Hunter Douglas Results 2007
Hunter Douglas Results 2007
Rotterdam, March 13, 2008 – Hunter Douglas, the world market leader in window coverings (Luxaflex®) and a major manufacturer of architectural products, results for 2007:
. Sales: 15.1% higher to USD 3.028 billion compared with USD 2.630 billion in 2006.
. Income from Operations (before extraordinary loss): 4.6% lower to USD 325.5 million compared with USD 341.1 million in 2006.
. Net Profit from Operations (before extraordinary loss): 4.0% higher to USD 271.3 million compared with USD 260.9 million in 2006.
. Extraordinary loss on sale of Vlissingen smelter participation: USD 23.7 million.
. Net Result Investment Portfolio: USD 61.8 million (after deduction of imputed interest and expenses) compared with USD 66.2 million in 2006.
. Total Net Profit: 5.4% lower to USD 309.4 million compared with USD 327.1 million in 2006.
Sales: The 15.1% Sales increase reflects a 2.5% volume increase, a 8.2% contribution from acquisitions (net of divestments) and a 4.4% positive currency impact. All geographic areas had organic growth except North America and Australia.
Europe accounted for 42% of sales, North America 42%, Latin America 6%, Asia 6% and Australia 4%. Window Coverings were 87% and Architectural and Other Products were 13% of sales.
Income from Operations was higher in Europe, Asia and Latin America, offsetting declines in North America and Australia.
Net Result Investment Portfolio: The Portfolio's return in U.S. dollars (before imputed interest and expenses) was 14.4% compared with 16.9% in 2006. The Portfolio had a fair value at year end 2007 of USD 849 million compared with USD 771 million at the end of 2006. Management of these assets is delegated to a widely diversified range of independent managers.
Total Net Profit per average outstanding common share was USD 7.35 (EUR 5.35) compared with USD 7.82 (EUR 6.22) in 2006.
Operating cash flow: USD 187 million compared with USD 279 million in 2006.
Capital expenditures were USD 140 million compared with USD 107 million in 2006, while depreciation was USD 85 million compared with USD 70 million in 2006. The investments were dedicated to growing the existing business, efficiency improvements and new products..
Return before interest on Net Assets Employed (RONAE): 20.2% compared with 25.1% in 2006.
Return on Equity: 17.0% compared with 21.2% in 2006.
Shareholder's equity was USD 1.964 billion, up from USD 1.680 billion at the end of 2006.
Employees: The company had approximately 21,000 employees at the end of 2007, up from 20,000 at the end of 2006. The increase is due to acquisitions.
Dividend: The Board of Directors recommends the same EUR 2.00 dividend per common share as in 2006.
Fourth quarter 2007
Q4 Sales were USD 779.5 million, 15.0% higher than USD 677.9 million in the same period of 2006. The increase reflects a 0.6% volume increase, a 8.7% contribution from acquisitions and a positive currency impact of 5.7%. Fourth quarter organic sales were higher in Europe and Asia.
Q4 Income from Operations was USD 83.4 million, 15.5% lower than USD 98.7 million in the fourth quarter of 2006. In local currencies profit was higher in Latin America, Asia and Australia and lower in Europe and North America.
Q4 Net Result Investment portfolio was USD 7.0 million negative (after deduction of imputed interest and expenses) compared with USD 32.0 million positive in the fourth quarter of 2006. The Portfolio's return in U.S. dollars in the fourth quarter of 2007 (before imputed interest and expenses) was 2.2% compared with 8.2% in the fourth quarter of 2006.
Q4 Total Net Profit was USD 64.8 million, 36.7% lower than USD 102.3 million in the same period of 2006. Net profit per average common share decreased to USD 1.51 (EUR 1.02) compared with USD 2.45 (EUR 1.90) in the fourth quarter of 2006.
Total year 2007 by Region
Europe
European Operations had higher sales and level profits, benefiting from successful product launches and acquisitions.
