/raid1/www/Hosts/bankrupt/TCREUR_Public/030509.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
E U R O P E
Friday, May 9, 2003, Vol. 4, No. 091
Headlines
* C Z E C H R E P U B L I C *
KOMERCNI BANKA: Says Petition for Bankruptcy Is Groundless
* F I N L A N D *
BENEFON OYJ: Explores Possibility for Voluntary Debt Settlement
FINNAIR: April Traffic Volumes Affected by War in Iraq and SARS
* F R A N C E *
PERNOD-RICARD: Head Confident of Outlook, to Appoint New Board
PERNOD RICARD: Shareholders Okay Accounts, Payment of Dividend
PERNOD-RICARD: Consolidated Sales Down 37.8% to EUR740 Million
* G E R M A N Y *
BAYER AG: Financial Results Recover During First Quarter of 2003
BERTELSMANN AG: Results Influenced By U.S. Market And Weak Dollar
EM.TV & MECHANDISING: Sells The Jim Henson Company to Henson
FRESENIUS MEDICAL: Reports Q1 EBIT at Lower End of Expectations
GERLING GLOBAL: Gerling Group Sells Credit Insurer Gerling NCM
GERLING GLOBAL: A.M. Best Keeps Group's Rating, Outlook Negative
HVB GROUP: Norisbank AG Could Be Sold Within Next 4-6 Months
VIVANCO AG: Restructures to Compensate Poor Market Conditions
* I T A L Y *
FIAT SPA: Hopes of Possible Accord With GM Inspire Investors
SAFILO SPA: Corporate Credit Rating at 'BB-', Outlook Stable
* N E T H E R L A N D S *
BUHRMANN N.V.: Reports Lower Net Profit From Ordinary Operations
HELIX CAPITAL: Fitch Downgrades Series 2001-5 Notes to 'CC'
KONINKLIJKE AHOLD: Results of Internal Inquiry to Be Released
VERSATEL TELECOM: Announces Results for First Quarter of 2003
* S P A I N *
TERRA LYCOS: Improves EBITDA by 63% Over First Three Months
* S W E D E N *
SONG NETWORKS: Announces Positive EBITDA for First Quarter
SONG NETWORKS: Moody's Investors Service Withdraws Ratings
TELIASONERA AB: Makes Changes to Comparable Financial Results
* S W I T Z E R L A N D *
CLARIANT AG: Considers Selling LSE Division to Cover Losses
CLARIANT AG: Reports Financial Results for the First Quarter
SEZ GROUP: Reports Reduced Net Sales for First Quarter of 2003
SWISS INTERNATIONAL: Possible Merger With Lufthansa Hikes Shares
SWISS INTERNATIONAL: Appoints Two New Executive Vice Presidents
* U N I T E D K I N G D O M *
BIG YELLOW: Posts GBP2.3 Million Loss Before Tax on Results
CORUS GROUP: Union Calls on Government to Intercede When Needed
EASYJET PLC: Reports Loss After Takeover of Rival Go Fly
EDINBURG FUND: Tilney Could Acquire Private Client Arm Soon
INVERESK PLC: Reports Preliminary Results for 13 Months to Dec.
LONDON CLUBS: Issues Circular in Relation to Sale of Palm Beach
MACFARLANE GROUP: CEO Exits Without Seeing End of Restructuring
MARCONI PLC: Provides Trading Update for Three Months to March
ROYAL & SUNALLIANCE: Notice of Release of First-Quarter Results
SOMERFIELD PLC: Lovering Hires Morgan Stanley in Buyout Approach
===========================
C Z E C H R E P U B L I C
============================
KOMERCNI BANKA: Says Petition for Bankruptcy Is Groundless
----------------------------------------------------------
Notice
According to the provision of (S) 80c para 2 lit. b) Act No.
591/1992 Col., on Securities, and provisions of Stock Exchange
Rules, Section III.
Komercni banka, a. s. is notifying of the fact that the City
Court in Prague was served with filing of the petition in
bankruptcy over the assets of Komercni banka, a. s. elaborated
jointly by Mr. Jaroslav Kulenda, resident at 72 Na Hradku,
Frystak, Czech Republic, and by the company KUM spol. s r. o.,
co-owned by him, with registered office at the same address,
which petition includes Mr. Jaroslav Kulenda's statement that
both he and the mentioned company has a receivable by reason of
compensation for damage against Komercni banka, a. s. amounting
to 27,888,370,820,-- CZK and that, on these grounds, Komercni
banka, a. s. goes bankrupt, as it is not able of meeting these
liabilities.
