Francotyp-Postalia Holding AG / Quarter Results/Quarter Results
10.11.2008
Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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FP Driving Ahead with Realignment
- Revenue at 106.1 million euros for the first nine months of 2008 clearly
influenced by currency rates
- EBITDA reaches 14.3 million euros for the nine months of 2008
- Mailstream revenue doubles: EBITDA positive
- Restructuring progressing as planned
- More precise guidance for the full fiscal year 2008
Birkenwerder, November 10, 2008. Francotyp-Postalia Holding AG, a worldwide
service provider for the outbound mail market, is reporting revenue of
106.1 million euros for the first nine months of 2008. This is slightly
down on 108.9 million euros reported for the same quarter last year. Third
quarter revenue came to 33.4 million euros in the current financial year,
compared to 33.9 million euros for the same quarter last year.
The main factors in this downturn in revenue were unfavourable exchange
rates, the ongoing poor economy and a weaker rate change than expected in
the USA. Exchange rates had a negative effect of 5.0 million euros taken
over the first three quarters of 2008. However the Company's operative
performance on constant exchange rate for the first nine months comes to
111.1 million euros, i. e. 2.0 percent up on the comparable figure for
2007.
Mailstream Business Continues to Grow Strongly
High growth rates continue to characterize the Company's Mailstream
business, first started in 2006. Despite the seasonally weak summer months,
this segment achieved revenue of 3.8 million euros during the third quarter
of 2008, compared to 2.2 million euros in the third quarter of 2007. Total
revenue in the Mailstream segment for the full nine months of 2008 reached
11.3 million euros, compared to 6.0 million euros for the same period in
2007. That corresponds to a growth rate of around 90 percent.
The main growth driver is the subsidiary freesort. During the first three
quarters of 2008, freesort - which specializes in consolidating outbound
mail - processed over 120 million letters. As a result, it increased its
revenue by 150 percent to 8.3 million euros, compared to 3.3 million euros
reported for the third quarter of 2007. The Company's outsourcing
specialist iab also increased its nine-month revenue figure to 3.0 million
euros, up from 2.7 million euros reported last year.
Mailroom Revenue Strongly Affected by Exchange Rates
Revenue from franking and inserting machines in the more traditional
Mailstream segment reached 29.6 million euros in the third quarter of 2008,
compared to 31.7 million euros for the same quarter in 2007. The Company is
reporting revenue of 94.8 million euros for the first three quarters of
2008, compared to 102.9 million euros for the same period last year.
Unfavourable exchange rates had a particularly negative effect on Mailroom
revenue. Other factors contributing to the comparatively lower figure were
the positive one-off NetSet effect in the Netherlands reported in 2007, as
well as continuing pressure on prices for standard products in Germany and
other European countries.
Nevertheless, the Mailroom segment reported stable business in Germany over
the nine months, with a robust third quarter in 2008. Revenue came to 11.7
million euros and remains unchanged compared to the third quarter of 2007.
And with a market share of 44.3 percent in Germany, the FP Group continues
to build on its market leadership in its home market.
Restructuring Progressing as Planned
The FP Group is continuing to restructure as planned. Apart from optimising
the production and supply chain, during the last quarter the German
marketing and sales organisation was repositioned to better reflect the
more solutions-orientated business. The inauguration of the new Customer
Care Center at Birkenwerder, which commenced work on 1st October, is a
major milestone in this respect.
Unfavourable exchange rates, weaker growth in the Mailroom segment and
restructuring costs all had a negative effect on the results of the FP
Group. In the first thee quarters of 2008, EBITDA (earnings before
interest, taxes, depreciation and amortization) came to 14.3 million euros.
Adjusted for restructuring, this figure comes to 16.8 million euros, still
down on the previous year's figure of 20.5 million euros. Negative currency
effects also pulled down results by 2.7 million euros in the first nine
months of 2008. However, when both currency translation and restructuring
costs are factored out, EBITDA comes to 19.5 million euros for the first
three quarters of 2008.
