Phoenix Mecano creates conditions for better 2003

Monday, 17. March 2003 07:30

Kloten/Stein am Rhein, 17 March 2003. The Phoenix Mecano Group's
provisional operating result for 2002 in terms of EBIT before
non-recurring expenses is ?12 million (as against
?17 million in 2001). This is equivalent to a drop of around
30%. At roughly ?37 million (compared with
?41 million in 2001), the Group's provisional operating cash
flow before non-recurring expenses is down 10% on the previous year.
As announced on 10 February 2003, provisional turnover in 2002
totalled ?324 million, down from ?342 million in
2001.

Over the past year, the Group launched extensive restructuring to
improve its expense situation and boost competitiveness. Most of
these measures, which generated expenses totalling
?9 million, have now been implemented. In addition,
worsening economic prospects necessitated a ?2 million
write-down of the Group's inventories and tangible assets. In view of
uncertainty regarding the global economic situation, the Group
continues to believe there is good reason to depreciate virtually all
the goodwill shown on the balance sheet. This measure, which does not
impact on the Group's cash flow, leads to an extraordinary charge of
around ?30 million on the Group's annual results.
The provisional net result for 2002 including non-recurring expenses
is approximately ?-38 million, compared with
?5 million the previous year.
Adjusted for non-recurring expenses, the resulting net profit is
around ?2 million.

The group's equitiy ratio adjusted for goodwill remains very solid at
42%. Over the past year, the Group's net debt was reduced by around
?12 million to ?92, using free cash flow from
operations.

Phoenix Mecano continues to anticipate difficult conditions for
business in 2003. However, its restructuring has paved the way for
substantially improved income, so the Group is looking to the future
with cautious optimism. Having said that, the consequences of a
potentially lengthy conflict in the Middle East are difficult to
assess.

As decided at the shareholders' general meeting in 2002, at the end
of June 2003 Phoenix Mecano will pay back the second and final
installment of a reduction in nominal share value in the amount of
CHF 6 per share. No withholding tax will be deducted from this
payment, which replaces the distribution of a dividend. Moreover, it
is tax-free for most private investors including residence of
Switzerland and Germany.


See table for comparable figures in CHF below.



Forthcoming dates to note:

30 April 2003, 9.30 a.m.
Annual report press conference, Zurich, Hotel Widder

30 April 2003, 11.30 a.m.
Financial analysts' meeting, Zurich, Hotel Widder

30 May 2003, 3 p.m.
Shareholders' meeting, Stein am Rhein, Hotel Chlosterhof


For further information, contact:

Phoenix Mecano Management AG
Benedikt Goldkamp, CEO
Lindenstrasse 23
8302 Kloten
Switzerland

Tel.: +41 43 255 4 255





Comparable figures in CHF 2002 2001
millions of CHF millions of
CHF
EBDIT before non-recurring expenses 55 62
EBIT before non-recurring expenses 17 26
Non-recurring expenses
* including goodwill 43 -
* including restructuring costs 13 9
* decreases in inventories/tangible 3 4
assets
Net income/loss - 56 8



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Related Links: Phoenix Mecano AG
Author:
Hugin
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