Group - L. Possehl & Co. mbH

EPort oN SUBSEqUENt EvENtS,
oPPortUNitiES, aNd forECaStS
Particular Events after the Balance Sheet date
There have been no events requiring disclosure since the start of
the year.
orientation of Possehl Group and Probable development
GROSS DOMESTIC PRODUCT, FORECAST FOR 2008
Change over previous year in real terms in %
Germany 1.9
Eurozone 2.2
USA 1.8
East Asia (excluding China, India, and Japan) 4.4
China 10.7
Total global economy 4.5
Source: Kiel Institute for the World Economy – World Economy in Winter 2007
Predictions for the development of the global economy in 2008
are quite varied. While some anticipate continued robust growth,
others are increasingly pointing to signs of global recession. It can be
assumed that growth in the industrial countries will slow perceptibly.
In particular, signs are gathering for a serious and sustained recession
for the US economy. Economic expansion in the Eurozone could also
slow. The EU Commission has lowered its growth forecast for the
Eurozone in 2008 to 1.8 %. A similar trend is likely for Germany. China
and India, however, are turning out to be the new drivers of the global
economy. The catch-up requirements of these countries presumably
will provide significant economic stimulus in the future as well.
Letter from the Executive Board
Company Boards
Report of the Controlling Boards
Successful over the Long Term
Group Management Report
Consolidated Financial Statements
Further Information
Thanks also to the internationally oriented strategic positioning of
Possehl, we see a good chance for continued growth for the Group
over the long term. Assuming an unchanged portfolio of businesses,
we expect that consolidated sales and the consolidated result from ordinary
operations will remain at a similar high level in 2008 as in the
previous year. Through the restructuring measures taken last year in
the Textile Finishing Systems, Elastomer Processing, and Electronics
divisions, which were linked to a reduction in employees, we have
created the foundation to achieve our targeted rates of return and
insured against the effects of a possible economic downturn.
In the years ahead, the Possehl Group will continue to maintain
its fundamental orientation toward profitable and sustainable growth.
In the future, we will exploit opportunities presented by acquisitions
in existing divisions and also in new business areas. We assume that
company purchase prices will decline to an appropriate level and scarce
and expensive credit will improve our chances to make acquisitions.
Moreover, strategies will be developed and implemented in collaboration
with the management of our subsidiaries to expand our sound
positions in individual markets.
The once again improved and generally extremely solid capitalization
and financial position of the Possehl Group and its parent company
form a solid foundation for pursuing this growth strategy with resolve
in the future.
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