Progress made in the Mailstream business is particularly noteworthy, now
contributing a positive result. This segment of the Company reported an
EBITDA of 0.9 million euros, compared to -0.6 million euros for the
comparable period last year.
EBITDA for the FP Group came to 4.5 million euros (adjusted for
restructuring costs of 5.0 million euros), compared to 5.0 million euros
for the same reporting period last year.
Integration of Both Segments
'We have been driving ahead with the realignment of the FP Group during the
third quarter,' stated Dr. Heinz-Dieter Sluma, CEO of Francotyp-Postalia
Holding AG. The FP Group is also increasingly targeting its new services at
Mailroom customers, thereby pushing forward the integration of its two
segments. Finding optimal solutions for customers using classic franking
machines, combined with digital solutions, remains at the forefront of the
Company's efforts.
'A study we have conducted shows that German companies have ancillary mail
charges averaging 1.38 euros per letter,' commented Dr. Sluma. These
additional costs arise from the work involved in processing, inserting and
franking mail, as well as travel to and from collection point or post
office. The digital solutions the FP Group offers can reduce these costs
by as much as 80 percent. 'Particularly in a period of weak economic
growth, this argument must be of major significance to companies, no matter
what their size,' emphasized Dr. Sluma.
Guidance for 2008
Mailstream business will remain the growth driver for the FP Group. In the
Mailroom segment, the Company will continue to implement measures in the
fourth quarter to further improve efficiency and reduce costs.
Restructuring will result in charges of around 3 million euros in the
current year. However, these expenses will be offset by expected savings of
1.0 million euros as early as in 2008, with further annual savings of
between around 3 to 5 million euros from 2009 onwards. The savings
mentioned will result mainly from optimizing production and supply chains.
The FP Group has revised its guidance for the full year 2008. Due to the
economic downturn, especially in the USA, and a resulting slowdown in
Mailroom business, the Company has downgraded its revenue forecast to the
lower side of a corridor between 140 to 145 million euros. Regarding
earnings, the Company now expects EBITDA to reach between 21 to 22 million
euros before restructuring costs. This figure already prices in any
uncertainties following the upheavals of the financial crisis. But internal
measures already planned do mean that the Company sees some chance of
achieving the higher earnings level.
Contact
Francotyp Postalia Holding AG
Sabina Prüser
Tel: +49 (0)3303 525 410
Fax: +49 (0)3303 53707 410
E-Mail: s.prueser@francotyp.com
The FP Group at a Glance
Francotyp-Postalia Holding AG (FP Group) is a leading manufacturer of
franking machines covering the whole value added chain in the outbound mail
market. Its products and services range from franking and inserting
machines to the collection, sorting and consolidation of outbound mail, as
well as electronic hybrid mail solutions offering 21st century mail
processing. Headquartered in Birkenwerder near Berlin, the FP Group offers
businesses of all sizes individually tailored mailstream services. The FP
Group has local branches in many industrialised countries and currently
holds over 9% of the worldwide franking machine market. With a corporate
history extending back over 80 years, today the FP Group is profiting from
the growing liberalisation of mail markets and the increasing interest of
businesses to delegate their outbound mail operations to professional
service providers. In financial 2007, the Group employed around 1,100
people, with revenue of 145.1 million euros and an EBITDA of 26.3 million
euros.
Contact:
Francotyp-Postalia Holding AG
Media Relations
Telefon: +49 (0)3303 525 777
Telefax: +49 (0)3303 53 70 77 77
E-Mail: pr@francotyp.com
DGAP 10.11.2008
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Language: English
Issuer: Francotyp-Postalia Holding AG
Triftweg 21-26
16547 Birkenwerder
Deutschland
Phone: +49 (0)3303 525 777
Fax: +49 (0)3303 53 70 77 77
E-mail: ir@francotyp.com
Internet: www.francotyp.com
ISIN: DE000FPH9000
WKN: FPH900
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Stuttgart, München, Düsseldorf
End of News DGAP News-Service
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DGAP-News: Francotyp-Postalia Holding AG: FP Group Driving Ahead with Realignment
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