Hartmann CEO Peter Arndrup Poulsen comments on the Annual Report 2007
On 13 March the Board of Directors and the Executive Board of Brødrene Hartmann A/S adopted the Annual Report 2007. Peter Arndrup Poulsen, CEO, makes the following statements about 2007 in general:
"The total performance in 2007 was not satisfactory. But the negative development in earnings has now turned around and several initiatives have been rolled out and have provided a basis for improved earnings going forward"
"We have abandoned the previous growth strategy and pulled out of the South American and Asian markets. The pullback involved a lot of nonrecurring costs and impairment, and they left their mark on the consolidated financial statements for the financial year 2007."
CEO Peter Arndrup Poulsen says about the future:
"We are beginning to see the results of our efforts, but there is still room for improvement. The fourth quarter ended 2007 on a positive note and the budgets for 2008 look promising. We must definitely increase the earnings in 2008."
"Our financial gearing is at an unsatisfactory high level. We have responded by planning a share issue that will provide the Group with a stronger financial platform for the development of our core business."
Facts on revenue and profit/(loss):
- Hartmann posted revenue of DKK 1,492 million in 2007, up 1% from last year. Operating profit/(loss) came to DKK -146 million against DKK 62 million last year.
- The consolidated financial statements are influenced by several non-recurring items, such as the impairment of assets etc. in Asia (DKK 49 million) and North America (DKK 115 million) and reorganisation costs (DKK 35 million).
- After allowing for these non-recurring items, the Group achieved a normalized operating profit/(loss) of DKK 53 million, which is somewhat above the year-earlier level of DKK 17 million.
- Impairment of tax assets North America DKK 48 million and Asia DKK 14 million respectively.
- Profit/(loss) on discontinued operations relates to the divestment of the Group’s operations in South America and amounts to DKK -242 million.
- The total profit/(loss) of the Group (EAT) for 2007 came to DKK -513 million against DKK -77 million last year.