• Highest sales in company’s 35-year history
• Earnings target not achieved by reporting date
• Position in Eastern Europe further strengthened
• Positive outlook confirmed for 2007/08
The preliminary results for fiscal 2006/07 were to be announced on September 14, but publication has been brought forward because of recent changes in the 2006/07 business situation.
Due to customers delaying payments for several large-scale projects in the Machinery and Plant Engineering business segment, the target of 5.7 MEUR for the profit on ordinary activities (POA) set by the Management Board will not be met in fiscal 2006/07. Given that the reporting date is June 30, these delays mean that orders can only be allocated to costs. Preliminary figures consequently show a POA of 3.8 MEUR (previous year: 4.6 MEUR).
Fiscal year 2006/07
According to the preliminary figures for fiscal 2006/07, the HIRSCH Servo Group has achieved the highest sales in the company’s 35-year history at over 100 MEUR (previous year: 69 MEUR). On the earnings side, the Packaging division showed negative growth, especially in Poland. However, the Insulation division and Machinery and Plant Engineering achieved higher profits than in the previous year. The largest investment program in the company’s history at over 18 MEUR is primarily due to plant extensions in Poland, Romania and Hungary and expansion in insulation manufacture in Glanegg.
Outlook
Management confirms the forecast for fiscal 2007/08 with a POA of 6.5 MEUR and earnings per share of 10.70 euros, basing its estimation on the following facts:
- The marked increase in sales in 2006/07 to over 100 MEUR (PY: 69 MEUR) is proof of our strategically effective positioning with a unique, extensive production network consisting of eight plants in the growth market of Eastern Europe and the acceptance of HIRSCH services.
- Our investment in EPS Processing totaling over 16 MEUR in 2006/07 will put us on a good footing for further organic growth in 2007/08 with the demand for insulation and packaging continuing to enjoy fast growth. Strong investment activities on the part of leading Asian house appliance and television manufacturers in Eastern Europe in particular form a sound basis for continued growth given that our range of services is geared to their operations (local supply).
- The new plant and machinery developments rolled out in 2006/07 should make a higher contribution to operating income in 2007/08 than in the launch year.
- In 2006/07, the Machinery and Plant Engineering business segment posted one-off expenses of around 1 MEUR, as a prototype did not produce the required performance and had to be written off almost entirely.
A rise in earnings of at least ten percent is expected for 2008/09, as the HIRSCH Servo Group will continue to implement its growth strategy. In addition, new developments are now also in the pipeline that could be produced in larger numbers and sold more profitably if required.
The next date on the financial calendar is October 18, 2007 when the balance sheet press conference and the analysts’ and investors’ meeting will be held.
*The HIRSCH Servo Group is the EPS specialist on the Vienna Stock Exchange with manufacturing facilities in Austria, Hungary, Poland, Slovakia, Italy and Romania. EPS products (EPS stands for expandable polystyrene and is better known under the brand name of Porozell®) support a variety of functions, including climate protection and energy savings, as well as sustainable and eco-friendly growth. Their wide-ranging applications cover packaging, shape-molded parts, building insulation, modular boards for underfloor heating, construction blocks and Thermozell® lightweight concrete products.
For further information, please contact Michaela Promberger, Tel: +43 4277 2211-312,
Fax ext.: 370, michaela.promberger@hirsch-gruppe.com, www.hirsch-gruppe.com
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