Leifheit AG: Leifheit AG succeeds in boosting earnings sharply

Leifheit AG  / Key word(s): Quarter Results11.11.2010 08:38Dissemination of an Ad hoc announcement according to § 15 WpHG, transmittedby DGAP - a company of EquityStory AG.The issuer is solely responsible for the content of this announcement.---------------------------------------------------------------------------- EBIT increased to EUR 6.4 million (previous year: EUR 1.2 million)- Consolidated turnover of EUR 154 million slightly up on previous year(EUR 153 million)- Outlook: 2010 annual results (excluding Bathroom Furnishings) aboveprevious year's levelNote on the comparability of key ratiosLeifheit sold its Bathroom Furnishings division in the second quarter of2010. IFRS require that business in this division be shown separately as'discontinued operations' in the income statement. As a result, the incomestatement shows details only for the continuing operations, comprising theformer Household Products division and the non-allocable area (Groupfunctions). This means that the current key ratios are only partlycomparable with previous year's figures which still included the BathroomFurnishings division. For greater comparability a table in the detailedpress release (www.leifheit.de/en/press/corporate-news.html) and in thefinancial report for the period ending 30 September 2010 (available atwww.leifheit.de/en/investor-relations/publications/financial-reports.html)shows a reconciliation with the figures published in the previous year.Group earnings: Sale of Bathroom Furnishing division already offsetConsolidated Group turnover in the first nine months rose slightly to EUR154 million. In the previous year, the corresponding segments reportedturnover of EUR 153 million. The foreign share was unchanged at 58 %.Consolidated EBIT was EUR 6.4 million, significantly up on the previousyear's level (after adjusting for the sale of the Bathroom Furnishingsdivision - Q1-Q3/2009 EUR 1.2 million) As a result, this year's EBIT willactually exceed the published 2009 EBIT, which was still benefiting fromthe Bathroom Furnishings division (Q1-Q3/2009 with Bathroom Furnishings,EUR 4.3 million). This favourable outcome is due particularly to the growthof its Brand Business segment (Leifheit, Dr. Oetker Bakeware, Soehnle),where Leifheit has achieved significant growth in margins and cost savings.EBT to 30 September 2010 totalled EUR 4.9 million (Q1-Q3/2009, adjusted:EUR -0.4 million).The Net result for the period - unlike the other components in the incomestatement - also includes operating results for the sold BathroomFurnishings division up to the point of deconsolidation and the proceedsfrom the sale of the division. It totalled EUR 13.7 million (Q1-Q3/2009:EUR 0.5 million).Cash flow from operating activities was EUR 4.5 million (Q1-Q3/2009: EUR40.4 million). Cash flow from investment activities of EUR 23.3 millionalso includes the proceeds from the sale of the Bathroom Furnishingsdivision.Business developments in detailAfter the sale of the Bathroom Furnishings division in the second quarterof 2010, the company is now organised in the segments 'Brand Business'(Leifheit, Dr. Oetker Bakeware and Soehnle) and 'Volume Business'(Birambeau and Herby).Brand Business: domestic strengthThe Leifheit, Dr. Oetker Bakeware and Soehnle brands are the basis of theGroup's success. With turnover of EUR 130 million, the brands matched theprevious year (Q1-Q3/2009: EUR 130 million), even though the previousyear's turnover still included EUR 6 million from the ladders business (nowsold). Almost half of this turnover in the first nine months of the currentyear was generated outside Germany. Sales in Austria and the Middle Eastwere particularly successful, while in large parts of Europe (e.g. theNetherlands, Italy, Eastern Europe) the general cautious mood amongconsumers led to declines. Cleaning products were particularly successful,benefiting from the success of the TV campaign for the Twist System.The contribution of Brand Business (which for the first time also included'Group functions') to consolidated EBIT for the period ending 30 September2010 rose significantly to EUR 3.6 million (Q1-Q3/2009: EUR -1.7 million).Volume Business continues to growTurnover of the Volume Business segment, with articles distributed entirelyoutside Germany by Birambeau (kitchen) and Herby (laundry care) grew almost6 % year over year to EUR 24 million (Q1-Q3/2009: EUR 23 million). VolumeBusiness is benefiting from the tight focus on price, specifically in theFrench market. The segment's share in consolidated turnover accordinglyrose slightly to 16 %. Birambeau boosted its turnover in kitchen appliancesby 2 % in the first nine months of 2010, among other reasons because of acampaign business. In the laundry business area, Herby further expanded itscampaign and listing business in France, generating growth of 15 %.The contribution of Volume Business to consolidated EBIT for the periodending 30 September 2010 fell minimally to EUR 2.8 million (Q1-Q3/2009: EUR2.9 million).Outlook: annual results expected to exceed previous year By end-2010 the company expects turnover to slightly exceed 2009 levels forthe comparable segments. For the year-end, we are including twononrecurring effects - the rise in results in the fourth quarter will berelatively moderate compared with the rest of the year, as the first halfincluded the proceeds from the sale of the Bathroom Furnishings division,and consolidated results will also be affected by currency hedgingtransactions. Excluding the possible currency effects, the Board ofManagement is confident that the annual result for 2010 will actuallyexceed the previous year's level of EUR 3.1 million, which also includedthe results of the Bathroom Furnishings division.Additional information is available in the financial report for periodending 30 September 2010.Contact:Leifheit AGD-56377 +49 2604 97721811.11.2010 DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.Media archive at www.dgap-medientreff.de and www.dgap.de--------------------------------------------------------------------------- Language:     EnglishCompany:      Leifheit AG              Leifheitstraße              56377 Nassau              DeutschlandPhone:        02604 977-0Fax:          02604 977-340E-mail:       :     www.leifheit.comISIN:         DE0006464506WKN:          646450Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr              in Hamburg, München, Berlin, Düsseldorf, Hannover, Stuttgart End of Announcement                             DGAP News-Service ---------------------------------------------------------------------------