Villeroy & Boch: Interim Report Half-year 2009
(January – June 2009)
Cyclical decline of 19.8% in consolidated sales
The first six months of 2009 saw a continuation of the global recession, which gained further momentum in the 2nd quarter and had a clear impact on the development of business in the Villeroy & Boch Group. In the first six months of 2009, therefore, the company achieved net sales of Euro 348.6 million, as compared to Euro 434.8 million in the previous year. This represents a sales decline of 19.8%.
EBIT almost balanced due to cost-cutting measures in 2nd quarter
The short-term Group measures to cut costs showed a positive effect on the operating result (EBIT), which was almost balanced in the 2nd quarter with a value of Euro -1.4 million. EBIT of Euro -7.6 million at the end of the 1st quarter was still a clearly negative total. As a result of short-time work at locations in Germany and a reduction of 614 jobs worldwide, it was possible to cut prior-year labour costs by Euro 13.6 million.
First-half result burdened by costs of Euro 60 million for restructuring programme
Villeroy & Boch Group earnings before tax (EBT) in the first six months of 2009 totalled Euro -74.1 million (prior-year: Euro 13.3 million). This figure includes costs of Euro 60 million which were incurred as a result of the restructuring programme initiated in March to increase competitiveness. When adjusted to exclude this non-recurring expense, the EBT of Euro -14.1 million was clearly lower than that of the previous year due to the drop in sales.
Trend in the Divisions
Both Divisions recorded losses during the 1st half year in the area of sales and result. Sales of Euro 220.0 million in the Bathroom and Wellness Division were Euro 58.6 million lower than prior-year sales, which totalled Euro 278.6 million. In the first half of 2009 the Tableware Division recorded sales of Euro 128.6 million – 17.7 % lower than in the previous year.
Sales markets
The economic development has affected regional sales markets in a very varied way. Only minimal sales declines were recorded in the German market in the first half year. In contrast, the greatest sales losses were made in the USA and Great Britain.
For further information please contact:
Almut Hähner-Ural
Head of Press and Public Relations
Tel: 00 49 (0) 68 64 - 81 13 97
E-Mail: haehner-ural.almut@villeroy-boch.com