Hunter Douglas First Quarter 2007 Results

Rotterdam, May 9, 2007 – Hunter Douglas, the world market leader in window coverings (Luxaflex®) and a major manufacturer of architectural products (Luxalon®) results for Q1 2007:

  • Sales: 14.5% higher to USD 667.5 million; compared with USD 583.2 million in Q1 2006.
     
  • Income from Operations: 7.5% higher to USD 53.0 million;
    compared with USD 49.3 million in Q1 2006. 
  • Net Profit from Operations: 34.2% higher to USD 42.8 million,
    compared with USD 31.9 million in Q1 2006
  •  Net Profit Investment Portfolio: USD 22.3 million;
    compared with USD 32.7 million in Q1 2006.  

Total Net Profit:
USD 65.1 million; compared with USD 64.6 million in Q1 2006.

Sales in Q1 were USD 667.5 million, 14.5% higher than USD 583.2 million in the first quarter of 2006. The sales increase reflects a 5.0% volume increase, a 5.6% increase from acquisitions (net of divestments) and a 3.9% positive currency impact. All geographic areas had organic growth, except North America.

Europe accounted for 43% of sales, North America 42%, Latin America 6%, Asia 5% and Australia 4%. Window Coverings were 87% and Architectural and Other Products were 13% of total sales.

Income from operations in Q1 was USD 53.0 million, 7.5% higher than USD 49.3 million in the first quarter of 2006. Income from operations was higher in all areas, except North America and Australia.

Net Profit from Operations in Q1 was USD 42.8 million, 34.2% higher than USD 31.9 million in the first quarter of 2006. Net profit from operations was higher in all areas, except North America and Australia.

Net profit investment portfolio in Q1 was USD 22.3 million (after deduction of imputed interest and expenses) compared with USD 32.7 million in the first quarter of 2006. The investment portfolio had a fair value on March 31, 2007, of USD 835 million compared with USD 771 million at the end of December 2006. The Portfolio's return in USD (before imputed interest and expenses) was 4.3%. Management of these assets is delegated to a widely diversified range of independent managers.

Total net profit in Q1 was USD 65.1 million, compared with USD 64.6 million in the first quarter of 2006. Net profit per average outstanding common share was USD 1.55 (EUR 1.18), compared with USD 1.54 (EUR 1.29) in the first quarter of 2006.

Acquisitions

Vista Products, a Florida based fabricator of window coverings employing 300 people was acquired in January. The company had sales of USD 28 mln in 2006.

3-Form, a Salt Lake City, U.S.A. based manufacturer of architectural products employing 310 people was acquired in March. 3-Form is a fast growing pioneer of decorative resin panels used for architectural applications. The company had sales of USD 48 mln in 2006.

Change of Reporting Currency

Hunter Douglas has changed its reporting currency as from the full year 2006 from Euros to U.S. dollars. This will better reflect the performance of the business as operational sales and profits and the Investment Portfolio are predominantly U.S. dollar related. For comparative purposes the first quarter results are reported both in U.S. dollars and Euros for 2007 and 2006.

Outlook

Hunter Douglas remains cautious about the outlook for 2007 compared with the record 2006 results, considering slower North American sales which are affected by the decline in the US housing market.

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 168 companies with 66 manufacturing and 102 assembly operations in more than 100 countries. Hunter Douglas employs about 20,000 people, and had sales in 2006 of USD 2.630 billion.

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

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

A consolidated Statement of Income for the first quarter of 2007 (Annex 1), Balance Sheet per March 31, 2007 (Annex 2), and Sales change attribution percentages by geographic region for the first quarter 2007 are attached.

  • CONSOLIDATED STATEMENT OF INCOME (Annex 1)

  • BALANCE SHEET (Annex 2)

  • PERCENTAGE SALES CHANGE ATTRIBUTION  (Annex 3)
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