Komercni banka, a. s. comments this by stating that this petition
is absolutely groundless. The claims asserted jointly by Mr.
Jaroslav Kulenda and his company KUM spol. s r. o. had been
subject to legal and economic analysis with the conclusion that
the asserted claims did not attest to the mentioned person/
entity. The Municipal Court in Prague dismissed the petition in
bankruptcy in the same matter filled in January 2001 (i.e. before
an acquisition of Komercni banka, a.s. by Societe Generale) and
this decision was confirmed by the Supreme Court in Prague. So
this is not a situation that Komercni banka, a. s. is not able of
meeting particular liabilities. On the contrary, Komercni banka,
a. s. refuses to fulfil the asserted claims, because it denies
the existence thereof on good grounds. As far as the amount of
the asserted claims is concerned, it should be noted that the
reason of the asserted claims is allegedly the compensation for
damage to business activities of the mentioned person/entity,
which activities, however, have never amounted to the order of
billion Czech crowns, as the contents of such activities have
been only retail customized manufacturing. So in economic terms,
such extent of damage to the business activities of the mentioned
person/entity is absolutely impossible.
Moreover, the mentioned person/entity have never proven that any
damage was caused to them by Komercni banka, a. s. and that any
liability of Komercni banka, a. s. to compensation for such
damage according to (S) 373 et seq. Commercial Code was
constituted. In this connection, Komercni banka, a. s. notes that
the mentioned person/entity have not sought the asserted claims
in court in a standard way, i.e. by lodging adequate actions for
payment, so it here are grounds to assume that at the moment it
is not actually possible to seek the asserted claims for
compensation for damage, with regard to lapse of the general
forfeiture terms.
According to (S) 12a para. 2 Act No. 328/1991 Col., on Bankruptcy
and
Composition, the decision on the filed petition shall be made by
the Bankruptcy Court without undue delay. Therefore Komercni
banka, a. s., expects the subject petition in bankruptcy to be
refused by the Bankruptcy Court soon. Komercni banka, a. s. notes
in this regard that the subject petition in bankruptcy does not
meet the requisites of the mentioned Act on Bankruptcy and
Composition in terms of contents either. A proper petition in
bankruptcy must prove existence of at least two overdue
receivables against the defendant. The subject petition
elaborated by Mr. Jaroslav Kulenda has not proven the existence
of the claimed receivable, identifying it, moreover, without any
grounds, both as a receivable of the company KUM, spol. s r. o.,
the executive and member of which Mr. Jaroslav Kulenda is, and as
a receivable of Mr. Jaroslav Kulenda, which was intended as
simulation of the alleged existence of two creditors.
Komercni banka, a. s. regards the petition in bankruptcy filed by
Mr. Jaroslav Kulenda and his company KUM, spol. s r. o. as a
reaction to the pending judicial recovery of outstanding
receivables of Komercni banka, a. s. against the company KUM,
spol. s r. o. in a range of several millions CZE and to the
petition in bankruptcy over the company KUM, spol. s r. o., as
this company has overdue debts not only against Komercni banka,
a. s., but also against other entities.
Komercni banka, a.s. has already filled an action in this matter.
Currently, Komercni banka, a.s. considers the filling of other
actions in accordance with potential infringement on Komercni
banka, a.s.
We will keep you informed on further developments of the above-
mentioned case.
=============
F I N L A N D
=============
BENEFON OYJ: Explores Possibility for Voluntary Debt Settlement
--------------------------------------------------------------
As reported, Benefon Oyj in April 24, 2003, filed an application
for statutory corporate re-organization after which the company
has continued negotiations with creditors.
In the negotiations there has arisen a possibility of reaching a
voluntary agreement for debt settlement, comprising all creditors
which, if succesful, would replace the now pursued statutory re-
organization process.
The Board of Directors has today considered that there are
grounds for charting the voluntary debt settlement and decided to
inquire with all creditors about there attitude towards a
voluntary settlement based on subscription of shares and
convertible bonds in debt set-off or on payment program for
smallest debts.
