DGAP-News: ARQUES pursues consistent consolidation strategy in the first quarter

ARQUES Industries AG / Quarter Results

27.05.2009 

Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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ARQUES pursues consistent consolidation strategy in the first quarter
* Further significant reduction in debt 
* Net loss depressed by crisis and non-recurring effects arising from
restructuring measures

Starnberg, May 27, 2009. For ARQUES Industries AG (ISIN DE0005156004), the
first quarter of 2009 was overshadowed by the consequences of the global
recession. At the same time, the streamlining of the portfolio involving
the disposal of a further seven subsidiaries had a significant impact on
the balance sheet and income statement. Thus, the revenues of EUR1,232.7
million recorded in the first three months of 2009 were below the year-ago
figure of EUR1,348.0 million. Earnings (EBITDA) were affected by
non-recurring effects arising from restructuring measures and
deconsolidations, with the negative total of EUR13.7 million far below the
positive earnings of EUR15.3 million reported at this point last year.

As planned, management focused primarily on enhancing the structure of the
balance sheet. ARQUES reduced its financial liabilities by EUR51.4 million
in the first quarter of 2009 to EUR160.6 million, notably by optimizing its
portfolio. At the same time, the balance of cash and cash equivalents
declined from EUR142.4 million at December 31, 2008 to EUR119.7 million at
March 31, 2009. The shareholders' equity of ARQUES Industries AG amounted
to EUR230.3 million at March 31, 2009 after EUR263.0 million at December
31, 2008. The equity ratio remains practically unchanged, at 15.4%.

Major changes in the portfolio of subsidiaries
ARQUES sold a total of seven subsidiaries in the first quarter of 2009. The
company recorded a cash inflow of EUR20 million under the terms of a
portfolio transaction involving the sale of the BEA group of companies, the
news agency ddp, the adhesive tape manufacturer Evotape, and the chemicals
company Rohner. Furthermore, ARQUES disposed of the gas station service
provider Rohé, the vehicle-maker Sommer Road Cargo Solutions, and the
printer weberbenteli. Thus, since mid-2008 ARQUES has disposed of
subsidiaries with aggregate revenues of EUR671.4 million, which together
contributed in 2008 EUR0.7 million to EBITDA in 2008. The British School of
Motoring (BSM) was acquired by ARQUES in February 2009. The transaction led
to negative goodwill (bargain purchase) of EUR10.1 million in the first
quarter.

Economic crisis leads to cash outflow
As a result of the difficult economic conditions, the restructuring
expenses for Gigaset and the build-up of inventories by the subsidiaries,
ARQUES recorded a cash outflow of EUR20.9 million from operating activities
in the first quarter of 2009 (prior year: cash inflow of EUR10.3 million).
At EUR31.2 million, the outflow of free cash was far below the prior-year
inflow of EUR3.9 million.

Foundation laid for reorganizing the ARQUES Group 
'In the first quarter of 2009, we have successfully implemented
wide-ranging consolidation measures aimed at optimizing our portfolio of
subsidiaries and our costs. Building on the foundation we have laid, during
the rest of the year we will press ahead with the reorganization of the
ARQUES Group and implement our original business model while keeping as
tight a rein on risk as possible. Besides refining our existing portfolio
of subsidiaries, we will focus on our core activity of acquiring corporate
spin-offs,' comments ARQUES Industries CFO, Hans Gisbert Ulmke.

Return to profit targeted for 2010
ARQUES will continue to pursue its consistent consolidation strategy of the
last 12 months over the rest of the year. Given persistently difficult
underlying conditions, a net loss is likely to accrue again in the second
quarter. ARQUES' management will continue to focus on reducing debt and
costs. Consolidated revenues in 2009 will be well below the level recorded
in 2008 on account of the reduction in scope of the portfolio of
subsidiaries over the last 15 months. The size of the net result depends
heavily on possible further write-downs. Where these prove necessary,
however, they will be far lower than in the prior year. Alongside the
transactions already conducted in 2009, further exits are in the pipeline
as well as acquisitions. In addition, ARQUES will enhance its cost
efficiency over the rest of the year. The holding company has already been
considerably streamlined, with the goal of reducing the holding costs from
EUR22 million in 2008 to less than EUR10 million. This is intended to put
the company in a position to break even again in 2010, once the current
round of consolidation has been concluded, and to achieve significant
earnings from 2011.

About ARQUES
ARQUES Industries AG, Starnberg (www.arques.de), is a partner for major
corporations in corporate spin-offs and a turnaround specialist
concentrating on the acquisition and active restructuring of companies in
crisis situations in order to turn them into competitive and profitable
companies with a dedicated team and their own efforts. ARQUES revitalizes
its subsidiaries' potential for adding value for the benefit of all of
their stakeholders under consideration of the associated social
responsibility. The shares of ARQUES Industries AG are traded on the
Frankfurt Stock Exchange's Regulated Market (Prime Standard) under the
symbol 'AQU' (ISIN: DE0005156004) and have been listed in the
SDAX.

ARQUES Industries AG
Corporate Communication 
Christian Schneider
Email: schneider@arques.de

Tel.: +49 (0) 8151/ 651 0



DGAP 27.05.2009 
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Language:     English
Issuer:       ARQUES Industries AG
              Münchner Str. 15a
              82319 Starnberg
              Deutschland
Phone:        +49 (0)8151 651-0
Fax:          +49 (0)8151 651- 500
E-mail:       schneider@arques.de
Internet:     www.arques.de
ISIN:         DE0005156004
WKN:          515600
Indices:      SDAX
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, Hamburg, Düsseldorf, München, Stuttgart
 
End of News                                     DGAP News-Service
 
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