PR Newswire/Les Echos/
? FIRST HALF 2008
Operating Income Down
and
Debt Sharply Reduced
The Board of Directors of Chargeurs met on August 28 under the chairmanship of
Eduardo Malone to approve the consolidated financial statements for the six
months ended June 30, 2008.
Revenue for the period totaled 335.4 million, down 9% on the same period last
year based on a comparable scope of consolidation. The global economic and
financial environment continued to deteriorate in the first half of 2008, with
falling demand in the markets served by the Group's main customers, persistent
depreciation of many currencies against the euro and a surge in the prices of
oil, energy and a number of raw materials.
As a result, operating income fell by half to 7.4 million.
Net income amounted to 9.1 million, including non-recurring income from
the sale of a tax receivable.
1- CONSOLIDATED RESULTS
First Half
(in € millions) 2008 Pro forma 2007*
Revenue 335.4 368.7
Operating income 7.4 15.4
Net income 9.1 8.4
* Restated as if Chargeurs Fashion had been excluded from the scope of
consolidation from January 1, 2007.
2 - ANALYSIS BY OPERATING SEGMENT
CHARGEURS PROTECTIVE FILMS
First Half
(in millions) 2008 2007
Revenue 103.8 113
Operating income 7.3 9.5
Chargeurs Protective Films' revenue declined by 8.1%.
Operating income fell by 23.2%, mainly due to the euro's constant appreciation
against other currencies.
Sales price increases have been launched to offset skyrocketing raw materials
prices. These pricing measures will deliver their full effects in the fourth
quarter of 2008.
CHARGEURS INTERLINING
First Half
(in millions) 2008 2007
Revenue 113.4 123.6
Operating income 4.7 6.5
Chargeurs Interlining's revenue contracted by 8.2% due to the combined impact
of the US dollar's decline against the euro and lower sales volumes.
Operating income was down 27.7% as a result of weaker-than-expected demand and
the impact of restructuring measures launched in Europe in the first half of
2008 to reduce the business's fixed costs.
CHARGEURS WOOL
First Half
(in millions) 2008 2007
Revenue 114.2 127.6
Operating income 0.5 2.7
The 10.5% decrease in Chargeurs Wool's revenue was mainly attributable to
reduced sales volumes.
Operating income fell sharply due to the decline in sales as well as to the
losses generated by wool combing operations in Australia and the impact of the
related restructuring program undertaken during the period.
In addition, Chargeurs Wool withdrew from wool combing operations in South
Africa.
3 - FINANCIAL POSITION AND OUTLOOK
Despite a difficult global environment, Chargeurs' financial position improved
during the period, mainly thanks to cash provided by operating activities.
Net debt was reduced by 27% to 39.9 million at June 30, 2008 from 54.6 million
at December 31, 2007.
Chargeurs does not expect any significant improvement in its markets during the
second half of 2008.
The Group will continue to implement measures whose full benefits should be
felt in 2009 and, as a result, enable it to restore operating margins to normal
levels.
August 29, 2008
Corporate Communication
Tel.: +33 (0)1 71 72 31 65
www.chargeurs.fr
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