HUNTER DOUGLAS RESULTS FIRST HALF YEAR 2014

Rotterdam, August 13, 2014 – Hunter Douglas, the world market leader in window coverings (Luxaflex®) and a major manufacturer of architectural products, results for the first half year 2014 :

• Sales: USD 1,323.9 million, 3.2% higher compared with USD 1,282.9 million in the first half of 2013.
   
• Earnings before interest, tax, depreciation and amortization - EBITDA: USD 133.3 million, 10.8% higher than USD 120.3 million in the first half of 2013.
   
• Income from Operations: USD 87.5 million, 15.9% higher than USD 75.5 million in the first half of 2013. Results were better in all areas except in North America where they were lower.
   
• Income before Tax: USD 77.1 million, 13.0% higher than USD 68.2 million in the first half of 2013.
   
• Total Net Profit: USD 64.7 million (per share EUR 1.36), 8.2% higher than USD 59.8 million in the first half of 2013 (per share EUR 1.31).

Sales: The 3.2% sales increase reflects a 3.5% volume increase and a 0.3% negative currency impact. Volume increased in all areas. 

North America accounted for 40% of sales, Europe 39%, Latin America 9%, Asia 8% and Australia 4%. Window Coverings were 82% and Architectural and Other Products were 18% of sales. 

Operating cash flow: USD 10.3 million compared with USD 7.2 million in the first half of 2013. 

Capital expenditures were USD 31 million compared with USD 30 million in the first half of 2013, while depreciation was USD 42 million compared with USD 41 million in the first half of 2013. For the full year capital expenditures are expected to be approximately USD 70 million and depreciation USD 85 million. 

Shareholder’s equity was USD 1,125 million compared with USD 1,124 million at the end of 2013, reflecting the first half year results offset by negative exchange translation and the payment of the dividend of EUR 1.25, totalling USD 59 million.  

Q2 2014

Q2 Sales: USD 718.3 million, 2.3% higher than USD 702.0 million in the same period of 2013. The increase reflects a 2.1% volume increase and a positive currency impact of 0.2%. Second quarter organic sales were higher in all areas.

Q2 Earnings before interest, tax, depreciation and amortization – EBITDA: USD 93.6 million, 9.1% higher than USD 85.8 million in Q2 2013. 

Q2 Income from Operations: USD 71.8 million, 13.2% higher than USD 63.4 million in Q2 2013. Results in local currencies were better in all areas except in North America where they were lower. 

Q2 Income before Tax: USD 66.9 million, 15.7% higher than USD 57.8 million in Q2 2013.

Q2 Total Net Profit: USD 54.1 million (per share EUR1.14), 9.5% higher than USD 49.4 million in Q2 2013 (per share EUR 1.08).

First half year 2014 by Region

Europe
European sales were USD 518 million, 7% higher than USD 484 million in the same period last year. This reflects a 2% volume increase and a 5% positive currency impact. In EUR, sales increased by 2% to EUR 378 million compared with EUR 369 million in 2013. 

North America
North American sales increased by 1% to USD 535 million. The sales increase reflects a 2% volume increase and a 1% negative currency impact. 

Latin America
Latin American sales were USD 117 million, 3% lower than USD 120 million in the same period last year. The sales decrease reflects a 10% volume increase and a 13% negative currency impact.

Asia
Asian sales increased by 6% to USD 107 million. The higher sales reflect a volume increase of 8% and a 2% negative currency impact.

Australia
Australian sales were USD 47 million, level with last year. This reflects a 9% volume increase and a 9% negative currency impact.

Outlook

Hunter Douglas expects improving economic conditions in the US and Asia, stable conditions in Latin America, but an ongoing challenging environment in Europe until consumer confidence and housing markets recover.

Hunter Douglas is 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 17,000 people, and had sales in 2013 of USD 2.636 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. 

Annex 1

Annex 2

Annex 3

Annex 4

Annex 5