Hunter Douglas first half year 2009 results

Rotterdam, August 11, 2009 – Hunter Douglas, the world market leader in window coverings (Luxaflex®) and a major manufacturer of architectural products, first half year 2009 results:

. Sales: 28.1% lower to USD 1,128.1 million compared with USD 1,569.0 million in the first half of 2008.

. Earnings before interest, tax, depreciation and amortization - EBITDA (before non-recurring restructuring expenses) were USD 68.8 million compared with USD 154.4 million in the first half of 2008.

. Income from Operations (before non-recurring restructuring expenses): USD 19.4 million compared with USD 105.3 million in the first half of 2008; all areas had positive results, although lower than last year.

. Net Profit from Operations (before non-recurring restructuring expenses): USD 24.1 million (per share EUR 0.51) compared with USD 96.0 million in the first half of 2008 (per share EUR 1.58).

. Non-recurring restructuring expenses in 2009 were USD 13.3 million. These relate to the North American operations.

. Net profit from Operations (after non-recurring restructuring expenses): USD 10.8 million (per share EUR 0.23) compared with USD 96.0 million in the first half of 2008 (per share EUR 1.58).

. Net Result Investment Portfolio: USD 5.6 million negative (after deduction of imputed interest and expenses) compared with USD 57.8 million negative in the first half of 2008.

. Total Net Result: USD 5.2 million (per share EUR 0.11) compared with USD 38.2 million in the first half of 2008 (per share EUR 0.63).

Sales: The 28.1% sales decrease reflects a 17.7% volume decrease, a 0.3% increase from acquisitions and a 10.7% negative currency impact. Volume declined in all areas except Latin America where sales were higher.

Europe accounted for 43% of sales, North America 38%, Latin America 7%, Asia 8% and Australia 4%. Window Coverings were 81% and Architectural and Other Products were 19% of sales.

Net Result Investment Portfolio: The Portfolio's return in U.S. dollars (before imputed interest and expenses) was 0.9% negative compared with 4.9% negative in the first half of 2008. The Portfolio had a fair value per June 30, 2009 of USD 150 million compared with USD 265 million on December 31, 2008. The Portfolio will be further reduced to about USD 100 million per December 31, 2009. Management of these assets is delegated to a widely diversified range of independent managers.

Operating cash flow: USD 119.0 million compared with USD 22.8 million in the first half of 2008.

Capital expenditures were USD 27 million compared with USD 65 million in the first half of 2008, while depreciation was USD 47 million, compared with USD 46 million in the first half of 2008. For the full year capital expenditures are expected to be approximately USD 50 million and depreciation USD 91 million .

Shareholder's equity was USD 1,275 million compared with USD 1,272 million at the end of 2008, reflecting the dividend payment of USD 50 million, offset by the first half year results and positive exchange translation.

Financing: All borrowings are covered by committed long term facilities.

Second quarter 2009

Q2 Sales were USD 629.3 million, 25.6% lower than USD 845.7 million in the same period of 2008. The decrease reflects a 16.3% volume decrease, an 0.3% contribution from acquisitions and a negative currency impact of 9.6%. Second quarter organic sales were higher in Latin America and Asia and lower elsewhere.

Q2 Earnings before interest, tax, depreciation and amortization - EBITDA (before non-recurring restructuring expenses) was USD 66.0 million, 33.9% lower than USD 99.8 million in Q2 2008.

Q2 Income from Operations (before non-recurring restructuring expenses) was USD 37.9 million, 47.9% lower than USD 72.8 million in Q2 2008. In local currencies all areas had positive results, although lower than last year.

Q2 Net Profit from Operations (before non-recurring restructuring expenses): 47.7% lower to USD 37.8 million (per share EUR 0.81) compared with USD 72.3 million in Q2 2008 (per share EUR 1.21).

Q2 Non-recurring restructuring expenses were USD 11.0 million and relate to North America.

Q2 Net profit from Operations (after non-recurring restructuring expenses): USD 26.8 million (per share EUR 0.57) compared with USD 72.3 million in Q2 2008 (per share EUR 1.21).

Q2 Net Result Investment portfolio was USD 4.1 million (after deduction of imputed interest and expenses) compared with USD 2.7 million negative in the second quarter of 2008. The Portfolio's return in U.S. dollars in Q2 of 2009 (before imputed interest and expenses) was 3.0% compared with 0.5% in Q2 of 2008.

Q2 Total Net Result: USD 30.9 million (per share EUR 0.66) compared with USD 69.6 million in Q2 2008 (per share EUR1.12).

First half year 2009 by Region

Europe
European sales were USD 490 million, 32% lower than USD 719 million in the same period last year. This reflects a 16% volume decrease and a 16% negative currency impact. In EUR, sales decreased by 23% to EUR 363 million compared with EUR 469 million in 2008.

North America
North American sales decreased by 28% to USD 433 million, reflecting a 25% volume decrease and a 3% negative currency impact.

Latin America
Latin American sales were USD 79 million, 19% lower than USD 98 million in the same period last year. The sales decrease reflects a 3% volume increase and a 22% negative currency impact.

Asia
Asian sales were USD 84 million, 10% lower than USD 93 million in the same period last year. The sales decrease reflects a 9% volume decrease and a 1% negative currency impact. Second half year sales are expected to increase substantially.

Australia
Australian sales were USD 42 million compared with USD 58 million in the same period last year reflecting a 14% volume decrease, a 7% contribution from acquisitions and a 21% negative currency impact

Outlook
Though the financial crisis is subsiding, consumer demand remains weak in many of Hunter Douglas' main markets. While the decline in sales has stabilized, the Company continues to adjust its operations to present business levels and difficult ongoing economic conditions.

Hunter Douglas remains in a strong position in terms of its products, distribution, finances and management.

Profile Hunter Douglas
Hunter Douglas is the world market leader in window coverings and a major manufacturer of architectural products. The Company has its Head Office in Rotterdam, The Netherlands, and a Management Office in Lucerne, Switzerland. The Group is comprised of 162 companies with 67 manufacturing and 95 assembly operations in more than 100 countries. Hunter Douglas employs about 17,500 people, and had sales in 2008 of USD 2.942 billion.

The common shares of Hunter Douglas N.V. are traded on Amsterdam's Euronext and the Deutsche Boerse.

The consolidated first half year report prepared in accordance with IAS 34 is available on our website www.hunterdouglasgroup.com.

For further information:
Leen Reijtenbagh
Chief Financial Officer
Tel. +31 10 486 9582
E-mail : l.reijtenbagh@hdnv.nl
Website: www.hunterdouglasgroup.com

A consolidated Statement of Income for the first half year and Q2 (Annex 1 + 2), Balance Sheet (Annex 3), Cash Flow Statement (Annex 4) and Sales change attribution percentages by geographic region for the first half year and Q2 (Annex 5) are attached.  

 

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