Hunter Douglas nine months 2010 results

Rotterdam, November 2, 2010 – Hunter Douglas, the world market leader in window coverings (Luxaflex®) and a major manufacturer of architectural products, nine months 2010 results:

. Sales: 3.9% higher to USD 1,802.3 million compared with USD 1,735.2 million in the first nine months of 2009.

. Earnings before interest, tax, depreciation and amortization - EBITDA (before non-recurring restructuring expenses) were USD 186.7 million, 49.2% higher than USD 125.1 million in the first nine months of 2009.

. Income from Operations (before non-recurring restructuring expenses): USD 119.8 million compared with USD 53.4 million in the first nine months of 2009. In local currencies all areas had better results than last year, except Latin America where results were slightly lower.

. Net Profit from Operations (before non-recurring restructuring expenses): USD 114.9 million (per share EUR 2.45) compared with USD 56.6 million in the first nine months of 2009 (per share EUR 1.16).

. Non-recurring restructuring expenses were USD 4.3 million compared with USD 15.9 million in the first nine months of 2009. The 2010 non-recurring restructuring expenses relate to the European and Asian operations.

. Net profit from Operations (after non-recurring restructuring expenses): USD 110.6 million (per share EUR 2.35) compared with USD 40.7 million in the first nine months of 2009 (per share EUR 0.84).

. Net Result Investment Portfolio: USD 4.1 million positive (after deduction of imputed interest and expenses) compared with USD 1.1 million negative in the first nine months of 2009.

. Total Net Profit: USD 114.7 million (per share EUR 2.44) compared with USD 39.6 million in the first nine months of 2009 (per share EUR 0.81).

Sales: The 3.9% sales increase reflects a 0.3% volume increase, a 2.3% increase from acquisitions and a 1.3% positive currency impact. Volume increased in all areas except Europe and Australia where sales declined.

Europe accounted for 40% of sales, North America 40%, Latin America 8%, Asia 8% and Australia 4%. Window Coverings were 83% and Architectural and Other Products were 17% of sales.

Net Result Investment Portfolio: The Portfolio's return in U.S. dollars (before imputed interest and expenses) was 6.2% positive compared with 2.5% positive in the first nine months of 2009. The Portfolio had a fair value per September 30, 2010 of USD 135 million compared with USD 144 million on December 31, 2009. Management of these assets is delegated to a widely diversified range of independent managers.

Operating cash flow: USD 125.2 million compared with USD 229.5 million in the first nine months of 2009 when there was a substantial reduction of inventory as part of the restructuring program.

Capital expenditures were USD 44 million compared with USD 45 million in the first nine months of 2009, while depreciation was USD 62 million, compared with USD 68 million in the first nine months of 2009. For the full year capital expenditures are expected to be approximately USD 75 million and depreciation USD 85 million .

Shareholder's equity was USD 1,097 million compared with USD 1,372 million at the end of 2009, reflecting the payment of a normal dividend of EUR 1.00 per share and an extra dividend of EUR 7.00 per share, for in total USD 345 million and negative exchange translation, offset by the first nine months results.

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

Q3 2010

Q3 Sales were USD 638.1 million, 5.1% higher than USD 607.1 million in the same period of 2009. The increase reflects a 2.9% volume increase, a 3.7% contribution from acquisitions and a negative currency impact of 1.5%. Third quarter local currency sales were higher in North America, Europe and Latin America and lower in Asia and Australia.

Q3 Earnings before interest, tax, depreciation and amortization - EBITDA (before non-recurring restructuring expenses) was USD 77.5 million, 37.7% higher than USD 56.3 million in Q3 2009.

Q3 Income from Operations (before non-recurring restructuring expenses) was USD 55.2 million, 62.4% higher than USD 34.0 million in Q3 2009. In local currencies all areas had better results than last year except Asia where results were lower because of delays in major projects.

Q3 Net Profit from Operations (before non-recurring restructuring expenses): was USD 46.2 million (per share EUR 0.99), 42.2% higher than USD 32.5 million in Q3 2009 (per share EUR 0.66).

Q3 Non-recurring restructuring expenses were USD 4.3 million compared with USD 2.6 million in Q3 2009. The 2010 non-recurring restructuring expenses relate to the European and Asian operations.

Q3 Net profit from Operations (after non-recurring restructuring expenses): USD 41.9 million (per share EUR 0.89), 40.1% higher than USD 29.9 million in Q3 2009 (per share EUR 0.61).

Q3 Net Result Investment portfolio was USD 3.7 million positive (after deduction of imputed interest and expenses) compared with USD 4.5 million positive in Q3 2009. The Portfolio's return in U.S. dollars in Q3 (before imputed interest and expenses) was 4.6% positive compared with 3.4% positive in Q3 of 2009.

Q3 Total Net Result: USD 45.6 million (per share EUR 0.98), 32.6% higher than USD 34.4 million in Q3 2009 (per share EUR 0.70).

First nine months 2010 by Region

Europe
European sales were USD 720 million, 2% lower than USD 738 million in the same period last year. This reflects a 6% volume decrease, a 6% contribution from acquisitions and a 2% negative currency impact. In EUR, sales increased to EUR 543 million compared with EUR 537 million in 2009.

North America
North American sales increased by 7% to USD 727 million, reflecting a 5% volume increase and a 2% positive currency impact.

Latin America
Latin American sales were USD 149 million, 16% higher than USD 129 million in the same period last year. The sales increase reflects a 8% volume increase and a 8% positive currency impact.

Asia
Asian sales were USD 135 million, 10% higher than USD 123 million in the same period last year. The sales increase reflects a 7% volume increase and a 3% positive currency impact.

Australia
Australian sales were USD 71 million compared with USD 64 million in the same period last year reflecting a 8% volume decrease and a 19% positive currency impact.

Outlook
Consumer demand remains sluggish and the economic outlook uncertain in Europe and the U.S. Hunter Douglas therefore continues to be cautious in its outlook.

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 169 companies with 69 manufacturing and 100 assembly operations in more than 100 countries. Hunter Douglas employs about 17,300 people, and had sales in 2009 of USD 2.376 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
E-mail : l.reijtenbagh@hdnv.nl
Website: www.hunterdouglasgroup.com

A consolidated Statement of Income for the first nine months and Q3 (Annex 1+2), Balance Sheet (Annex 3), Cash Flow Statement (Annex 4) and Sales change attribution percentages by geographic region for the first nine months and Q3 (Annex 5) are attached.

Annex 1
Annex 2
Annex 3
Annex 4
Annex 5

 

 

 

 

 

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