Buderus AG
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Buderus well -positioned in a difficult economic environment
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Buderus well -positioned in a difficult economic environment
Wetzlar, Nov. 13, 2002 At Euro 1,364 million, sales generated by Buderus
Aktiengesellschaft, one of the leading manufacturers of heating products in
Europe, in the first nine months of 2002 were down 4% on the previous years
Euro 1,416 million. While the company reported growing sales abroad, the
domestic business suffered from the continued weakness of the German economy,
which affected all output markets of the Buderus Group. Even the traditionally
stable German market for heating products was unusually weak as a result of the
strong purchasing restraint on the part of German consumers.
Buderus nevertheless considers itself to be well positioned in a difficult
economic environment. While we missed our medium-term growth target for the
time being due to the weak German market, we reached our growth targets in the
international market for heating products, says Uwe Lüders, Board Chairman of
Buderus Aktiengesellschaft.
Earnings before income taxes amounted to Euro 110 million, compared to Euro 137
million in the previous year. The decline was mainly due to the volume-related
decline in Group sales which resulted in reduced utilization of production
capacities. Earnings were additionally weighed down by one-time expenses in
conjunction with investments in further profitable growth. Says Uwe Lüders: We
maintained our earnings at a high level despite the unfavourable economic
environment. We are convinced that the upfront investments now made will enable
us to reach our growth targets.
Group earnings after taxes amounted to Euro 73 million, compared to Euro
83 million in the first nine months of the previous year. At Euro 115 million
(2001: Euro 124 million), the cash flow clearly exceeded the companys increased
capital expenditure of Euro 67 million (2001: Euro 56 million).
International sales rose from Euro 503 million to Euro 510 million in the first
nine months of the year. This was mainly due to growth in the Heating Products
Division. Buderus international sales of heating products increased by 9%, which
was more than sufficient to offset the cyclically induced decline in sales in
the Castings and Special Steel Products Divisions. International sales now
account for 37% of total sales. The company expects the internationalization of
its business activities to accelerate.
To achieve its medium-term profit targets, Buderus will continue the
cost-cutting programs that were launched early on. The measures taken cover all
Group Divisions. Timely, continuous adjustments such as the recent agreement on
reduced working hours at the Lollar plant allow the company to avoid abrupt cuts
and their negative side effects.
Given that domestic demand will not improve in the fourth quarter, Buderus
expects full-year sales to be down 4% on the previous year. Earnings before
taxes are expected to amount to almost 9% of total sales.
The full report on the first nine months is available at http://www.buderus.de .
Buderus (ISIN: DE0005278006 // WKN: 527 800) is a leading European manufacturer
and wholesaler of heating products. Building on over 270 years of experience,
Buderus develops solutions which consistently optimize the energy utilization
ratio in the residential sector. Buderus continues to expand its leading
position in this growth market. The company is also a leading supplier of
castings and special steel products in attractive niche markets.
end of message, (c)DGAP 13.11.2002
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WKN: 527800; ISIN: DE0005278006; Index: MDAX
Listed: Amtlicher Markt in Berlin, Düsseldorf, Frankfurt, Hamburg, München;
Freiverkehr in Bremen, Stuttgart, Hannover
130730 Nov 02
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