EANS-Adhoc: Polytec Holding AG discloses the results for the full year 2009 as well as the results for the first quarter 2009 - massive strain caused by economic environment- active countermeasures

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24.06.2009

FULL YEAR 2008
The 62.6% growth in sales was due to the first-time consolidation of the
Peguform Group acquired in the year under review. Of the total increase in sales
of EUR 416.5 million (+62.6%), EUR 327.4 million (+49.2%) are attributable to
new acquisitions and EUR 122.1 million (+18.4%) are due to the full-year effect
of the acquisitions made in 2007. Excluding these acquisition effects, total
sales in 2008 showed an organic decline of EUR 33.0 million (- 5.0%). Due to the
unfavourable development of the automotive business, the earnings situation of
the group could not keep up with the growth in sales. While EBITDA registered a
small increase of 2.0%, EBIT fell by 59.2% also due to extraordinary
amortizations.

FIRST QUARTER 2009
Declining production volumes of almost all OEMs which have an impact on POLYTEC
GROUP´s results, led to a considerable drop in sales by 31.4% to EUR 139.9
million. PEGUFORM GROUP´s sales figures were not included due to the planned
divestment of this business segment. This substantial decrease in sales resulted
in a decline in EBITDA to EUR 6.6 million despite the adoption of
counter-measures, which encompassed the introduction of short-time working
schedules, the discontinuation of fixed-term employment contracts as well as the
reduction of non-essential capital expenditures.
Despite these measures, which were initiated to counteract the effects of the
economic recession, it was impossible for the company to prevent a negative
EBITDA. Earnings before interest and taxes (EBIT) amounted to EUR -3.8 million
in Q1 09. The net result during the reporting period of the PEGUFORM GROUP,
which is categorized as "held for disposal" pursuant to IFRS 5, is included in
the Q1 09 net result with a total value of EUR -39.5 million. Net result during
the reporting period also encompasses the retirement of fixed assets from the
current business for a total amount of EUR -14.5 million as well as the
impairment of PEGUFORM GROUP´s fixed assets for the anticipated disposal loss of
EUR

25.0 million. 
Therefore, net loss during the reporting period amounted to EUR -54.1 million.
Excluding the contribution of PEGUFORM GROUP to the net result, which is
comparable with the net profit of the previous year after minority interests,
the net loss in Q1 09 totaled EUR -14.6 million. 

OUTLOOK 2009
Due to the disposal of Peguform, group sales in 2009 (excluding the business
units that are to be sold off) are not expected to exceed EUR 600 million. It is
anticipated that the start of production for new projects especially in the
Automotive Systems Division, will compensate for the decline in current business
operations, which otherwise would be even more significant. The group divisions
have been impacted by the decline in sales to different degrees. Although the
car supply segment is reporting declines in sales of between 20% and 30%, there
are also temporary positive effects due to the government incentives to
stimulate car sales (scrapping premium). In the view of the management, a slight
improvement of the situation is anticipated for the second half of 2009.

The commercial vehicle supply segment is certainly facing a considerably worse
scenario. This business unit is not only confronted with more drastic declines
in sales, which in some cases amount to 50% and more, neither is there much
prospect of a short-term recovery. In fact, the business situation, at least in
the first half of 2010 is not expected to be substantially better than in 2009.
Management is, therefore, intensively monitoring the development of sales at the
Automotive Composites Division, as one of the most negatively affected business
units of the group, and is adopting remedial measures to counteract the
unavoidable negative results arising from such a sales situation. On the cost
side, counter-measures focus on the adjustment of capacities to the changed
business situation. In all of the group´s major plants, overcapacities are being
tackled with the introduction of short-time working schedules. As a last resort,
plants will also have to be shut down as in the case of the recently announced
closure of the Swedish plant. The group´s currently very limited financing
capacities have to be taken into consideration when adopting cost-saving
measures. Management has a duty to carefully evaluate restructuring steps in the
light of the short-term impact that such remedial measures will have upon cash
reserves.  

However, all measures notwithstanding, the group will certainly not be able to
prevent a negative EBIT in 2009. In addition to these internal restructuring
measures, customers´ contributions have also to compensate for declines in
results. The dramatic decrease in production volume has made former calculation
parameters completely obsolete as a basis for price negotiations. Moreover, as
specific target output volumes cannot be reached, no rationalization effects can
be applied, which used to be passed on to the customers in form of contractually
agreed price reductions (savings). Thus, in addition to implementing all
possible cost-saving measures, management´s top priority must be to obtain
customer commitments to support the supply capacity of the component supply
industry.


Further inquiry note:
Manuel TAVERNE
POLYTEC GROUP           
Investor Relations
Tel.+43(0)7221/701-292   
[email protected]

end of announcement                               euro adhoc 
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emitter: Polytec Holding AG
Linzer Straße 50
A-4063 Hörsching
phone: +43 (0) 7221 / 701-0
FAX: +43 (0) 7221 / 701-0
mail: [email protected]
WWW: www.polytec-group.com
sector: Industrial Components
ISIN: AT0000A00XX9
indexes: ATX Prime
stockmarkets: official market: Wien
language: English

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