The objective of Benefon in the voluntary settlement is:
-- To continue the chosen strategy of focusing on offering mobile
telematics solutions
-- Rapidly improve the profitabilty of the company
-- Together with the creditors to settle the liabilities that in
April 24, 2003, were put under protection against creditor action
-- Re-construct the balance sheet
Benefon focuses on offering internationally mobile telematics
terminals and solutions for securing lives and assets and for
improving field management. The business plan is based on:
-- Growing market demand for mobile telematics solutions
-- Good, ready products for mobile telematics
-- International customer relations
If the voluntary debt settlement is not possible, the company
will continue to pursue the statutory corporate re-organization
process.
The company will report on the matter with its progress.
BENEFON OYJ
Jukka Nieminen
President
FINNAIR: April Traffic Volumes Affected by War in Iraq and SARS
--------------------------------------------------------------
In April 2003 Finnair carried a total of 538,800 passengers,
which is 14.3 % less than year before. 457,300 of the passengers
were carried in scheduled traffic (-15.2 %) and 81,600 in leisure
traffic (-9.0 %). The total passenger traffic (RPK's) decreased
by 14.9 %, while the capacity (ASK) was down by 6.5 %, resulting
in a passenger load factor (including leisure flights) of 61.9 %,
6.2 points lower than last year. Passenger volumes decreased
throughout the network due to concerns about the war in Iraq and
increasingly towards the end of the month because of caution and
travel restrictions as a consequence of SARS. In comparison with
last year the timing of Easter holidays reduced business
travelling during the third and fourth week of April.
Departure punctuality of scheduled flights was 93.7 % (based on a
fifteen minute standard), 2.9 percentage points better than in
April 2002. Including leisure flights departure punctuality was
93.0 % (+2.5 p.u).
As from January 2003 the traffic performance report will also
include the figures of Finnair's associated company Aero Airlines
AS, to which Finnair handed over most of it's Helsinki-Tallinn
operations in June 1st 2002. In April Aero carried 10,700
passengers with a PLF of 60.1 %.
Scheduled traffic
? RPKs in scheduled traffic (international + domestic) decreased
by 18.7 %. The change in capacity was -4.1 %. Passenger load
factor was 55.4 %, 10.0 percentage points lower than last year.
? In scheduled international traffic, premium traffic decreased
by 22.9 %, while the total number of passengers was down by 16.1
%. Capacity in ASKs was -2.7 %, while RPKs decreased by 19.9 %.
- In European scheduled traffic, ASKs dropped by 6.0 %, and as
RPKs decreased by 14.1 %, the passenger load factor was 54.1 %,
down 5.1 points from previous year.
- In North Atlantic scheduled traffic, capacity decreased by 14.8
%. Change in RPKs was -22.0 %, and passenger load factor for
April was 60.8 %, 5.6 p.u. lower than previous year. Premium
traffic decreased by 38.4 %.
- In Far East scheduled traffic, capacity increase was 9.7 %. The
passenger traffic was down by 27.7 %. Passenger load factor was
56.0 %, 28.9 percentage units down. The number of premium
passengers decreased by 56.6 %.
-- Domestic scheduled traffic decreased by 13.2 % on a capacity
decrease of 9.6 %. Passenger load factor decreased by 2.3 p.u. to
55.3 %.
Leisure traffic
-- ASKs for leisure traffic decreased in April by 13.0 %, and
RPKs decreased accordingly by 6.2 %, resulting in a passenger
load factor of 81.3 %, 5.9 points higher than last year.
Cargo
-- Cargo traffic decreased by 3.6 % in terms of cargo tonnes
carried. Cargo tonnes in scheduled traffic increased by 1.2%, out
of which the biggest volume growth took place in Far Eastern
traffic 18,3. Cargo tonnes in North Atlantic traffic decreased by
11.1 %. Load factor in chartered cargo traffic was 73.2 %.
For the full figures for air traffic during April 2003, please
refer to the stock exchange release.
Next release on traffic statistics will be released on 11 June
2003 at 9 a.m. (7 a.m. UTC).