Sales in Europe increased by 27.9% to USD 1.293 billion. The sales increase reflects a 5.7% volume increase, a 13.5% contribution from acquisitions (net of divestments) and a 8.7% positive currency impact. In EUR, sales increased by 16.9% to EUR 940 million compared with EUR 804 million in 2006.
North America
North American Operations had slightly higher sales, but lower operating profits.
North American sales increased by 3.5% to USD 1.284 billion, reflecting a 3.5% volume decrease, a 6.3% contribution from acquisitions and a 0.7% positive currency impact.
Latin America
Latin American Operations again had record sales and profits, supported by the ongoing strength of most of the region's economies.
Latin American sales were USD 171 million, 14.0% higher than USD 150 million in the same period last year. The sales increase reflects a 11.3% volume increase and a 2.7% positive currency impact.
Asia
Asian Operations had much higher sales and profits.
Asian sales were USD 168 million, 31.3% higher than USD 128 million in the same period last year. The sales increase reflects a 28.2% volume increase and a 3.1% positive currency impact.
Australia
Australian Operations had higher sales and profits.
Australian sales were USD 112 million, 10.9% higher than USD 101 million in the same period last year. The sales increase is caused by a 10.9% positive currency impact.
Buyback of Common Shares
The Company is announcing, in a separate Press Release simultaneously released today, that it intends to make a Public Offer to buy back any and all of its Common Shares held by Minority Shareholders at a price of EUR 43.00 per Common Share.
Outlook
Hunter Douglas is cautious about the outlook for 2008, considering the deteriorating market conditions in the U.S. and slowing economic growth in many other markets.
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 67 manufacturing and 102 assembly operations in more than 100 countries. Hunter Douglas employs about 21,000 people.
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 2007 and the fourth quarter (Annex 1+2), Balance Sheet (Annex 3), Cash Flow Statement (Annex 4) and Sales change attribution percentages by geographic region for the full year 2007 and fourth quarter 2007 (Annex 5) are attached.
. Sales: 15.1% higher to USD 3.028 billion compared with USD 2.630 billion in 2006.
. Income from Operations (before extraordinary loss): 4.6% lower to USD 325.5 million compared with USD 341.1 million in 2006.
. Net Profit from Operations (before extraordinary loss): 4.0% higher to USD 271.3 million compared with USD 260.9 million in 2006.
. Extraordinary loss on sale of Vlissingen smelter participation: USD 23.7 million.
. Net Result Investment Portfolio: USD 61.8 million (after deduction of imputed interest and expenses) compared with USD 66.2 million in 2006.
. Total Net Profit: 5.4% lower to USD 309.4 million compared with USD 327.1 million in 2006.
Sales: The 15.1% Sales increase reflects a 2.5% volume increase, a 8.2% contribution from acquisitions (net of divestments) and a 4.4% positive currency impact. All geographic areas had organic growth except North America and Australia.
Europe accounted for 42% of sales, North America 42%, Latin America 6%, Asia 6% and Australia 4%. Window Coverings were 87% and Architectural and Other Products were 13% of sales.
Income from Operations was higher in Europe, Asia and Latin America, offsetting declines in North America and Australia.
Net Result Investment Portfolio: The Portfolio's return in U.S. dollars (before imputed interest and expenses) was 14.4% compared with 16.9% in 2006. The Portfolio had a fair value at year end 2007 of USD 849 million compared with USD 771 million at the end of 2006. Management of these assets is delegated to a widely diversified range of independent managers.
Total Net Profit per average outstanding common share was USD 7.35 (EUR 5.35) compared with USD 7.82 (EUR 6.22) in 2006.
Operating cash flow: USD 187 million compared with USD 279 million in 2006.
Capital expenditures were USD 140 million compared with USD 107 million in 2006, while depreciation was USD 85 million compared with USD 70 million in 2006. The investments were dedicated to growing the existing business, efficiency improvements and new products..
Return before interest on Net Assets Employed (RONAE): 20.2% compared with 25.1% in 2006.
