information: Stefanie Gehrke (IR/PR), Phone.: +49 (0) 30 399 81 566
end of ad-hoc-announcement (c)DGAP 12.11.2002
Issuer’s information/explanatory remarks concerning this ad-hoc-announcement:
Thanks to sustained sales of insufflators, sales revenue from the
Flow&FluidWORLD division (insufflators and pump systems for the distension of
body cavities) almost matched last year’s sales revenue. Sales volume of pump
systems, however, did not reach planned levels . This is due to customers’
delays in placing orders. Because WIEST Urodynamics was also unable to bring a
positive contribution to net earnings, the EBIT lies well below that of the same
time period last year (2001: Euro 2.8 million).
In the VisionWORLD division (cameras, light sources, monitors and video
documentation systems for MIS) sales revenue declined compared to last year
(2001: Euro 3,1 million). The cost-savings program introduced in July had only a
mild effect in the third quarter. The loss before interests and taxes was
reduced in the 3rd quarter (Q2: TEuro -350). The program will be fully effective
beginning next year. After nine months, the EBIT declined further compared to
the same time period in 2001 (Euro – 0.7 million).
The LaserWORLD division (U100 laser and laser beam sources) grew noticeably in
the third quarter. The marked growth can be attributed in particular to the
successful market launch of the new diode-pumped laser beam sources from
subsidiary IBL.
In contrast, sales for the U100 laser did not meet expectations.
WORLD OF MEDICINE is countering the moratorium on investments at many hospitals
with new, flexible sales offers. A slight increase in demand is thereby expected
in the fourth quarter.
World Of Medicine sales stagnated in the United States, while registering
clearly below the previous year’s level in Europe. The only region with a high
growth rate is the Asian region. This increase is not enough, however, to
compensate for losses in the other regions. The branch association ZVEI* is not
counting on a general market recovery until sometime in the course of 2003.
WORLD OF MEDICINE has launched a sales offensive to fully profit from end-of-
year business, and to ensure stable growth in the coming year.
WORLD OF MEDICINE and its technology are considered to be paving the way for
innovative procedures in the area of Minimally Invasive Surgery – MIS for short-
– with more than 25 years of experience in this growing market. This is
substantiated by the 50 % global market share WORLD OF MEDICINE holds in its
core business, long standing relationships with more than 200 business partners,
26 FDA-approved products in the United States, 31 patents, and the high quality
offered by our production facility in Ludwigsstadt. The company is well
positioned internationally with an export share of 50 %, a presence in the
largest medical technology market: the United States (Orlando, Florida), and a
good position in the Asian growth regions. Since June 13, 2001, the stock of
WORLD OF MEDICINE (ISIN DE 0006637390) has been listed at the Neuer Markt of the
Frankfurt stock exchange.
* the German electrical and electronic manufacturers’ association
Further Information: Stefanie Gehrke (IR/PR), eMail:
stefanie.gehrke@womcorp.com, Phone.: +49 (0) 30 399 81 566, Fax: +49 (0) 30 399
81 605, Internet: http://www.world-of-medicine.com
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WKN: 663739; ISIN: DE0006637390; Index:
Listed: Neuer Markt in Frankfurt; Freiverkehr in Berlin, Bremen, Düsseldorf,
Hamburg, Hannover, München, Stuttgart
120852 Nov 02
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