Bremer Woll-Kämmerei AG
Bremer Woll-Kämmerei AG: Interim report on the business year 2004
Ad hoc announcement §15 WpHG
Interim report 2004
Bremer Woll-Kämmerei AG: Interim report on the business year 2004
Ad hoc announcement transmitted by DGAP.
The issuer is solely responsible for the content of this announcement.
——————————————————————————
Interim report on the business year 2004
The result of the BWK Group in the business year 2004 based on IFRS accounting
principles was a loss of EUR 23.7 million (prior year: – EUR 36.3 million).
Losses from ongoing operations totalled EUR 14.8 million caused by the
extremely difficult situation in the textile market in general and in the wool
market in particular. In addition net non-recurring losses and expenses in
the amount of EUR 8.9 million were incurred in the year. The non-recurring
losses and expenses include an amount of EUR 6.4 million which is related to
the Australian company BWK Holdings Pty. Ltd. (BWK H) and mainly represents
the write-down of the assets of BWK H. As part of the restructuring package
BWK H will be sold after balance date to our main shareholder Elders for EUR
5.0 million, substantiated by a valuation of an independent auditing company.
The valuation reflects the ongoing difficult situation of the textile industry
and the effects of the low combing tariffs being offered in Asia. It must be
noted that the benefits from the capital restructure negotiated by the Board
of Management with the banks and the main shareholder are not yet contained in
the balance sheet of BWK AG as of the end of 2004. The capital reconstruction
was formally completed when the capital increase was written into the
commercial register on 12th January 2005. Since that day, the capital stock of
BWK AG has increased by Euro 21,570,384.00 to Euro 26,181,253.00.
Please address any queries to Mr Günther Beier 0421/60 91-304 or
Mr Thomas Bolte Tel: 0421/60 91-205
Board of Management of the Bremer Woll-Kämmerei AG:
Günther Beier, Chairman; Trevor Thiele
BREMER WOLL-KÄMMEREI AG; Postbox 71 01 80; D-28761 Bremen
e-mail:info@bwk-bremen.de; Internet:http://www.bwk-bremen.de
Bremer Woll-Kämmerei AG
Landrat-Christians-Straße 95
28779 Bremen
Deutschland
ISIN: DE000A0BVXQ0
WKN: A0BVXQ
Listed: Geregelter Markt in Berlin-Bremen; Freiverkehr in Frankfurt und
München
End of ad hoc announcement (c)DGAP 22.02.2005
Issuer’s information/explanatory remarks concerning this ad hoc announcement:
Interim report on the business year 2004
Dear Shareholder,
The Board of Management informs you that the global wool combing industry
experienced further reductions in production capacity during the past 12
months, with some plants ceasing operations completely, whilst others have
shut down combing lines. And although the demand for tops has increased
slightly, there is still an overcapacity of combing machinery with the result
that combing tariffs could not be raised to profitable levels. BWK Group’s
poor operating result of the past business year is attributable to the low
demand for wool, which resulted in continuing low returns in the combing
plants. Sales revenues of the BWK Group in the period covered by this report
totalled EUR 100.9 million and were thus substantially lower than the prior
year level (EUR 122.5 million). Notwithstanding a contraction in the global
market in 2004, BWK Group volumes were steady compared to the prior year
resulting in an increased market share. Lower greasy wool prices were the main
reason for the decline in sales revenue with the average EURO price for
greasy wool during the year being 17% lower on annual average than in 2003.
Due to the adverse market conditions and in particular the poor combing
tariffs referred to above, the results of all three combing plants of the
Group were negative. The wool trading companies BWK Elders Europe GmbH and BWK
Elders Australia Pty. Ltd. are each owned 50% at balance date and their
results are included in the consolidated result in accordance with the equity
method. These companies made negative contributions to earnings in an amount
of EUR 3.1 million due to the difficult market conditions. Although the
restructuring of each business at the beginning of the year brought the
expected organisational streamlining and improvement in results, it was not
possible to return to a profit in the ongoing difficult market. As in the
preceding years, the New Zealand subsidiary company J.S. Brooksbank made a
satisfactory profit.
The man-made fibres department again made a positive contribution to the
result as in past years. The result was negatively effected through sales
contracts that were concluded on a US Dollar basis due to the strengthening
Euro. The wholly-owned subsidiary BREWA Umwelt-Service GmbH achieved an almost
break-even result. The 50% stake in the power plant HKW Blumenthal GmbH
returned a slightly negative result due to the conversion costs. As a result
of the non-recurring expenses and the losses from operating business, the
balance sheet of BWK AG on the basis of HGB accounting principles as of 31st
December 2004 showed negative shareholders’ equity in an amount of EUR 7.5
million. It must be noted that the benefits from the capital restructure
negotiated by the Board of Management with the banks and the main shareholder
are not yet contained in the balance sheet of BWK AG as of the end of 2004.
Taking into account the reconstruction contributions, the negative
shareholders’ equity is however more than compensated, so that no technical
over indebtedness existed and BWK AG could therefore continue to operate as a
going concern. For the year 2005, the management expects an improved result in
comparison with the prior year, due to the benefits of the restructure.
However, sustained improvement in the demand for wool and combing tariffs is
necessary for a return to profitable operations. From the middle of the year
the management expects an improved cost situation for Bremen, because then the
combined heating and power plant that has been converted to run on substitute
fuels will be supplying energy at lower costs. BWK AG anticipates that an
agreement can be made with the labour unions in respect of the contribution of
the employees to the reconstruction. The annual financial statements of the
BWK Group and of BWK AG will be formally adopted at the meeting of the
Supervisory Board in mid-April 2005. The Annual General Meeting of the
shareholders is scheduled for mid-2005 in Bremen.
Bremen, February 2005, The Board of Management: Günther Beier; Trevor Thiele
Key Data BWK Group
Income statement preliminary TEUR 2004 TEUR 2003
Sales revenues 100 918 122 452
of which European combing plants 40 389 44 854
Australian combing plants and logistics 8 997 10 659
World-wide wool trading 50 466 65 224
Other business 1 066 1 715
Inventory changes and other own work capitalised – 458 188
Total performance 100 460 122 640
Other operating income 7 256 3 279
Raw materials and consumables – 73 400 – 90 291
Personnel costs – 20 130 – 26 586
Amortisation and depreciation – 14 333 – 18 690
Other operating expenses – 16 333 – 14 867
Financial result – 6 983 – 8 738
Taxes on income and revenue – 235 – 3 024
Share of minority shareholders in the result 15 1
Net result – 23 683 – 36 276
Balance sheet preliminary TEUR 31.12.2004 TEUR 31.12.2003
Fixed assets 66 590 82 720
Inventories 19 791 19 122
Other current assets 21 545 19 986
Balance sheet total 107 926 121 828
Liabilities 96 814 83 409
Provisions for liabilities and charges 14 652 17 807
Shareholders’ equity – 3 555 20 582
Stock held by other shareholders 15 30
Balance sheet total 107 926 121 828
Key ratios preliminary 31.12.2004 31.12.2003
Cash flow TEUR – 674 – 7 856
Investments TEUR 5 055 3 381
Personnel (as of 31.12,) 421 481
End of message (c)DGAP
221938 Feb 05
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