Preliminary key figures for 2009 - Loewe AG > Aktuell

Preliminary key figures for 2009:
Loewe exceeds earnings forecast despite drop in
sales
• Sales at approximately EUR 325 million fall short of expectations
• Positive EBIT of EUR 13.5 million
• Strategic margin again achieved in second half of 2009
• Dividend payment proposed
• Product offensive continues
• Moderate growth in sales in 2010
• Continued systematic focus on results
Kronach, January 26, 2010 – In fiscal year 2009 (January 1 to December 31, 2009), the
Loewe Group generated positive EBIT of approximately EUR 13.5 million (previous year:
EUR 28.5 million), thus clearly exceeding the previous earnings forecast of approximately
EUR 12 million by 13%. At EUR 325 million (previous year: EUR 374 million), sales in the
reporting period fell short of the current sales forecast of approximately EUR 350 million
by 7.5%. "The value-based marketing of Loewe's innovative home entertainment
solutions enabled the Company to clearly exceed the previous EBIT forecast by 13%. In
sales, the persisting difficult economic conditions in parts of Europe have unfortunately
severely strained our business development. This applies especially to our important
markets in Spain and the Netherlands," commented Frieder C. Löhrer, Loewe CEO.
Loewe plans to accomplish a great deal in the current year. The Company will continue to
expand its excellent brand position in the premium segment by introducing a large
number of high-resolution full HD TVs with state-of-the-art LED backlight.
At approximately EUR 325 million, sales of the Loewe Group in fiscal year 2009 were
13% lower than the 2008 figure of EUR 374 million. Business development in the different
markets continued to exhibit divergent trends. In its key market Germany, Loewe was
able to maintain the high sales level of the previous year in entertainment electronics.
Export sales of EUR 132 million reflected a significant decline of approx. EUR 43 million.
Nonetheless, highly profitable large-screen TVs with a screen diagonal of 37 inches and
larger accounted for 58% of the Company's total sales as they did in the previous year.
The negative effects of the global financial and economic crisis put a severe strain on
Loewe's export business in fiscal year 2009. This applies primarily to the important
Keyfigures 2009
Press release
January 2010
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Spanish and Dutch markets. Compared to the previous year, sales in these two countries
alone declined by almost EUR 30 million in fiscal year 2009. Principal causes for the
negative business development are the repercussions of the global financial and real
estate crisis. These factors had a particularly severe impact in Spain and the
Netherlands. The propensity to purchase durable goods was thus significantly below the
level for Germany in 2009. This is also reflected in the especially negative market trend
for LDC TVs.
Despite the lower sales and production volume than in the previous year and the ongoing
expenses for the premium positioning of the brand, Loewe succeeded in generating
positive EBIT of approximately EUR 13.5 million in fiscal year 2009, compared to EUR
28.5 million in 2008. Loewe thus significantly exceeded its previous EBIT forecast of
about EUR 12 million by 13%. The positive contribution to earnings was caused primarily
by the marketing of our innovative home entertainment systems at more consistently
stable prices than the competition. The sustained high share of large-screen TV sets,
more favorable procurement costs and the relatively strong sales in Germany also
supported earnings. "Compared to the first six months of 2009, we increased our EBIT
margin significantly from 1.0% to 6.7% in the second half. We thus again achieved our
strategic margin level of 6 to 7% in the second half," explained Oliver Seidl, CFO of
Loewe AG. Due to the very positive earnings contribution, Loewe will also propose the
payment of a dividend.
The Company also plans to accomplish a great deal in the current year. Accordingly,
Loewe will continue to systematically implement its targeted measures in strategically
important areas, such as the qualitative and quantitative expansion of the top points of
sale. Moreover, the current year will see a systematic continuation of the product
offensive with the launch of large-screen, high-definition LCD TVs with LED backlighting.
In the future, the product portfolio will be even more closely tailored to the international
product requirements of the core markets. "The new Individual televisions will come on
the market just in time for the FIFA World Cup 2010.” Löhrer is confident that, "as far as
slim design, fascinating picture technology and customizability are concerned, the new
super-flat sets will set standards in the industry. An additional highlight will be the Loewe
Mediacenter to be introduced in the second quarter of 2010.” Furthermore, Loewe will
continuously add new, innovative speaker and multi-room solutions to its home
entertainment systems line in 2010. The Group is also optimally positioned for the future
in terms of finances. "We practice strict cost discipline and we have laid the foundation for
a successful fiscal year 2010 with our very sound capital structure and the wide-ranging
financing agreements," said Seidl.
Keyfigures 2009
Press release
January 2010
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In an improved economic environment, the LCD TV market will continue to grow in
Europe in the next few years, due in particular to the high replacement demand and
increasing ownership of more than one set. From today's perspective, this market will
grow by approximately 10% in 2010 (2009: 4%) due to the FIFA World Cup in South
Africa, the market launch of HDTV in Germany and further technological innovations. The
dynamic growth engines will continue to be large-screen TV sets, which are of particular
importance for Loewe.
On this basis, the company anticipates moderate growth in sales for fiscal year 2010.
"Loewe's innovative home entertainment solutions put it in an extremely good position for
repeating its high level of sales in Germany in 2010. Profitable sales growth in the
double-digit range will be realized in the remaining key European markets. As a premium
brand, Loewe will continue to focus systematically on results with cost discipline and
value-based marketing," said Löhrer.
Contact:
Loewe AG
Industriestraße 11
96317 Kronach
Germany
Phone: +49 (0)9261 99-477
Fax: +49 (0)9261 99-444
http://www.loewe-int.de
presse@loewe.de
About Loewe
Outstanding design, innovative technology and superior quality are features of all
products sold under the Loewe premium brand. Technological highlights include: home
entertainment systems with high-resolution picture quality, an integrated hard disk
recorder and a digital TV receiver. The company was founded in Berlin in 1923. Today,
Loewe is a listed Group with approximately 1,000 employees. In fiscal 2008, Loewe
achieved sales of EUR 374 million and EBIT of EUR 28.5 million; about half of total sales
are recorded internationally. Loewe produces and distributes televisions, Blu-ray players,
DVD recorders and audio components, which are also offered as complete Home
Cinema solutions.
Keyfigures 2009
Press release
January 2010
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