Finnair Oyj
Communications
May 7, 2003
CONTACT: FINNAIR
Taneli Hassinen, Financial Communications
Phone: +358 9 818 4976
Mr. Petri Pentti, SVP and Chief Financial Officer
Phone: +358 9 8184950
Mr. Christer Haglund, VP Corporate Communications
Phone: +358 8184007
Mr. Petteri Kostermaa, VP Traffic Planning
Phone: +358 9 8188504
Mr. Timo Riihimaki, Director Marketing, Cargo
Phone: +358 9 8185487
===========
F R A N C E
===========
PERNOD-RICARD: Head Confident of Outlook, to Appoint New Board
--------------------------------------------------------------
-- "Net profit from Wine and Spirits (*) should experience
double-digit growth in 2003, excluding currencies", says Patrick
Ricard.
Speaking to Pernod Ricard Shareholders' Meeting, Chairman and CEO
Patrick Ricard confirmed the positive trend in the group's 1st
quarter sales, especially in Asia and Europe, which is in line
with the business plan.
He said: "In view of this, I remain very confident for 2003.
Compared with 2002, net profit from our Wine and Spirits (*)
business should experience double-digit growth at constant
exchange rates".
In addition, Mr Ricard asked shareholders to appoint two new non-
executive directors, William Webb and Didier Pineau-Valencienne,
and to ratify the decision to co-opt Lord Douro.
(*) excluding exceptional items and goodwill amortisation, and at
2002 exchange rates; based on the Wine & Spirits division only.
CONTACT: PERNOD RICARD
Francisco de la Vega/Communications
Phone: +33 (0)1 4100-4095
Patrick de Borredon/Investor Relations
Phone: +33 (0)1 4100-4171
PERNOD RICARD: Shareholders Okay Accounts, Payment of Dividend
--------------------------------------------------------------
The Joint Ordinary and Extraordinary General Shareholders'
Meeting of Pernod Ricard has approved the 2002 accounts and has
decided the payment of a dividend of EUR1.80 per share, plus a
tax credit of EUR0.90, thus giving a gross dividend of EUR2.70.
Taking into account the distribution of bonus shares (one-for-
four) last February, the dividend has increased by 25% compared
to the previous year.
The interim dividend was paid in January 2003 (and in March 2003
for the shares distributed in the bonus share issue).
The net balance of EUR0.90 will be paid on May 15, 2003.
CONTACT: PERNOD RICARD
Francisco de la VEGA/Communications
Phone: +33 (0)1 41 00 40 95
Patrick de BORREDON/Relations Investisseurs
Phone: +33 (0)1 41 00 41 71
PERNOD-RICARD: Consolidated Sales Down 37.8% to EUR740 Million
--------------------------------------------------------------
First quarter performance on target:
17% organic growth in Wine & Spirits sales
The Wine & Spirits division reported a 10.6% rise in first-
quarter sales to EUR713 million (excluding duties and taxes).
This result is primarily attributable to organic growth of 16.8%
and an adverse currency impact of EUR70 million (-10.9%).
Buoyant sales of Chivas Regal and Martell confirmed the
turnaround noted in second-half 2002.
The Group's growth-drivers continued their positive trend,
particularly Amaro Ramazzotti, The Glenlivet, Jameson, Jacob's
Creek and Havana Club.
These strong performances were achieved amid contrasting
political and economic conditions.
Growth in Asia-Pacific was a remarkable 54.4% organic growth.
This was mainly driven by robust sales in countries like
Thailand, India and in China thanks to successful Chinese New
Year promotions. At the end of March, the SARS outbreak had had
no noticeable impact on our performance in the region. In Europe
(excluding France), growth continued briskly (16.1% organic
growth), driven by volumes of Ramazzotti, Havana Club, Chivas
Regal and Martell.
The Americas posted a good quarterly performance (organic growth
+3.4%), particularly in the USA which recorded strong growth of
whiskies and Jacob's Creek, despite the delay of some Seagram's
Gin shipments to April. In France, consumption was sluggish, and
the year got off to a difficult start (-1.4% organically),
particularly for anis brands.
Consolidated sales
Sales excluding Wine & Spirits contracted from EUR547 million to
EUR27 million, reflecting a withdrawal from non-core businesses.
As a result, consolidated sales were down 37.8% to EUR740
million.
