AUGSBURG, Germany, May 19, 2004 (PRIMEZONE) -- Highlights of the BOWE SYSTEC AG Interim Report I for 2004:
- Dividend of EUR 1.25 per share - Approval of all items on the agenda
Enhanced Company Objectives from Integration of US Participation Hesitant Start in 1st Quarter 2004
During today's Annual General Meeting of the specialist for high-performance inserting systems the Board of Directors reported a positive development for the company against the background of a difficult economic climate. In 2003 the BOWE SYSTEC Group enjoyed a very successful financial year. As already reported, BOWE SYSTEC achieved the highest turnover and group net profit since the group was established. In the financial year 2003 the group achieved a leap in turnover, based on investment, of 69% to EUR 346.4 million, from EUR 204.6 million in 2002. The net earnings of EUR 16.2 million mean a growth of 16% on the previous year's figures. The growth in results was adversely affected by the significant exchange rate loss from the US$ to the Euro and by one-off expenditures on the integration of the 50% participation in BOWE Bell + Howell, USA. With the acquisition of BOWE Bell + Howell end of 2002, BOWE SYSTEC has taken a decisive step forward in ensuring sustained growth in turnover and results for the future. In the financial year 2003, priority was given to promoting the smooth integration of the American sales and service network of BOWE Bell + Howell into the organisation of the BOWE SYSTEC Group, in order to release the high potential arising from the merger. The shareholders of the BOWE SYSTEC AG decided by a large majority to agree both to a dividend of EUR 1.25 per share as suggested as well as to the discharge of the Board of Directors and the Supervisory Board. Furthermore, the shareholders authorised the company to create a new approved capital, to acquire its own shares, to issue convertible loan stock to certain staff and management and to issue jouissance rights.
As anticipated the BOWE SYSTEC Group started hesitantly in the first quarter 2004. In the first three months of the 2004 financial year the group achieved a turnover of EUR 66.4 million. Compared to the figures for the previous year, this represents a decline of 14%. Of this, 8% resulted from exchange rate fluctuations. The adjusted real decline of 6% was expected due to the relatively low level of orders on hand at the beginning of the financial year. The orders on hand have risen to EUR 52.4 million (+30%) at the end of the 1st quarter compared to the level at the beginning of the year. As anticipated for the first quarter of 2004 the result after tax was negative, amounting to EUR -2.4 million following EUR -1.4 million in the previous year. At EUR 78.7 million, the orders acquired in the months January to March 2004 remained at the previous year's level (EUR 79.8 million). Adjusted to take currency effects into consideration, however, this represents real growth of around 10 %. Based on this positive trend, the Board anticipates turnover in excess of EUR 350 million for the year 2004 and a net profit of around EUR 20 million. The detailed interim report of the 1st quarter 2004 is available as a pdf file at: