Kronach, April 21, 2011 – At EUR 61.5 million, Loewe Group sales in the first quarter of 2011 were 16% lower than the 2010 figure of EUR 73.4 million. The reduced sales and production volume led to an EBIT loss for Loewe of EUR 2.9 million in the first quarter of 2011 compared to positive EBIT of EUR 0.8 million in the year before. Generally, the first quarter of 2011 was still burdened by the necessary streamlining of the Loewe TV product line and intense price competition. Significant market participants started targeted retail sales campaigns particularly in the early weeks of the current fiscal year to compensate for the 2010 Christmas shopping season which failed to meet market expectations. For 2011 as a whole, Loewe nonetheless expects moderate growth in sales and positive EBIT.
For the current year, Loewe will press ahead in protecting its future viability within the framework of "Fast Forward." The focus will be on systematically continuing the themes initiated in 2010. Specific plans include continuing the current product offensive with new 3D TV sets, further optimization of product costs in line with the platform strategy and the long-range brand strategy. In the current fiscal year, Loewe will also optimize the premium-based marketing of its top-quality products both within and outside of Germany through even closer cooperation with qualified retailers. Another focus of marketing and sales activities will be on expanding qualitative and quantitative distribution.
The market offers good medium-range opportunities for Loewe. In addition to the continued replacement demand and the increasing ownership of more than one LCD TV in Europe, new technologies like 3D television, HbbTV (the connection of television and the Internet) will provide Loewe with stimuli that will last beyond the current fiscal year. Although Loewe is not directly affected at present, the risk does exist that the current situation in Japan might have an impact on the availability of production material. For the current fiscal year, the Loewe Group expects moderate growth in sales and positive EBIT. Moreover, Loewe’s sound capital structure and wide-ranging financing agreements continue to put the company in a strong position for future growth.
Explanatory additional information:
ATTENTION PLEASE: In this connection Loewe is announcing a conference call with Mr. Oliver Seidl, CEO, and Manfred L. Fitzgerald, Member of the Board, for April 21 at 10:00 a.m. Kronach time. Please register for this call by phone at +49 9261 99-984 or by e-mail to ir(at)loewe.de to receive the access number. The conference call originally planned for May 4, 2011, will be cancelled accordingly.