Key figures affected by exchange rate changes; recovery expected
TAKKT AG: Stable earnings despite weak economy
TAKKT AG, the leading B2B mail order company for office, business and warehouse equipment in Europe and North America, successfully held its ground in the first nine months of financial 2003, despite the difficult economic environment. Even though profit margins remained stable as compared to the previous year, the weakness of the US dollar left its mark on key figures. Whereas the number of orders remained almost unchanged, turnover declined by 9.8 percent to EUR 532.1 (590.2) million. Adjusted for currency exchange rate effects, the decline would have amounted to only 1.7 percent. At 9.5 (9.6) percent, the EBITA margin remained stable and still is within the 9 to 11 percent target corridor. The EBIT margin also remained stable at 7.2 (7.3) percent.
Georg Gayer, chairman of the management board of TAKKT AG, expects to see a moderate recovery in the fourth quarter after a weak third quarter. "Reflecting the development of certain macro-economic indicators, which suggest that an economic turnaround is imminent, business has picked up slightly at the beginning of the fourth quarter."
Further increase in the gross profit margin
At 40.5 (40.0) percent, TAKKT’s gross profit margin was up on the first nine months of the previous year. This good percentage is the basis for the overall stable earnings figures.
EBITA declined by 10.8 percent to EUR 50.5 (56.6) million due to the changes in exchange rates. The EBITA margin remained stable at 9.5 (9.6) percent. EBIT dropped by 11.2 percent to EUR 38.1 (42.9) million, while the EBIT margin remained almost unchanged at 7.2 (7.3) percent.
At EUR 27.8 (29.2) million, pre-tax profit was only slightly lower than in the first nine months of 2002. Cash flow also declined moderately to EUR 36.6 (38.2) million. Both figures were affected by the changes in exchange rates.
KAISER + KRAFT EUROPA successful in Eastern Europe
KAISER + KRAFT EUROPA, the largest TAKKT division, generated EUR 264.2 (273.2) million in turnover. The moderate 3.3 percent decline is primarily attributable to restrained spending by customers in Germany, the Netherlands and the UK. By contrast, the subsidiaries in Poland, the Czech Republic and Hungary reported a positive business development. Building on its KAISER + KRAFT and KWESTO brands, the TAKKT Group is perfectly positioned to benefit from the imminent EU accession of these countries. The earnings position of KAISER + KRAFT EUROPA is good, as reflected in EBITA of EUR 40.0 (40.3) million and an EBITA margin of 15.1 percent, up from the previous year’s 14.8 percent.
Topdeq’s performance in the USA and France remains good
Topdeq, the mail order company specialising in design-oriented office furniture and accessories, suffered from the ongoing crisis in the office furniture market, which led to a 9.3 percent decline in nine months turnover to EUR 51.8 (57.1) million. The economic situation is particularly difficult in Germany, Switzerland and the Netherlands, whereas the subsidiaries in France and the USA again delivered a good growth. Topdeq’s EBITA totalled EUR -2.8 (-0.7) million.
K + K America: Hubert and Avenue reported good results
The companies of K + K America generated USD 239.9 (240.4) million in turnover, down 0.2 percent on the first nine months of the previous year. Due to the weakness of the US dollar, turnover in the reporting currency declined to EUR 216.1 (259.9) million. While C&H Distributors has been slow to benefit from the moderate recovery of the US economy, Hubert and Avenue reported good results. K + K America’s EBIT amounted to
US dollar 20.8 (21.0) million, with the EBITA margin remaining stable at 8.7 percent.
Brief profile of TAKKT AG
TAKKT AG is the leading European and North-American B2B mail-order specialist for office, business and warehouse equipment. The group sells its products in over 20 countries. The TAKKT share has been listed on the Frankfurt and Stuttgart stock exchanges since September 15, 1999 and was admitted to the new Prime Standard segment of Deutsche Boerse AG on 1 January 2003.
IAS-figures of TAKKT AG for the first nine months 2003
Stuttgart, October 30, 2003
Contacts:
Georg Gayer
Phone +49 (0)711 3 46 58-201
Dr. Felix A. Zimmermann
Phone +49 (0)711 3 46 58-207