HUNTER DOUGLAS RESULTS 2012
HUNTER DOUGLAS RESULTS 2012
HUNTER DOUGLAS RESULTS 2012
Rotterdam, March 13, 2013 – Hunter Douglas, the world market leader in window coverings (Luxaflex®) and a major manufacturer of architectural products, results for 2012:
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Sales: 1.7% lower to USD 2.529 billion, compared with USD 2.573 billion in 2011.
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Earnings before interest, tax, depreciation and amortization - EBITDA (before non-recurring restructuring expenses): USD 254.3 million, 10.6% higher than USD 229.9 million in 2011.
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Income from Operations (before non-recurring restructuring expenses): 14.4% higher to USD 163.3 million, compared with USD 142.8 million in 2011; in local currencies higher in North America, Latin America and Australia and lower in Europe and Asia.
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Non-recurring restructuring expenses: USD 44.4 million, compared with USD 31.4 million in 2011. The 2012 non-recurring restructuring expenses relate mainly to the European and North American operations.
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Net Result Investment Portfolio: USD 14.8 million positive (after deduction of imputed interest and expenses), compared with USD 18.6 million negative in 2011.
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Total Net Result: USD 101.1 million (per share EUR 2.24) 30.5% higher than USD 77.5 million in 2011 (per share EUR 1.57).
Sales: The 1.7% sales decrease reflects a 1.4% volume increase, a 0.3% increase from acquisitions and a 3.4% negative currency impact. Volume was higher in North and Latin America and lower in Europe, Asia and Australia.
North America accounted for 41% of sales, Europe 38%, Latin America 10%, Asia 7% 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 11.7% positive, compared with 7.8% negative in 2011. The Portfolio had a fair value at year-end 2012 of USD 25 million, compared with USD 192 million on December 31, 2011. The Investment Portfolio has been wound down over the course of the year. Most of the balance will be redeemed in the first half of 2013.
Operating cash flow: USD 156 million compared with USD 180 million in 2011.
Capital expenditures were USD 76 million compared with USD 111 million in 2011, while depreciation was USD 84 million, compared with USD 81 million in 2011.
In 2013 capital expenditures will be about USD 75 million and depreciation USD 85 million.
Shareholder’s equity was USD 1,093 million compared with USD 1,069 million at the end of 2011. The 2012 earnings were partly offset by a dividend (USD 55 million), a buy back of shares (USD 12 million) and an actuarial loss provision on pension plans (USD 11 million).
Accounting for pension schemes
On 1 January 2012 Hunter Douglas changed its accounting policy with respect to the recognition of actuarial gains and losses arising from defined benefit plans in accordance with revised IAS19. All actuarial gains and losses are recognized in other comprehensive income (OCI). The full year 2011 figures have been restated, resulting in a USD 68 million decline in Total Equity with no impact on the Income Statement.
Financing: All borrowings are covered by committed long term facilities.
Return before interest on Net Assets Employed – RONAE (before non-recurring restructuring expenses): 9.8% compared with 8.4% in 2011.
Employees: The company had approximately 16,500 employees at the end of 2012 unchanged from last year.
Dividend: The Board of Directors proposes a dividend for 2012 of EUR 1.25 per common share, the same as last year.
Q4 2012
Q4 Sales were USD 642.4 million, 0.2% lower than USD 643.2 million in the same period of 2011. This reflects a 0.8% volume increase, a 0.3% increase from acquisitions and a negative currency impact of 1.3%. Fourth quarter sales in local currencies were higher in North and Latin America and lower elsewhere.
Q4 Earnings before interest, tax, depreciation and amortization - EBITDA (before non-recurring restructuring expenses) was USD 82.5 million, compared with USD 60.2 million in Q4 2011.
Q4 Income from Operations (before non-recurring restructuring expenses) was USD 55.1 million, compared with USD 40.1 million in Q4 2011. In local currencies North America, Latin America and Australia had higher results, while results in Europe and Asia were lower.
Q4 Non-recurring restructuring expenses: USD 37.1 million, compared with USD 23.7 million last year. The 2012 non-recurring restructuring expenses relate mainly to the European and North American operations.
Q4 Net Result Investment portfolio was USD 4.2 million (after deduction of imputed interest and expenses) compared with USD 1.4 million in Q4 of 2011. The Portfolio’s return in U.S. dollars in Q4 (before imputed interest and expenses) was 3.6% compared with 1.2% in Q4 of 2011.
Q4 Total Net Result: USD 12.4 million (per share EUR 0.30), compared with USD 1.1 million in Q4 2011 (per share EUR 0.02).
Total year 2012 by Region
Europe
European operations had lower sales and results.
European sales were USD 975 million, 7% lower than USD 1,054 million in the same period last year. This reflects a 2% volume decrease, a 1% increase from acquisitions and a 6% negative currency impact. In EUR sales were EUR 755 million, compared with EUR 756 million in 2011.
North America
North American sales and profits were higher.
North American sales increased by 6% to USD 1,036 million, due to an increase in volume.
Latin America
Latin American operations had higher sales and profits.
Latin American sales were USD 248 million, compared with USD 247 million in the same period last year. This reflects an 8% volume increase, offset by an 8% negative currency impact.
Asia
Asian operations had lower sales and results.
Asian sales were USD 175 million, 9% lower than USD 192 million in the same period last year, due to a decrease in volume.
Australia
Australian sales were USD 95 million, compared with USD 105 million in the same period last year, reflecting a 10% volume decrease.
Outlook
Hunter Douglas expects improving economic conditions in the US, Latin America and Asia, but an ongoing challenging environment in Europe, until consumer confidence and housing markets recover.
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 68 manufacturing and 101 assembly operations in more than 100 countries. The common shares of Hunter Douglas N.V. are traded on Amsterdam’s Euronext and 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 full year 2012 and Q4 2012 (Annex 1+2), Balance Sheet (Annex 3), Cash Flow Statement (Annex 4) and Sales change attribution percentages by geographic region for the full year 2012 and Q4 2012 (Annex 5) are attached.
