Villeroy & Boch: Interim Report 3rd quarter 2009
January – September 2009
Sales decline in third quarter significantly reduced
In the first nine months of the 2009 financial year, the Villeroy & Boch Group generated net sales of €529.2 million after €635.1 million in the same period of the previous year – a decline of 16.7%. Down 9.8% as against 2008, the declines in the third quarter were more moderate than in the second (-22.2%) and first quarters (-17.5%).
EBT stable year-on-year in third quarter
Earnings before taxes (EBT) between January and September were significantly lower than in the previous year at €‑78.5 million. The main reason for this is the €60.0 million provision recognised in the first quarter for the industrial restructuring of the Group. Even without this expense, EBT for the first nine months was clearly negative at €‑18.5 million on account of sales developments; in 2008 the Group had generated positive earnings of €9.3 million in the same period.
In spite of the ongoing sales losses, earnings before taxes in the third quarter remained virtually constant year-on-year at €‑4.3 million (2008: €‑4.1 million) thanks to the early introduction of cost-cutting measures.
Division development
Sales in the Bathroom & Wellness Division were down 20% on the previous year in the first nine months of 2009 at €325.9 million.
Tableware sales declined by 10.7% as against 2008 to €203.3 million.
Outlook for the fourth quarter
Villeroy & Boch is not anticipating any further significant growth stimulus in the remaining months of 2009. However, slowing sales declines, Christmas business (a major factor for Tableware) and the ongoing cost-cutting measures should lead to earnings before taxes remaining at the level of the second and third quarters in the fourth quarter as well. Nonetheless, the earnings for the year as a whole will be largely determined by the restructuring resolved in spring.
Contact:
Almut Hähner-Ural
Head of Press and Public Relations
Tel: +49 (0) 68 64 - 81 13 97
Fax: +49 (0) 68 64 - 81 26 92
Mail: haehner-ural.almut@villeroy-boch.com