Analytik Jena announces performance adjustment for the financial year 2004/2005
Despite an upturn in the last quarter, Analytik Jena will be unable to reach the Group's original planned figures. Instead of the previously planned figure of > EUR 2.0 million in EBIT, the company now anticipates approx. EUR 0.5 million with sales of around EUR 68 million. Reasons for this are:
In the project business, the realisation of key major projects has been postponed until the next financial year as a result of delayed funding approval from the customers. This results in a pro rata reduction of sales and results in the current year.
The results of two affiliates from the instruments business are impacted by non-recurring effects. Due to the threatened insolvency of a customer, at one company orders had to be cancelled that were scheduled to be realised during this financial year and accounted for approx. 25% of the year's sales. In the second case, decisions taken by operational management led to high losses at the subsidiary. Group management instituted the necessary restructuring measures for both companies immediately and implemented changes to their management bodies in this connection. The Management Board anticipates that it will already be possible to lead these companies back into the black next financial year.
Irrespective of these facts, it must be added that the achievement of the targets for 2004/2005 was already considered very ambitious - although not unrealistic - at the half-year stage. The planning for the current financial year was based on a stable project business and on the instruments business strengthening in the second half of the year. Whilst major projects have been postponed in the project business, the core business in the "Instruments" division - with the Analytik Jena AG business units analytical and bioanalytical solutions - has developed as forecast. Since February this year, Analytik Jena has posted significantly higher incoming orders in comparison to the previous year in both business units. At the start of the second half of the year, the products newly launched on the market are also contributing to the increase in incoming orders.
In connection with the measures implemented, the Board of Directors anticipates that the Group will successfully continue to realise its strategic objectives.
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