HUNTER DOUGLAS RESULTS FIRST HALF YEAR 2012
HUNTER DOUGLAS RESULTS FIRST HALF YEAR 2012
HUNTER DOUGLAS RESULTS FIRST HALF YEAR 2012
Rotterdam, August 8, 2012 – Hunter Douglas, the world market leader in window coverings (Luxaflex®) and a major manufacturer of architectural products, results for the first half year 2012 :
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Sales: USD 1,242.8 million, 3.2% lower compared with USD 1,283.3 million in the first half of 2011.
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Earnings before interest, tax, depreciation and amortization - EBITDA (before non-recurring restructuring expenses): USD 109.6 million, 10.0% lower than USD 121.8 million in the first half of 2011.
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Income from Operations (before non-recurring restructuring expenses): USD 68.1 million, 10.6% lower than USD 76.2 million in the first half of 2011. Results were better in North America and Australia and lower in all other areas.
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Non-recurring restructuring expenses: USD 3.2 million mainly in Europe and Australia compared with USD 4.3 million in North America and Europe in the first half of 2011.
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Net Result Investment Portfolio: USD 5.2 million (after deduction of imputed interest and expenses) compared with USD 0.2 million in the first half of 2011.
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Income before Tax: USD 66.0 million, 2.8% lower than USD 67.9 million in the first half of 2011.
- Total Net Profit: USD 57.7 million (per share EUR 1.25), 24.2% lower than USD 76.1 million in the first half of 2011 (per share EUR 1.52).
Sales: The 3.2% sales decrease reflects a 0.4% volume increase, a 0.4% increase from acquisitions and a 4.0% negative currency impact. Volume increased in North and Latin America and decreased in all other areas.
Europe accounted for 39% of sales, North America 40%, Latin America 9%, Asia 8% and Australia 4%. Window Coverings were 80% and Architectural and Other Products were 20% of sales.
Net Result Investment Portfolio: The Portfolio’s return in U.S. dollars (before imputed interest and expenses) was 4.1% compared with 1.0% in the first half of 2011. The Portfolio had a fair value at June 30, 2012 of USD 160 million compared with USD 192 million on December 31, 2011. Management of these assets is delegated to a widely diversified range of independent managers. The portfolio is being wound down over the course of this year and the proceeds will be used to reduce debt.
Operating cash flow: USD 35.8 million positive compared with USD 9.3 million negative in the first half of 2011.
Capital expenditures were USD 32 million compared with USD 46 million in the first half of 2011, while depreciation was USD 39 million compared with USD 43 million in the first half of 2011. For the full year capital expenditures are expected to be approximately USD 100 million and depreciation USD 80 million .
Shareholder’s equity was USD 1,119 million compared with USD 1,137 million at the end of 2011, reflecting the first half year results offset by negative exchange translation and the payment of the dividend of EUR 1.25, totalling USD 55 million.
Q2 2012
Q2 Sales: USD 655.3 million, 5.6% lower than USD 694.5 million in the same period of 2011. The decrease reflects a 0.5% volume decrease, a 0.7% contribution from acquisitions and a negative currency impact of 5.8%. Second quarter organic sales were higher in North and Latin America and lower in all other areas.
Q2 Earnings before interest, tax, depreciation and amortization - EBITDA (before non-recurring restructuring expenses): USD 74.9 million, 15.0% lower than USD 88.1 million in Q2 2011.
Q2 Income from Operations (before non-recurring restructuring expenses): USD 56.9 million, 12.1% lower than USD 64.7 million in Q2 2011. Results in local currencies were better in North America and Australia and lower in all other areas.
Q2 Non-recurring restructuring expenses: USD 3.2 million mainly in the European and Australian operations compared with USD 3.3 million in the North American and European operations in Q2 2011.
Q2 Net Result Investment portfolio: USD 6.9 million negative (after deduction of imputed interest and expenses) compared with USD 1.8 million negative in the second quarter of 2011. The Portfolio’s return in U.S. dollars in Q2 of 2012 (before imputed interest and expenses) was 2.9% negative compared with 0.8% negative in Q2 of 2011.
Q2 Income before Tax: USD 45.2 million compared with USD 56.8 million in Q2 2011.
Q2 Total Net Profit: USD 36.2 million (per share EUR 0.79) compared with USD 60.6 million in Q2 2011 (per share EUR 1.20).
First half year 2012 by Region
Europe
European sales were USD 485 million, 9% lower than USD 533 million in the same period last year. This reflects a 2% volume decrease, a 1% contribution from acquisitions and a 8% negative currency impact. In EUR, sales decreased by 1% to EUR 373 million compared with EUR 378 million in 2011.
North America
North American sales increased by 3% to USD 496 million due to a volume increase.
Latin America
Latin American sales were USD 113 million, 1% lower than USD 114 million in the same period last year. The sales decrease reflects a 7% volume increase and a 8% negative currency impact.
Asia
Asian sales were USD 102 million, 3% lower than USD 105 million in the same period last year. The lower sales are caused by a volume decrease.
Australia
Australian sales were USD 47 million, 4% lower than USD 49 mln in the same period last year. The sales decrease reflects a 10% volume decrease and a 6% contribution from acquisitions.
Outlook
The outlook remains cautious for Europe and North America where the business environment is expected to remain challenging until housing markets and consumer confidence recover. Modest growth is expected in Asia and Latin America.
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. Hunter Douglas employs about 16,500 people, and had sales in 2011 of USD 2.573 billion.
The common shares of Hunter Douglas N.V. are traded on Amsterdam’s Euronext and 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.
