Hunter Douglas Results Nine Months 2006

 

 

<?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />Rotterdam, November 7, 2006 - Hunter Douglas, the world market leader in window coverings
(Luxaflex®) and a major manufacturer of architectural products (Luxalon®), reports its results for the first nine months of 2006 :

 

.           Sales: 11.9% higher to EUR 1,571 million;
compared with EUR 1,404 million in the first nine months of 2005.

 

.           Income from Operations: 11.1% higher to EUR 195.1 million;
            compared with EUR 175.5 million in the first nine months of 2005.

 

.           Net Profit from Operations: 30.2% higher to EUR 153.4 million;
compared with EUR 117.8 million in the first nine months of 2005.

.           Net Profit Investment Portfolio: EUR 27.5 million;
compared with EUR 12.2 million in the first nine months of 2005.

 

.           Total Net Profit: 39.2% higher to EUR 180.9 million;
            compared with EUR 130.0 million in the first nine months of 2005.

 

Sales were EUR 1,571 million, 11.9% higher than EUR 1,404 million in the first nine months of
2005. The sales increase reflects a 5.5% volume increase, a 4.5% increase from acquisitions
and 1.9% positive currency impact. All geographic areas had higher sales except Asia.
 

North America accounted for 48% of sales, Europe 38%, Latin America 5%, Asia 5% and
Australia 4%. Window Coverings were 88% and Architectural and Other Products were 12% of sales.

 

Income from Operations was EUR 195.1 million, 11.1% higher than EUR 175.5 million in the
first nine months of 2005. In local currencies, Income from Operations was higher in all areas,
except in North America and Asia where Operating results were lower.

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Net Profit from Operations was EUR 153.4 million, 30.2% higher than EUR 117.8 million in the first
nine months of 2005. In local currencies, Net Profit from Operations was higher in all areas,
except in North America where it was level and Asia which had lower results.

 

Net Profit Investment Portfolio was EUR 27.5 million (after deduction of imputed interest and
expenses) compared with EUR 12.2 million in the first nine months of 2005. The investment
portfolio had a fair value on September 30, 2006 of EUR 550 million compared with EUR 575
million at the end of December 2005. The Portfolio's return in USD (before imputed interest and
expenses) was 8.7%. Management of these assets is delegated to a widely diversified range of
independent managers.

 

Total Net Profit was EUR 180.9 million, 39.2% higher than EUR 130.0 million in the first nine
months of 2005. Net profit per average outstanding common share was EUR 4.32 compared with
EUR 3.12 in the first nine months of 2005, adjusted for stock dividends.

 

Capital expenditures were EUR 54 million compared with EUR 50 million in the first nine
months of 2005, while depreciation was EUR 41 million, compared with EUR 40  million in the
first nine months of 2005. For the full year capital expenditures are expected to be approximately
EUR 80 million.

 

Shareholder's equity was EUR 1,223 million, up from EUR 1,186 million at the end of 2005.
 

Third Quarter 2006
 

Q3 Sales were EUR 525 million, 6.0% higher than EUR 495 million in the same period of 2005.
The increase reflects a 4.0% volume increase, a 3.4% contribution from acquisitions and a
negative currency impact of 1.4%. In local currencies third quarter sales were higher in all areas,
except in Asia, where they were lower.

 
Q3 Income from Operations was EUR 75.2 million, 0.4% higher than EUR 74.9 million in the
third quarter of 2005. In local currencies profits were higher in all areas, except in North America
and Asia where the Operating results were lower.

 

Q3 Total Net Profit from Operations in the third quarter was EUR 63.8 million, 26.1% higher
than EUR 50.6 million in the same period in 2005. In local currencies profits were higher in all
areas, except in North America where it was level and Asia which had lower results.
 

Q3 Net Profit Investment portfolio was EUR 5.0 million (after deduction of imputed interest and
expenses) compared with EUR 24.5 million in the third quarter of 2005. The Portfolio's return in
USD in the third quarter of 2006 (before imputed interest and expenses) was 2.1%, compared
with 6.1% in the third quarter of 2005.
 

Q3 Total Net Profit was EUR 68.8 million, down 8.4% from EUR 75.1 million in the same period
of 2005. Net profit per average common share was EUR 1.64 compared with EUR 1.80 in the
third quarter of 2005, adjusted for stock dividends.
  

Sales by Region first nine months 2006
 

Europe

Sales in Europe increased by 12% to EUR 597 million. The sales increase reflects 9% volume
increase and 3% contribution from acquisitions. 
 

North America

North American sales increased by 11% to EUR 759 million reflecting a 2% volume increase, 3%
positive currency impact and 6% contribution from acquisitions. In USD, sales increased by 8%
to USD 943 million.
 

Latin America
Latin American sales were EUR 84 million, 33% higher than in the same period last year. The
sales increase reflects 27% volume increase and 6% positive currency impact. 
 

Asia

Asian sales were EUR 76 million, 4% lower than in the same period of 2005. This is the result of
6% volume decrease and 2% positive currency impact. 
 

Australia

Australian sales were EUR 55 million, 15% higher than in the same period last year. The sales
increase reflects 2% volume increase and 13% contribution from acquisitions.
 

Hunter Douglas remains optimistic about the operating results for the remainder of 2006 in view of
the strong position of its products, distribution and finances.
 

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 164 companies with 65
manufacturing and 99 assembly operations in more than 100 countries. Hunter Douglas employs
about 19,000 people, and had sales in 2005 of EUR 1,920 million.
 

The common shares of Hunter Douglas N.V. are traded on Euronext and the Deutsche Börse.

 

For further information:

Leen Reijtenbagh

Chief Financial Officer

Tel. +31 10 486 95 82

Email         : l.reijtenbagh@hdnv.nl

Website    : www.hunterdouglasgroup.com

 

A consolidated Statement of Income for the first nine months and the third quarter (Annex 1 +2),
Balance Sheet (Annex 3), and Sales change attribution percentages by geographic region for the
first nine months and third quarter 2006 (Annex 4) are attached.

  • CONSOLIDATED STATEMENT OF INCOME (Annex 1)


  • CONSOLIDATED STATEMENT OF INCOME (Annex 2)


  • CONSOLIDATED BALANCE SHEET (Annex 3)


  • PERCENTAGE SALES CHANGE ATTRIBUTION (Annex 4)
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