To see financials: http://bankrupt.com/misc/PERNOD_RICARD.pdf
CONTACT: PERNOD RICARD
Francisco de la Vega/Communications
Phone: +33 (0)1 41 00 40 95
Patrick de Borredon/Investor Relations
Phone: +33 (0)1 41 00 41 71
=============
G E R M A N Y
=============
BAYER AG: Financial Results Recover During First Quarter of 2003
----------------------------------------------------------------
Operating result up 31 percent
-- Operating profit climbs 80 percent before one-time items
-- Net income rises 12 percent to EUR 586 million
-- Further substantial reduction in net debt
The Bayer Group got off to a successful start in 2003. The
operating result from continuing operations improved by 31
percent to EUR 1,075 million in the first quarter. Disregarding
one-time items, it advanced by 80 percent from EUR 464 million to
EUR 833 million.
"We are very satisfied with the first quarter," commented Bayer
Management Board Chairman Werner Wenning. "After a year of
transition and reorganization, it is clear that the acquisition
of Aventis CropScience and our extensive efficiency improvement
programs are bringing tangible benefits. Provided current
economic conditions do not seriously worsen, we expect to
increase our operating result from continuing operations by a
double-digit percentage in 2003."
Wenning also highlighted the 68 percent improvement in gross cash
flow to EUR 1,402 million and the further EUR 1.1 billion
reduction in net debt since the end of 2002, to EUR 7.7 billion.
Sales from continuing operations grew by 5 percent in the first
quarter of 2003 to EUR 7,356 million. Measured in local
currencies, revenues increased by 16 percent. Group net income
rose by 12 percent to EUR 586 million.
The future business area company Bayer HealthCare had sales of
EUR 2,108 million (compared to EUR 2,410 million in the first
quarter of 2002) and an operating result of EUR 480 million (Q1
2002: EUR 230 million). In the Pharmaceuticals and Biological
Products segment, the operating result climbed by 62 percent to
EUR 199 million despite a 10 percent decline in sales that was
mainly due to currency effects. "Our dedication to improving
profitability is now paying off," explained Wenning.
Sales of Bayer CropScience jumped by 92 percent to EUR 1,661
million, mainly due to the Aventis CropScience acquisition. The
operating result moved ahead to EUR 443 million (Q1 2002: EUR 144
million), also boosted by EUR 33 million in divestment gains and
by earnings on sales of the insecticide fipronil up to the end of
March. This product has since been divested as mandated by the
antitrust authorities.
Despite certain negative factors - mainly currency effects -
earnings of Bayer's two industrial business areas also improved
thanks to the cost-structure programs. Polymers recorded
operating profit of EUR 74 million (Q1 2002: EUR 21 million) on
sales down 2 percent to EUR 2,552 million. In the Chemicals
business area, the operating result increased by 3 percent to EUR
38 million despite a 7 percent decline in sales to EUR 872
million. Commented Wenning: "In the industrial businesses, too,
it is clear that in recent months we have created a solid
foundation for enhancing our performance."
BERTELSMANN AG: Results Influenced By U.S. Market And Weak Dollar
-----------------------------------------------------------------
The tougher market situation in the U.S., along with the weakness
of the U.S. dollar, has made itself felt in Bertelsmann's
quarterly results. While revenues and profits for the first three
months of this year were lower than last year's figures,
Bertelsmann continues to expect Operating EBITA for the full year
to exceed that of the previous year. Comments Bertelsmann CFO
Siegfried Luther: "The results are in line with our expectations
and reflect the difficult overall economic situation. However, we
still expect to make our targets for 2003 and resolutely
strengthen our operating business. Therefore, we are sticking to
the forecast we issued at the annual press briefing, namely that
we will achieve Operating EBITA above that of the previous year."
In the first three months of 2003, Bertelsmann generated revenues
of EUR3.9 billion, vs. EUR4.3 billion during Q1/2002. First-
quarter Operating EBITA amounted to minus EUR58 million, as
opposed to EUR20 million the previous year. Special items totaled
minus EUR60 million (Q1/2002: EUR0 million) and were caused by
the restructuring and integration of the Zomba music company at
BMG. After the group's EUR180 million in regular amortization of
goodwill and similar rights (previous year: EUR199 million),
capital losses of EUR8 million, net interest of EUR33 million,
other financial expense and income (minus EUR48 million) and
taxes (minus EUR12 million), quarterly losses before minority
interests amounted to EUR399 million.
During the previous year, proceeds from the sale of AOL Europe
had led to a quarterly profit of EUR2.5 billion.
