euro adhoc: Eybl International AG / quarterly or semiannual financial statement / In the first quarter of 2007/08, Eybl International maintains its earnings stability of the second half of 2006/07 (E)

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  • Marked increase in free cash flow and liquid assets compared to 2006/07.
  • Large new orders, especially from German car manufacturers, permit the expectation of order intake of almost EUR 400 million during the financial year.
  • Fall in new registrations in Western Europe results in a drop in sales to EUR 76.6 million.

Krems, July 26, 2007. In a market environment, which continues to be problematic, during the first quarter of 2007/08, Eybl International achieved sales returns of EUR 76.6 million (preceding quarter: 79,6 Mio., Q1 2006/07: EUR 88.7 million). A fall of 1.2% in new registrations in Western Europe during the first half of 2007 (yearly comparison) represented a continuation of the trend of previous years. There was a particularly marked drop in sales in the French market of 3%, with the registrations of vehicles from French manufacturers falling by no less than 7%.

In the first quarter of the 2007/08 financial year, Eybl International EBIT was raised by more than 20% as compared to the preceding quarter to EUR 1.3 million. However, this amount was still far lower than the comparable figure for the previous year (Q1 2006/07: EUR 2.4 million). The ordinary business result amounted to minus EUR 0.5 million, which was more than 40% up on the total for the same period of the last financial year, while the loss for the period was down by almost a half at minus EUR 0.4 million. The constant strength of the self-financing capability was underlined by EBITDA of EUR 5.7 million (Q1 2006/07: EUR 6.5 million) and as in the preceding year, the EBITDA margin stood at 7.5%.

At EUR 4.9 million, operative cash flow was markedly higher than the comparable value of the preceding year (EUR 1.2 million). As a result of the focus on positive cash flow development, during the first quarter free cash flow of EUR 22.7 million was generated (Q1 2006/07: EUR 0.4 million). This led to an increase in liquid assets to EUR 12.4 million (Q1 2006/07: EUR 10.2 million), which was achieved in spite of payment conduct in line with planning and additional loan repayments,

Large new orders; first and foremost from German car manufacturers During the first quarter of 2007, Eybl International was able to capture several notable order intakes with a total value of almost EUR 60 million, which when adjusted, mean a total order volume up to today of around EUR 1 billion. The new orders include the production of 50% of the fabrics used in the AUDI Q5, the development and make-up of seat covers for the new VW Passat Coupé (together with the VW subsidiary SITECH), a ski sack module for BMW made of waterproof fabric and headliner material for the compact BMW 1. Moreover, within just two years, Eybl International has succeeded in being represented with advertising items in all SEAT models.

Further improvements in asset and capital structure
At EUR 55 million, or 24.2% of total assets, the equity trend showed a clearly positive tendency (Q1 2006/07: EUR 51.4 million, or 20.2%). Taking into account the limited partnership capital of EUR 7.3 million, which is reported as outside capital, the equity ratio now amounts to 27.4%. All in all, following the reduction of assets in the current financial year, the assets structure is stable with a further reduction in total assets of around EUR 4 million.

Outlook - order intake of over EUR 400 million expected during the financial year
In order to maintain and further consolidate the position that it has established over the years as a supplier of innovative developments to the European automotive sub-supplier industry, Eybl International is seeking to enhance its market strength through a strategy of systematic growth. In the 2007/08 financial year, this means an increase in the market addressed to almost EUR 4 billion and a targeted order backlog in excess of EUR 1.1 billion. The Eybl International management anticipates that the package of measures approved for the current financial year will lead to an improvement in core business and an increase in return on capital.

The most important Eybl International AG financial indicators at a glance:

first quarter fourth quarter first quarter Key indicators 2007/08 2006/07 2006/07

Sales (in EUR m) 76.6 79.6 88.7
EBIT (in EUR m) 1.3 1.1 2.4
EBIT margin in % 1.7 1.3 2.7 EBITDA margin in % 7.5 8.1 7.5 Profit for the period
(in EUR m) -0.4 -1.9 -0.6
Free Cash Flow 2,7 27.6 0.4 Order backlog (in

EUR m) 1,000 1,040 1,000
Employees 3,887 3,940 4,221

Eybl International in brief
Eybl International AG, which is listed on the Vienna Stock Exchange, is an internationally recognised manufacturer of interior components for automotive interiors, specialising in the production of automotive textiles, the manufacture of seat covers in cloth or leather and cloth/leather combinations and the lining of special interior parts. The company, which is domiciled in Krems a.d. Donau/Lower Austria, employs some 4,000 people at 15 locations, of which eleven are sited in Austria, Hungary, Romania, Germany and Slovakia.

All company facilities are audited according to the stringent accreditation requirements used by the automotive industry. Company sales offices are also to be found in Germany, France, Spain and the U.K. Today, Eybl International is one of Austria's largest companies in the automotive sub-supplier sector, as well as being the country´s biggest textile manufacturer in terms of sales.

Further inquiry note:
Eybl International AG
Investor Relations
Robert Gabriel
Tel.: +43 (0) 2732 881-300
Fax: +43 (0) 2732 881-79

end of announcement euro adhoc

emitter: Eybl International AG
Dr. Franz Wilhelm-Straße 2
A-A-3500 Krems
phone: 02732/881
FAX: 02732/881-79
sector: Speciality stores
ISIN: AT0000908157
indexes: WBI, ATX Prime
stockmarkets: official market: Wiener Börse AG
language: English