ARQUES Industries AG / Half Year Results
20.08.2009
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 has reduced its financial debt by around 30% since the end of 2008
* Second-quarter EBITDA of EUR -2.3 million represents a significant
improvement over the first quarter
* Earnings were weighed down by impairments from portfolio streamlining
measures
* The balance sheet structure was substantially improved in Q3 after the
sales of Actebis and tiscon
* Uncertain outlook, early signs of economic recovery
Starnberg, August 20, 2009. Although ARQUES Industries AG (ISIN
DE0005156004) was still heavily affected by the repercussions of the global
recession in the second quarter of 2009, the company managed to improve its
EBITDA substantially from the first quarter (EUR -13.7 million) to EUR -2.3
million. The EBITDA for the first six months was EUR -16.0 million (H1
2008: EUR 45.2 million). As announced, ARQUES was clearly focused on
reducing its debts and streamlining its portfolio in the first half of
2009. In particular, the financial liabilities were reduced by around 30%
from year-end 2008 to EUR 150.3 million. All together, ARQUES has divested
nine subsidiaries since the beginning of the year, which gave rise to
significant impairments and therefore reduced the earnings indicators below
the level of EBITDA. The sale of the Actebis Group has not yet been
completed; that is expected to happen in late September or early October.
The disposal of the investments in Actebis and tiscon at the start of the
third quarter will lead to a further substantial improvement in the balance
structure and further limit the Group's risk exposure, in accordance with
its goal. The first signs of an economic recovery, which are increasingly
having a positive impact on the orders of the ARQUES subsidiaries, will
likely show up in the Group's operating earnings only in fiscal year 2010.
'In the first half of 2009, the ARQUES Group made great progress towards
the goal of operational and financial consolidation. The 30% reduction in
financial debts and the comprehensive streamlining of the Group's portfolio
of subsidiaries had the effect of significantly limiting the Group's risks.
We will continue on this path in the second half. In view of the growing
signs of gradual economic recovery, we are hoping for significant positive
developments starting in fiscal year 2010,' said Hans-Gisbert Ulmke,
Chairman of the Executive Board of ARQUES Industries AG.
Optimization of the Group's portfolio of subsidiaries gives rise to
significant non-recurring effects
At EUR 9.7 million, the bargain purchase revenues (from negative purchase
prices) in the first six months of 2009 were about on the level of the
prior-year period. The sale of investments in the Actebis Group and in
tiscon AG in the third quarter gave rise to additional impairments, which
added up to about EUR 52.2 million in the first half of 2009. At June 30,
2009, therefore, ARQUES posted a net loss after taxes of EUR -115.4 million
(H1 2008: EUR -36.3 million).
Balance sheet structure improved after sale of Actebis
The sale of the Actebis Group will lead to a significant further
improvement in the balance sheet structure. Furthermore, EUR 37.8 million
in purchase price guarantees will be assumed by the buyer. Due to various
factors such as the generally tough economic environment, the restructuring
expenses for Gigaset and the increased inventories of the subsidiaries, the
cash flow from operating activities was negative in the first half of 2009,
at EUR - 42.5 million (H1 2008: positive cash flow of EUR 97.8 million).
Accordingly, the free cash flow of EUR -66.0 million was likewise well
below the corresponding year-ago figure of EUR 79.8 million.
Break-even point aimed for in 2010
The year 2009 is a year of consolidation for ARQUES Industries AG. In the
first half of the year, we focused our activities on stabilizing cash flows
and reducing risks in our portfolio of subsidiaries. Despite great
restructuring progress in the individual companies, we could not achieve
our earnings targets due to the sharp fall-off in demand for the respective
products, which was caused by the general state of the economy. Because
banks, credit insurance companies and factoring companies continued to
adopt a restrictive stance, ARQUES was compelled to dispose of certain
subsidiaries for less than their book values. Also in the area of
acquisitions, ARQUES is taking a much more conservative and risk-averse
approach than in the preceding years. Nonetheless, the Group is studying
interesting opportunities at the present time.
While the risk profile of ARQUES Industries has improved appreciably, a
reliable forecast of developments in the second half of 2009 is not
possible at this time. Early signs of an economic recovery, which are
increasingly having a positive effect on the orders of the subsidiaries,
will likely not show up in the Group's operating earnings until starting in
2010. If the economic recovery trend were to continue (especially in the
automotive industry), the Group's stated goal is to reach the break-even
point in the coming fiscal year.
The complete quarterly report, as well additional information about ARQUES
Industries AG, can be found at the company's website www.arques.de
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 20.08.2009
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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, Düsseldorf, München, Hamburg, Stuttgart
End of News DGAP News-Service
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DGAP-News: ARQUES has reduced its financial debt by around 30% since the end of 2008
| Source: EQS Group AG