- Lower sales volume reduced turnover and profit
- EPS Processing kept sales at virtually the same level but stronger demand for insulation did not compensate for the Packaging division’s drop in volume
- Sales in Technology below the strong first quarterly results the previous year; profit level maintained despite seasonal decline in volume
- HIRSCH Servo Group on a sound basis; no earnings forecast because of the volatile market environment
In the more volatile market environment, the first quarter of fiscal 2011/12 fell short of the results for the same period the previous year. The EPS Processing business segment however virtually maintained its sales. Lower revenue was mainly due to a drop in sales volume in the Packaging division as a result of consumer reluctance to buy electronics and household appliances, which could not be compensated by the stronger demand for insulation. In the Technology business segment , sales for the first quarter which is typically a weak season remained below the unusually strong previous year’s first quarter. Following reintegration into the two core segments, the Logistics business segment did not generate any sales in the period under review.
Sales revenue for the reporting period totaled €23.5 million (PY: €25.1 million). The operating profit (EBIT) was minus €0.26 million (PY: €0.78 million), while the profit on ordinary activities (POA) fell to minus €1.31 million (PY: €0.23 million).
|
Sales and Earnings Trends |
1st Quarter |
1st Quarter |
Change in % |
|
Sales |
25.1 |
23.5 |
-6 |
|
EPS Processing business segment |
21.3 |
20.9 |
-2 |
|
Technology business segment |
3.8 |
2.6 |
-31 |
|
Logistics business segment |
0.0 |
0.0 |
- |
|
Other activities |
0.0 |
0.0 |
- |
|
EBIT |
0.78 |
-0.26 |
- |
|
EPS Processing business segment |
1.42 |
0.34 |
-76 |
|
Technology business segment |
-0.50 |
-0.52 |
- |
|
Logistics business segment |
-0.13 |
-0.09 |
- |
|
Other activities |
0.00 |
0.00 |
- |
|
POA |
0.23 |
-1.31 |
- |
|
EPS Processing business segment |
1.04 |
-0.50 |
- |
|
Technology business segment |
-0.62 |
-0.65 |
- |
|
Logistics business segment |
-0.18 |
-0.16 |
- |
|
Other activities |
0.00 |
0.00 |
- |
|
Employees (annual average) |
621 |
597 |
-4 |
Profit after tax fell to minus €1.32 million (PY: €0.10 million) with the net loss at minus €9.90 million (June 30, 2011: minus €8.72 million).
The equity ratio decreased to 13.5 percent (June 30, 2011: 15.2 percent).
At the reporting date September 30, 2011, the HIRSCH Servo Group employed 603 people
(PY: 638). The payroll fell to 597 on average for the year (PY: 621).
The investments in the first quarter of the current fiscal year totaled €0.4 million (PY: €0.4 million). Primarily aiming to ensure liquidity, we will continue to restrict investing activities in the current financial year.
Business Segment Development in the First Quarter of 2011/12:
The EPS Processing business segment with the two divisions EPS Packaging and EPS Insulation reported sales revenue of €20.9 million for the period under review (PY: €21.3 million). In the Packaging division, the volumes sold were lower than the previous year which could not be compensated for by the stronger demand in the Insulation division. Lower contribution margins because of the decline in volumes and higher fixed costs because of the change in the way Group charges are allocated to the business segments resulted in a decrease in EBIT to €0.34 million (PY: €1.42 million). In addition, the rise in interest expenses due to the higher interest rates and foreign exchange losses also led to a fall in the POA to minus €0.50 million (PY: €1.04 million).
In the Technology business segment , sales revenue for the first quarter, which is typically a weak season, did not come up to the unusually strong previous year’s first quarterly result at €2.6 million (PY: €3.8 million). Despite fewer machine units being shipped, the EBIT remained virtually unchanged at minus €0.52 million (PY: minus €0.50 million) and the POA at minus €0.65 million (PY: minus €0.62 million). This was because of higher contribution margins, lower operating fixed costs and lower Group charges due to the change in the way they are allocated to the business segments.
Integrating operating activities into the two core business segments enabled the Logistics business segment to save costs, with the result that the EBIT fell to minus €0.09 million for the reporting period (PY: minus €0.13 million) and the POA to minus €0.16 million (PY: minus €0.18 million).
Outlook:
Finalizing the restructuring measures and implementing a long-term financing plan created a sound basis for the future of the HIRSCH Servo Group. Given the general economic situation and volatile market environment, we do not however propose to forecast earnings for fiscal 2011/12.
Changes did not occur in the contingent liabilities and contingent claims shown in the 2010/11 annual report.
The quarterly report meets the requirements of IAS 34 . In addition, the same accounting practices and valuation methods were used as for the 2010/11 annual report.
No events of particular significance occurred after the balance sheet date that would have led to a different portrayal of the net assets, financial position and results of operations.
The quarterly report was not reviewed by the auditor.
Announcement Regarding First Quarter 2010/11 Report:
The report for the first quarter of 2011/12 from July 1, 2011 through September 30, 2011 can be downloaded from www.hirsch-gruppe.com and is also available from HIRSCH Servo AG, Nr. 58, 9555 Glanegg , Austria or UniCredit Bank Austria AG, Schottengasse 6-8, 1010 Vienna , Austria .
The next date on the financial calendar is February 29, 2012 when the results for the first six months of 2011/12 will be announced.
*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 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, Thermozell ® lightweight concrete products, and transport pallets.
For further information, please contact:
Head of Corporate Communications: Michaela Promberger, Phone: +43 4277 2211-312, Fax ext.: -170, E-mail: michaela.promberger@hirsch-gruppe.com
Corporate Communications Manager: Marlene Wieland, Phone: +43 4277 2211-126, Fax ext.: -170, E-mail: marlene.wieland@hirsch-gruppe.com
Website: www.hirsch-gruppe.com