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| OMX Copenhagen Stock Exchange | Kgs. Lyngby, 22 March 2007 |
| Stock exchange release no. 3/2007 | |
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This is a translation into English of the original stock exchange release in
Danish. In case of discrepancies between the two texts, the Danish text shall
prevail.
At a meeting today, the Board of Directors and the Executive Board of Brødrene
Hartmann A/S approved the Group's Annual Report 2006. The Group posted DKK 1,475
million in revenue in 2006 and an operating profit of DKK 62 million, which is
in keeping with the latest announcement. However, adjusted for non-recurring
items, including in particular the sale of the Group's head office, the amount
in operating profit came to DKK 17 million, and this is not satisfactory.
Operations were adversely affected by production difficulties and replacements
in Group Management.
Group:
Revenue came to DKK 1,475 million, reflecting growth of 4% (DKK 60 million) from
the year-earlier level.
Operating profit came to DKK 62 million against DKK 53 million in 2005. Adjusted
for a number of non-recurring items the amount in operating profit came to DKK
17 million, reflecting a decline of DKK 36 million from the year-earlier level.
The amount reflects a shortfall of approx. DKK 20-40 million compared to the
level announced in the Annual Report 2005, and this is not satisfactory.
The Group posted a consolidated net loss of DKK
77 million against the original expectations of DKK 5-15 million announced in
the Annual Report 2005. The amount reflects the adverse effect of the
write-downs relating to South America.
The operations in South America were put up for sale in 2006, and the sales
process is still ongoing. The operations are recognised in the accounts as
discontinued activities and affect only the amount in consolidated
profit/(loss).
Divisions:
Egg & Fruit Packaging Europe posted DKK 1,037 million in revenue, up 5%. The
amount in operating profit came to DKK 78 million, resulting in a decline in
EBIT margin from 11.3% in 2005 to 7.6% in 2006. This is unsatisfactory and was
attributable primarily to production difficulties.
Egg & Fruit Packaging North America posted DKK 153 million in revenue,
reflecting an increase of 9%. Operating loss came to DKK 46 million, reflecting
a marginal improvement of DKK 6 million from last year. The business in North
America is much better prepared for the future than it was one year ago, but the
risks in North America are still deemed to be considerable.
Industrial Packaging achieved DKK 203 million in revenue, up 10%. Operating
profit came to DKK 9 million, reflecting a decline of DKK 11 million from last
year. Although not unexpected, this development is unsatisfactory and was caused
primarily by production difficulties.
Outlook:
The Group expects 2007 to be a year of consolidation. Revenue in 2007 is
forecast in the range of DKK 1,500 million, with an operating profit of approx.
DKK 40-50 million and a profit after tax of DKK 10-20 million.
Work has begun to initiate further strategic initiatives for announcement in the
second half of 2007. The forecast does not take account of any costs associated
with these initiatives.
The Annual Report 2006 and statements by the Management are available on
www.hartmann.dk
Brødrene Hartmann A/S
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| Bjarne Eriksen | Peter Arndrup Poulsen |
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| Chairman of the Board | Chief Executive Officer |
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