Press Release, 30.03.2007
TA Triumph-Adler reports net earnings 2006 both for the Group and parent company
Preliminary figures for 2006 confirmed. Further sales growth planned for the 2007 fiscal year – earnings expected to grow stronger than sales
Nuremberg, March 30, 2007 - TA Triumph-Adler AG published today its Group financial statements for fiscal year 2006. Preliminary figures as reported on March 4, 2007, were matched or slightly exceeded by those included in the testified final statements. Sales grew 12.3% from € 336.7 million in the previous year to € 378.2 million. Operating profit (EBIT) rose by almost 50% compared with the previous year from €11.7 million to €17.5 million. The operating EBIT margin calculated as EBIT, excluding the effect of pension expenses, expressed as a percentage of sales rose from 5.6% to 6.3%. For the first time since 2001, TA Triumph-Adler reports a consolidated net profit for the year. The share attributable to shareholders of the parent company was €2.0 million. Earnings per share for shareholders in TA Triumph-Adler AG was €0.05. Forecasts communicated in the course of fiscal year 2006 were fully accomplished.
Group cash flow in financial 2006 rose compared with the previous year from €28.8 million to €34.5 million. As of December 31, 2006, cash and cash equivalents had risen from €13.2 million as of December 31, 2005 to €27.4 million. Total consolidated assets amounted to €440.9 million, €18.8 million or 4.4% above the level on the same date in 2005 (€422.1 million). The growth in total assets is mainly due to the significantly expanded business activity as well as, to a small degree, to acquisition activity. The consolidated equity of TA Triumph-Adler AG totaled €50.1 million (without minority interests). This allowed the equity ratio to rise slightly from 11.4% to 11.5%
In the forecast the Management Board describes both the position of, and the outlook for, the Group as favorable. TA Triumph-Adler is assuming positive future developments for business. While it is not being anticipated that the Group can match the high organic growth rate reached in the 2006 financial year, plans are nevertheless to achieve an increase in operating results that outstrips revenue growth, and net earnings before tax for the year just within the double digit million range. Management currently anticipates a linear continuation of this development for the subsequent 2008 financial year, and by 2010 at the latest, aims to generate Group revenue of €500 million with an operating EBIT return on sales of 9%.
Due to a reduction of tax rates which is part of the planned Federal Tax Reform, Management anticipates that the company will not be able to fully use its loss carryforwards in the future. When the reform comes into effect, write-downs of deferred tax assets will be required which may amount to €36 million, if the current Government plans will be carried out.
In the financial statements of TA Triumph-Adler AG, which is the legally relevant parent company, the deferred tax assets relating to the tax loss carry forwards are not capitalized. AG equity would remain unchanged, therefore. As of December 31, 2006 the parent company equity rose to € 64.2 million due to net earnings amounting to € 3.6 million. The AG equity ratio stands at 20.5%.
As announced on March 6, 2007, TA Triumph Adler is planning to completely redeem its existing financing arrangements through the introduction of a portfolio of borrowing instruments, as well as through a capital increase of approximately €20 million in the course of the current fiscal year. This will create the basis for a higher level of growth. The targeted refinancing is also intended to augment the Company's equity base in order to counterbalance the risk of a devaluation of deferred tax assets arising from the planned reform of corporate taxation.
A successful execution of this project will secure a significant reduction in interest costs and a major increase in strategic flexibility with respect to additional acquisitions in the core business. Thanks to competitive products and the Total Output Management (TOM) consulting approach, the company is looking at special growth opportunities, in particular in view of printers and innovative color technologies. In the Distribution area it is intended in 2007 above all to continue the growth path in exports, and further raise the share of sales generated abroad. Implementation of the initiated internal efficiency improvements will continue. Thanks to this bundle of measures targeting sales and earnings improvements TA Triumph-Adler expects to increase corporate earnings in the current and the coming years faster than sales.
Further details can be obtained from:
TA Triumph-Adler AG
Dr. Joachim Fleing
Phone: +49 (0) 911 / 68 94 - 499
Fax: +49 (0) 911 / 68 98 -200
Mailing address:
Suedwestpark 23
D -90449 Nuremberg, Germany
ir@ta.ag
www.triumph-adler.de
Important Information:
This press statement contains forward-looking statements that are based on the assumptions and estimations of the management of TA Triumph-Adler AG. Even though the management is of the opinion that these assumptions and estimations are correct, the actual future development and the actual future results of these assumptions and estimations may deviate materially owing to many different factors. These factors could include, for example, a change in the overall economic situation, exchange rates, interest rates as well as changes in the development of the market and changes to the competitive situation arising from technological change. TA Triumph-Adler AG undertakes no guarantee that the future development and the actual future results achieved will meet the assumptions and estimations expressed in this press statement, nor does it assume any liability in this regard.