Figures at a Glance (in EURmillions)
Bertelsmann Group
Jan 1, 2003 to Mar 31, Jan 1, 2002 to Mar 31,
2003 2002
Revenues 3,934 4,301
Operating EBITA by division (39) 59
Corporate/ Consolidations (19) (39)
Operating EBITA (58) 20
Special items (60) 0
Amortization of goodwill and
similar rights
- regular (180) (199)
- impairments 0 0
Capital gains / losses (8) 2,797
Profit before financial result and
taxes (306) 2,618
Net interest (33) (18)
Other financial expense and
income (48) (44)
Taxes on income (12) (25)
Net income before minority
interests (399) 2,531
Minority interests 2 7
Net income after minority interests (397) 2,538
Investments 249 1,792
At Mar 31, 2003 At Dec 31, 2002
Net financial debt 2,719 2,741
Employees 79,719 80,632
About Bertelsmann AG
Bertelsmann, a media and entertainment company, commands globally
leading positions in the major markets. Its core business is the
creation of first-class media content: Bertelsmann includes RTL
Group, Europe's No. 1 in television and radio, as well as the
world's biggest book-publishing group, Random House, with more
than 100 publishing imprints (Alfred A. Knopf, Bantam, Siedler
Verlag, Goldmann). Gruner + Jahr, the European No.1 in magazine
publishing (stern, GEO, Capital, Femme
Actuelle, Family Circle, Parents), Bertelsmann Music Group (BMG)
with its roughly 200 labels (RCA, Arista, Jive, J Records) and
artists such as Alicia Keys, Dido and Pink, as well as the
special information publisher BertelsmannSpringer also stand for
creativity and powerful brands. Bertelsmann's direct-to-customer
businesses are bundled in DirectGroup: book and music clubs with
more than 40 million members all over the world. The arvato
corporate division bundles the group's media services, which
include the expanding units arvato logistics services and arvato
direct services (distribution, service centers, customer
relationship management), along with state-of-the-art printers,
storage media production and comprehensive IT-services.
CONTACT: Oliver Herrgesell
Senior Vice President Media Relations
Phone: +49 - 5241 - 80-24 66
E-mail: oliver.herrgesell@bertelsmann.com
EM.TV & MECHANDISING: Sells The Jim Henson Company to Henson
------------------------------------------------------------
EM.TV & Merchandising AG has entered into a binding agreement to
sell the shares of its 100% owned subsidiary, The Jim Henson
Company, to the children of its founder, Jim Henson. The total
consideration from the transaction is approximately USD 89
million, including a cash purchase price of USD 78 million and
USD 11 million cash currently available on the books of The Jim
Henson Company. Other provisions of the agreement remain
confidential.
As planned, the sale, together with the receipt in January 2003
of the pre-payment of the remaining amounts due to it from Sesame
Workshop, allows EM.TV AG to realize the approximate value on its
books of The Jim Henson Company (EUR 110 million at December 31,
2002). As a result, the liquidity of EM.TV and the complete
repayment of the remaining amounts due on its "Junior loan" (EUR
12.5 million) have been secured.
The agreement with the Henson family is subject to the approval
of the EM.TV shareholders at its Annual General Meeting. EM.TV's
Management Board intends to call the Annual General Meeting 2003
at the earliest possible time.
CONTACT: Frank Elsner
Unternehmen GmbH,
Phone: ++49 - 5404 - 91920 or ++49 - 89 - 99500 - 450
Fax: ++49 - 5404 - 919229
E-mail: info@elsner-kommunikation.de
FRESENIUS MEDICAL: Reports Q1 EBIT at Lower End of Expectations
---------------------------------------------------------------
Summary:
-- Total Revenue of $ 1,299 million up 10%. Adjusted for currency
effects revenue increased by 7%.
-- Net income of $ 70 million
-- Free Cash Flow at Q1 record level of $ 84 million
-- Operating margin in North America improved in Q1 2003 compared
with Q4 2002 - despite lower number of dialysis days
-- International Operating margin impacted by crisis in Middle
East, Latin America, pricing pressures in Central Europe
Fresenius Medical Care AG, the world's largest provider of
Dialysis Products and Services, today announced the results for
the first quarter 2003.
OPERATIONS
First Quarter 2003:
Total revenue for the first quarter 2003 increased 10% (7% at
constant currency) to $ 1,299 million. Dialysis Care revenue grew
by 7% to $ 944 million (+7% at constant currency) in the first
quarter of 2003. External Dialysis Product revenue increased by
16% to $ 355 million (+6% at constant currency) in the same
period. Internal revenue growth was 4.5%.
