Preliminary key figures for 2009: Loewe exceeds EBIT forecast despite drop in sales
Kronach, January 26, 2010 – Despite the lower sales and production volume compared to the year before and continued expenses for the premium positioning, preliminary figures show that the Loewe Group's value-based marketing enabled it to generate positive EBIT of about EUR 13.5 million in fiscal year 2009 (previous year: EUR 28.5 million). Loewe thus clearly exceeded its previous EBIT forecast of approximately EUR 12 million for fiscal year 2009 by 13% or EUR 1.5 million.
The sales of the Loewe Group in fiscal year 2009, at about EUR 325 million (previous year: EUR 374 million), were 7.5% lower than the current sales forecast of about EUR 350 million. In its key market Germany, Loewe was able to maintain the high sales level of the previous year in entertainment electronics. Export sales of EUR 132 million reflected a significant decline of approx. EUR 43 million.
In particular, the persisting difficult economic conditions in parts of Europe put a severe strain on Loewe's export business in 2009. This applies primarily to the important Spanish and Dutch markets. Compared to the previous year, sales in these two countries alone declined by almost EUR 30 million in fiscal year 2009. Principal causes for the negative business development are the repercussions of the global financial and real estate crisis. These factors had a particularly severe impact in Spain and the Netherlands. The propensity to purchase durable goods was thus significantly below the level for Germany in 2009. This is also reflected in the especially negative market trend for LDC TVs.
In an improved economic environment, the LCD TV market will continue to grow in Europe in the next few years, due in particular to the high replacement demand and increasing ownership of more than one set. From today's perspective, this market will grow by approximately 10% in 2010 (2009: 4%) due to the FIFA World Cup in South Africa, the market launch of HDTV in Germany and new technological innovations. The dynamic growth engines will continue to be large-screen TV sets, which are of particular importance for Loewe.
On this basis, the company anticipates moderate growth in sales for fiscal year 2010. Loewe's innovative home entertainment solutions put it in an extremely good position for repeating its high level of sales in Germany in 2010. Profitable sales growth in the double-digit range will be realized in the remaining key European markets. As a premium brand, Loewe will continue to focus systematically on results with cost discipline and value-based marketing. Moreover, Loewe’s sound capital structure and wide-ranging financing agreements put the Company in an optimum position for future growth.