Bremer Woll-Kämmerei AG
BREMER WOLL-KÄMMEREI AG: Interim report on the business year 2003
Ad-hoc-announcement transmitted by DGAP.
The issuer is solely responsible for the content of this announcement.
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Interim report on the business year 2003
Dear Shareholders,
The Board informs you that the BWK Group will report a loss of EUR 36.3 million
according to IFRS for the financial year 2003, including a loss from non-
recurring items totalling EUR 17.1 million. Adopting a pre-cautionary approach,
deferred tax benefits have not been included in the results of the combing
operations for the year. This would have resulted in a reduction of the loss by
EUR 6.4 million.
There are several factors causing this disappointing result. Firstly, the
closure of the Geelong Wool Combing plant (GWC) was forced on us by a prolonged
labour dispute brought about by the uncompromising attitude of the relevant
Australian labour union regarding more flexible working hours along the lines of
the arrangement in place at Austops. In October 2003 BWK Management decided to
close GWC. The necessary provisions and one-off costs impacted the annual
result by EUR 15.9 million.
Further one off costs include required provisions for personnel restructing
measures at the Bremen mill in the amount of EUR 1.2 million.
Secondly, the worldwide textile market has experienced a dramatic drop in
consumption which impacted on the already weak demand for wool tops in an
industry plagued with overcapacity. In addition, the SARS crisis in the first
quarter nearly paralyzed the Asiatic textile market for several months. Although
more than 80 million kg top production was removed out of the global market in
the course of the year, the combing tariffs were still at the lowest level for
the last ten years.
This also resulted in losses being incurred in the combing mill in Bremen and at
Australian Topmaking Services Ltd. (Austop) in Parkes, Australia. Our mill in
Turkey achieved a balanced result in 2003.
BWK Elders, our joint venture trading companies in Bremen and in Adelaide,
Australia, in which BWK AG participates each to 50%, also contributed negatively
to the result. The main reason was the subdued demand in the falling market
resulting in pressure on margins.
The New Zealand trading company J.S. Brooksbank & Co. (Australasia) Ltd.,
Wellington, was able to continue the good results of the past. As the biggest
exporter of greasy wool in New Zealand, this trading company benefited in
particular from the stable demand for carpet wools and upholstery fabrics.
As in the past the man made fibre business in Bremen and BREWA Umweltservice
GmbH, Bremen, produced another profitable operating result.
The rebuild of the Bremen plant proceeded as scheduled and will be completed
shortly. The rebuild will reduce conversion costs and increase production
yields, making the company more competitive. The benefits will become effective
in the second half of 2004.
We remain confident about the future prospects for wool. After the strong price
decreases of the last months wool is now a more competitive fibre than over the
past 18 months. Recent fashion collections are showing signs of a return to
wool.
BWK Management together with the Elders Group continues to pursue the integrated
Wool Supply Chain Strategy and remains focussed on further improvements across
all of its businesses.
On 18 February 2004 the Supervisory Board of the Bremer Woll-Kämmerei AG agreed
unanimously to reduce the number of Vorstand members from three to two with
effect of 1st March 2004. Mr. Leigh Schmitt retires with the termination of his
contract as Vorstand of BWK AG and Mr. Les Wozniczka steps back to concentrate
on his role as CEO of Futuris Corporation Ltd.. During the same meeting Mr.
Trevor Thiele was appointed as member of the Vorstand being responsible for
Finance and Controlling with effect of 1st March 2004.
The annual accounts of BWK Group and BWK AG will be approved at the Supervisory
Board meeting in the mid of April 2004. The press conference on the Financial
Statements is planned for the 21st April 2004. The Annual General Meeting takes
places in Bremen on the 1st July 2004.
Bremen, March 2004
The Board of Management
Günther Beier Trevor Thiele
end of ad-hoc-announcement (c)DGAP 24.03.2004
Issuer’s information/explanatory remarks concerning this ad-hoc-announcement:
Key Data BWK Group
Income Statement
preliminary 12 months ended
T EUR 2003 T EUR 2002
Sales revenues 122 452 127 871
Of which European Combing 44 854 48 090
Australian Combing and Logistics 10 659 16 936
Global Wool Trading 65 224 62 845
Other Business 1 715 –
Inventory changes and
other own work capitalised 188 – 781
Total performance 122 640 127 090
Other operating income 3 279 17 714
Raw materials and consumables – 90 291 – 86 906
Personnel costs – 26 586 – 26 152
Depreciation – 18 690 – 7 809
Other operating expenses – 14 867 – 19 554
Financial result – 8 738 – 3 174
Taxes – 3 024 1 017
Share of result accounted for
by minority shareholders 1 22
Result – 36 276 2 248
Balance sheet Preliminary
T EUR 31.12.2003 TEUR 31.12.2002
Fixed assets 82 720 96 874
Inventories 19 122 26 708
Other current assets 19 986 40 287
Balance sheet total 121 828 163 869
Liabilities 83 409 89 527
Reserves 17 807 20 298
Equity capital 20 582 54 013
Stocks held by other shareholders 30 31
Balance sheet total 121 828 163 869
Key data Preliminary
31.12.2003 31.12.2002
Cash-Flow TEUR – 6 516 96
Investments TEUR 3 576 11 199
Employees (as of 31.12.) 481 612
BREMER WOLL-KÄMMEREI AG
Postfach 710180, D-28761 Bremen, Tel.: (49) 0421/6091-0,
Fax: (49) 0421/6091600 Telex: 244482 bwkd,
e-mail: info@bwk-bremen.de, Internet: http://www.bwk-bremen.de
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WKN: 527 200; ISIN: DE0005272009; Index:
Listed: Amtlicher Markt in Berlin-Bremen, Frankfurt (General Standard), Hamburg,
Hannover und München; Freiverkehr in Stuttgart
241957 Mär 04
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