DGAP-News: A.S. Création reports weak earnings performance in Q3 2011

DGAP-News: A.S. Création Tapeten AG / Key word(s): Quarter Results
A.S. Création reports weak earnings performance in Q3 2011

03.11.2011 / 08:41

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A.S. Création Tapeten AG, Gummersbach
(ISIN DE0005079909)

A.S. Création reports weak earnings performance in Q3 2011 

A.S. Création Tapeten AG, Europe's leading wallpaper manufacturer, has
today published the interim report on the nine-month period ended September
30, 2011. A summary is provided below:

Sales at record level
The A.S. Création Group increased its sales revenues by 6.1% in the third
quarter of 2011. The company thus continued the good performance of the
first half of 2011, when sales rose by 5.7%. All told, the A.S. Création
Group realised sales of EUR 146.6 million in the first nine months of 2011,
up 5.8% on the prior-year's figure of EUR 138.5 million and marking a new
record in the company's history. Growth has primarily been driven by
Germany and non-EU Eastern European countries. The Managing Board regards
the good sales performance as a vindication of its own strategy of
continuing to develop the product range and the marketing concepts even
when faced with a challenging economic environment.

Adverse impacts on earnings higher than expected
In spite of the sales growth, earnings fell short of expectations,
especially in the third quarter. Net profit for the first nine months
totalled EUR 4.6 million, down 32.1% on the previous year's EUR 6.7
million. This decline was much higher than provided for in the full-year
budget for 2011, which assumes a decline by between 10.7% and 22.6% in
consolidated net profit to between EUR 6.5 million and EUR 7.5 million.
This was primarily attributable to the sharp rise in commodity and energy
costs. From today's point of view, the price increases implemented for
parts of the product range effective March 1, 2011 were insufficient. At
46.0%, the gross profit margin was therefore below the prior year level of
48.7%. Based on the total output of EUR 148.5 million in the first nine
months of 2011, this translates into a gross profit shortfall of EUR 4.0
million. The start-up costs incurred in conjunction with the construction
of the Russian production facility also weighed on the bottom line.

Projections for full year 2011 confirmed only partially 
The macroeconomic environment in the EU, the largest output market of A.S.
Création, is currently being influenced by the euro crisis and the
discussion of recession scenarios. In some countries, this has already had
an adverse impact on private consumption. In spite of these uncertainties,
the Managing Board believes that, building on its strong product range, the
company will be able to increase its sales revenues also in the last
quarter, which means that consolidated sales in the full year 2011 would be
in line with plans, i.e. between EUR 195 million and EUR 205 million. Due
to the unexpectedly poor earnings performance in the third quarter, the
Managing Board believes, however, that net profit for the full year 2011
will be below the projected range of EUR 6.5 million to EUR 7.5 million.
The amount by which the earnings target will be missed largely depends on
the sales revenues generated in the fourth quarter of 2011 and on the trend
in average sales prices. As new collections are launched in the market, a
positive effect on average sales prices is possible.
 
The Managing Board is convinced that sufficient profitability is an
important precondition for sustainable company growth, as it is the only
way to finance the necessary capital expenditures in replacements and new
capacity in the long term. In view of the deterioration in earnings
described above, A.S. Création Tapeten AG has therefore announced an
increase in its sales prices with effect from February 1, 2012. Another
focus will be on the ongoing optimisation of the internal cost structures.

The Group's key figures for the first nine months of 2011 are summarised
below:

<pre>

                                               01.01.     01.01.   Change
                                              -30.09.    -30.09.
                                                2011       2010
Sales                              EUR '000   146,602    138,540      5.8%
Earnings before interest and taxes EUR '000     8,474     11,247   - 24.7%
 (EBIT) 
Earnings before income taxes       EUR '000     6,989      9,859   - 29.1%
Net profit                         EUR '000     4,581      6,748   - 32.1%
Earnings per share                EUR/share      1.66       2.45   - 32.2%
Cash flow                          EUR '000    11,667     14,034   - 16.9%
Capital expenditures               EUR '000    16,735      5,106    227.8%
Depreciation                       EUR '000     7,558      7,577   -  0.3%
Number of employees (average)                     792        772      2.6%

</pre>

Gummersbach, November 3, 2011

A.S. Création Tapeten AG

The Managing Board

The full interim report is available at
www.as-creation.de 
or from
A.S. Création Tapeten AG
Mrs. Börngen
Südstr. 47
D - 51645 Gummersbach
phone +49-22 61-542 350
e-mail investor@as-creation.de

Contact:
Maik Krämer
Vorstand Finanzen
Südstr. 47
D-51645 Gummersbach
Telefon + 49 - (0)22 61/542-387
Fax + 49 - (0)22 61/542-304
E-Mail: m.kraemer@as-creation.de


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Language:    English                                               
Company:     A.S. Création Tapeten AG                              
             Südstraße 47                                          
             51645 Gummersbach                                     
             Germany                                               
Phone:       +49 22 61 54 2-0                                      
Fax:         +49 22 61 54 2-3 04                                   
E-mail:      investor@as-creation.de                               
Internet:    http://www.as-creation.de                             
ISIN:        DE0005079909                                          
WKN:         507990                                                
Listed:      Regulierter Markt in Frankfurt (Prime Standard);      
             Freiverkehr in Berlin, Düsseldorf, Hamburg, München,  
             Stuttgart                                             
 
 
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