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Visiocorp plc. corrects 2008 full-year target |
- Currency influences have noticeable effect on profit target
- Three of the nineteen plants not yet in line with plan
- Global restructuring process still in full swing
Portchester (May 13, 2008) Visiocorp plc, the world’s leading manufacturer of rear-view mirror systems for the automotive industry, today announced that it would have to reduce its ambitious profit target for 2008. Reasons for this are the EUR 4 m negative currency effects caused by the dollar, the Korean won and the British pound, as well as the unsatisfactory business results of the plants still in the restructuring phase, especially in Germany and Hungary. With a forecast turnover of EUR 720 m, the company now anticipates it will have to correct the planned profit of EUR 70 m (EBITDA) for 2008 by EUR 9.5 m to EUR 60.5 m. However, thanks to its current competitiveness and innovative products, Visiocorp plc is confident that it can successfully conclude the global restructuring currently in full swing with the management team which has worked on it since 2007.
Visiocorp was formed from the crisis-ridden company Schefenacker AG and the insolvent Engelmann group; in 2007, its first complete business year, it managed to wind up the first consolidation phase with an EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) of EUR 45 m (not including the ‘Sound’ product range). Following on from this, the company set itself the target, with the same turnover, of raising profits by 55% (EBITDA) in 2008 despite further restructuring programmes which were to have an impact on results, and a competitive environment.
However, as well as the negative currency effects worth EUR 4 m, considerable losses by the plants in Germany and Hungary will place a burden on the 2008 balance sheet, as the restructuring programmes started in 2007 were not carried out as planned.
Visiocorp CEO Prof. Ulrich Bruhnke and the new COO Karl-Heinz Bierenbreier reacted to this early on, in February and March this year, and are consistently equipping the plants affected with new management, new structures and markedly improved processes. Despite sustainable advances which have now been made in production processes and product quality, the losses in these plants will impact the 2008 results by EUR 8 m more than planned.
Visiocorp CEO Prof. Ulrich Bruhnke commented: ‘Even if we make noticeable progress with our restructuring measures, there will still be a great deal of strain. As well as the internal burdens of global restructuring, there are also the current risks of the global automotive economy and the negative currency effects.'
Above all, Visiocorp finds confidence in automotive companies’ rising interest in the company’s innovative products, the considerable improvement in the cost-performance ratio and in quality, and the increasing pace of development. This can also be seen from the increased number of patent applications, which doubled in the first quarter of 2008 compared to the same period last year.
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