Return on Equity: 17.0% compared with 21.2% in 2006.
Shareholder's equity was USD 1.964 billion, up from USD 1.680 billion at the end of 2006.
Employees: The company had approximately 21,000 employees at the end of 2007, up from 20,000 at the end of 2006. The increase is due to acquisitions.
Dividend: The Board of Directors recommends the same EUR 2.00 dividend per common share as in 2006.
Fourth quarter 2007
Q4 Sales were USD 779.5 million, 15.0% higher than USD 677.9 million in the same period of 2006. The increase reflects a 0.6% volume increase, a 8.7% contribution from acquisitions and a positive currency impact of 5.7%. Fourth quarter organic sales were higher in Europe and Asia.
Q4 Income from Operations was USD 83.4 million, 15.5% lower than USD 98.7 million in the fourth quarter of 2006. In local currencies profit was higher in Latin America, Asia and Australia and lower in Europe and North America.
Q4 Net Result Investment portfolio was USD 7.0 million negative (after deduction of imputed interest and expenses) compared with USD 32.0 million positive in the fourth quarter of 2006. The Portfolio's return in U.S. dollars in the fourth quarter of 2007 (before imputed interest and expenses) was 2.2% compared with 8.2% in the fourth quarter of 2006.
Q4 Total Net Profit was USD 64.8 million, 36.7% lower than USD 102.3 million in the same period of 2006. Net profit per average common share decreased to USD 1.51 (EUR 1.02) compared with USD 2.45 (EUR 1.90) in the fourth quarter of 2006.
Total year 2007 by Region
Europe
European Operations had higher sales and level profits, benefiting from successful product launches and acquisitions.
Sales in Europe increased by 27.9% to USD 1.293 billion. The sales increase reflects a 5.7% volume increase, a 13.5% contribution from acquisitions (net of divestments) and a 8.7% positive currency impact. In EUR, sales increased by 16.9% to EUR 940 million compared with EUR 804 million in 2006.
North America
North American Operations had slightly higher sales, but lower operating profits.
North American sales increased by 3.5% to USD 1.284 billion, reflecting a 3.5% volume decrease, a 6.3% contribution from acquisitions and a 0.7% positive currency impact.
Latin America
Latin American Operations again had record sales and profits, supported by the ongoing strength of most of the region's economies.
Latin American sales were USD 171 million, 14.0% higher than USD 150 million in the same period last year. The sales increase reflects a 11.3% volume increase and a 2.7% positive currency impact.
Asia
Asian Operations had much higher sales and profits.
Asian sales were USD 168 million, 31.3% higher than USD 128 million in the same period last year. The sales increase reflects a 28.2% volume increase and a 3.1% positive currency impact.
Australia
Australian Operations had higher sales and profits.
Australian sales were USD 112 million, 10.9% higher than USD 101 million in the same period last year. The sales increase is caused by a 10.9% positive currency impact.
Buyback of Common Shares
The Company is announcing, in a separate Press Release simultaneously released today, that it intends to make a Public Offer to buy back any and all of its Common Shares held by Minority Shareholders at a price of EUR 43.00 per Common Share.
Outlook
Hunter Douglas is cautious about the outlook for 2008, considering the deteriorating market conditions in the U.S. and slowing economic growth in many other markets.
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 67 manufacturing and 102 assembly operations in more than 100 countries. Hunter Douglas employs about 21,000 people.
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 2007 and the fourth quarter (Annex 1+2), Balance Sheet (Annex 3), Cash Flow Statement (Annex 4) and Sales change attribution percentages by geographic region for the full year 2007 and fourth quarter 2007 (Annex 5) are attached.
- Consolidated Statement of Income for 2007 and the fourth quarter (Annex 1+2)
Annex 1
Annex 2 - Balance Sheet
Annex 3 - Cash Flow Statement
Annex 4 - Sales change attribution percentages by geographic region for the full year 2007 and fourth quarter 2007
Annex 5