North America:
Revenue rose 4% to $ 929 million, compared to $ 892 million in
the same period last year. Dialysis Care revenue increased by 5%
to $ 824 million. Same store treatment growth year over year was
3.3%. The average revenue per treatment decreased to
$ 278 in the first quarter 2003 (Q1 2002: $ 284). Adjusted for
the announced intra division billing changes for some Medicare
Peritoneal Dialysis patients and the new billing procedures for
Vitamin D (Zemplar), the revenue per treatment was comparable
with the first quarter 2002. Dialysis Product revenue, including
sales to company-owned clinics, increased 5% to $ 190 million.
Product sales to the available external market grew by 6.2%.
International:
Revenue was $ 370 million, up 26% from the first quarter of 2002,
an increase of 14% adjusted for currency. Dialysis Care revenue
reached $ 121 million, an increase of 24% (19% at constant
currency). Dialysis Products revenue, including sales to company-
owned dialysis clinics, increased 26% to $ 275 million (12% at
constant currency).
Operating income (EBIT) was $ 169 million resulting in an
operating margin of 13.0%. Operating income in the first quarter
of 2002 was $ 174 million including a one-time benefit of $ 6
million. The operating margin was 14.7%. First quarter 2002
operating income before the one-time item was $ 168 million and
the operating margin was 14.2%. The first quarter 2003 operating
margin was below the targeted range for the year as the situation
in the Middle East and Latin America affected the International
margin. Additionally, pricing pressure in Central Europe, in
particular the difficult environment in Germany following a
reimbursement change, impacted the operating margin in the
International area.
In North America the operating margin increased sequentially to
13.2%, despite a lower number of dialysis days than in the fourth
quarter 2002. In the first quarter of 2002, the North American
margin was impacted by the above-mentioned one-time benefit of $
6 million. Adjusted for this effect the comparable North American
operating margin for the first quarter of 2002 would have been
13.5%.
Net income in the first quarter 2003 was $ 70 million, an
increase of 10%. In accordance with the new US-GAAP Accounting
Standard SFAS 145, the loss from the early redemption of the
Trust Preferred Securities in the first quarter of 2002 of
$ 12 million after taxes ($ 20 million before taxes) had to be
reclassified from extraordinary to operating earnings. Excluding
the redemption loss net income in the first quarter 2002 would
have been $ 75 million.
Earnings per share (EPS) in the first quarter 2003 rose 10% to $
0.72 per ordinary share ($ 0.24 per ADS), compared to $ 0.66 ($
0.22 per ADS) in the first quarter of 2002. The weighted average
number of shares outstanding during the first quarter of 2003 was
approximately 96.2 million.
The Company achieved record first quarter operating and free cash
flow levels. Cash from operations increased to $ 125 million. A
total of $ 41 million (net of disposals) was spent for capital
expenditures, resulting in Free Cash Flow before acquisitions of
$ 84 million. A total of $ 28 million in cash was spent for
acquisitions. Free Cash Flow after acquisitions was $ 56 million.
In the first quarter of 2002, Free Cash Flow after acquisitions
was $ 11 million.
As of March 31, 2003, the Company operated a total of 1,500
clinics worldwide [1,090 clinics in North America and 410
clinics International]. In the first quarter 2003, the Company
opened 12 new clinics (de novos). Fresenius Medical Care AG
performed approximately 4.2 million treatments, which represents
an increase of 9% year over year. North America accounted for 3.0
million treatments (+7%) and the International segment for 1.3
million (+16%). At the end of the first quarter 2003, Fresenius
Medical Care treated about 114,300 patients worldwide, which
represents an increase of 7%. North America accounted for ~80,200
patients (+4%) and the International segment for ~34,100 patients
(+16%).
OUTLOOK 2003
For the year 2003, the Company reconfirms its outlook and expects
mid single digit revenue growth before acquisitions (in constant
currency) and net income growth in the high single digit to low
double digits range. Due to the increased risks and
unpredictability the Company expects to achieve net income growth
for the full year 2003 near the lower end within the predicted
range.
Ben Lipps, Chief Executive Officer of Fresenius Medical Care,
commented: "We saw continued momentum during the first quarter of
2003 in our business segments. Our sequential operating margin
improvement in North America was achieved through the continued
focus towards operating efficiencies. In our Dialysis Care
business we have accomplished our desired cost structure and our
unique position with the UltraCare therapy. We are now focused on
revenue and treatment growth. Products revenue in North America
to the Net Available External Market (NAEM) grew at above-market
rates. In International we continued to achieve strong above-
market revenue growth. We also expect to sequentially improve our
International operating margin to the targeted range during the
remaining quarters of 2003. We achieved record first quarter
Operating and Free Cash Flow demonstrating our abilities to work
toward achieving financial targets."
Fresenius Medical Care AG is the world's largest, integrated
provider of products and services for individuals undergoing
dialysis because of chronic kidney failure, a condition that
affects more than 1,200,000 individuals worldwide. Through its
network of approximately 1,500 dialysis clinics in North America,
Europe, Latin America and Asia-Pacific, Fresenius Medical Care
provides Dialysis Treatment to approximately 114,300 patients
around the globe. Fresenius Medical Care is also the world's
leading provider of Dialysis Products such as hemodialysis
machines, dialyzers and related disposable products.
To see financials: http://bankrupt.com/misc/FRESENIUS_MEDICAL.pdf
GERLING GLOBAL: Gerling Group Sells Credit Insurer Gerling NCM
--------------------------------------------------------------
-- Gerling sells credit insurer
-- Rolf Gerling takes over share held by Deutsche Bank
The Gerling Group has made further steps towards its
reorganization. The majority shareholding in the Group's credit
insurer was sold and the stake which Deutsche Bank held in the
Gerling holding company taken over by Rolf Gerling. This creates
a basis for both a successful run-off of Gerling Global
Reinsurance and the re-capitalization of the Gerling Group.
GKB, Deutsche Bank AG, Swiss Re and Sal. Oppenheim signed
contracts that restructure ownership of the credit insurer
Gerling NCM Credit and Finance AG. Gerling reduces its share from
a previous 55.9% to 3.04% receiving in return cash payments of
EUR 120 million from Deutsche Bank and of EUR 60 million from
Swiss Re while also being released by the purchasers of all
liabilities that GKB may have to Gerling NCM. The transaction
corresponds to a corporate value of Gerling NCM of EUR 655
million.
The sale of the Gerling NCM share is subject to approval by the
competent financial supervisory authority.
Of the share which Deutsche Bank held in the Group holding
company GKB (34,6 %) Rolf Gerling took over 28,6 %, with the
remaining 6% now being held by Dr. Joachim Theye, supervisory
board chairman of GKB. "This clear shareholding structure gives
us back our full freedom of movement," comments Bj"rn Jansli,
executive board chairman of GKB.
Rolf Gerling remains determined to win a majority shareholder for
the Gerling Group who will supply the required amount of fresh
capital. A sale of the entire Group also remains among the
possible alternatives. "Rolf Gerling and the executive board
fully agree on this goal," says Bjorn Jansli.
*****
The group will use EUR119 million of the fresh cash to bolster
its ailing re-insurer, Gerling Global Re, which has ceased
writing new business. A wave of claims related to asbestos and
the September 11 terrorist attacks has left this unit inutile.
GERLING GLOBAL: A.M. Best Keeps Group's Rating, Outlook Negative
----------------------------------------------------------------
A.M. Best Co. has commented that the A- (excellent) financial
strength rating of Gerling-Konzern Allgemeine Versicherungs-AG
(GKA) and its core subsidiary Gerling America Insurance Company
remains unchanged following today's announcement that Deutsche
Bank has agreed to give up its 34.5% stake in GKB in exchange for
a similar participation in Gerling NCM Kreditversicherung.
In addition, Swiss Re will increase its share in the credit
insurer to 47.5%. As a consequence, Rolf Gerling will increase
his stake to 94% of GKB. This transaction will result in a cash
payment of EUR 180 million (USD 202 million) to GKB which will be
partially utilized to improve the liquidity of its reinsurance
operations.
GKB will continue to seek a partner for GKA and Gerling
Lebensversicherungs-AG. A.M. Best believes that the proposed
transaction will enable GKA to continue its current business
strategy of profitable underwriting in the industrial sector,
where it is one the market leaders. This is demonstrated by a
successful 2003 renewal season with average rate increases of 15%
in most lines of business. In the first three months, GKA's
combined ratio improved below 100%, from 106.7% at year end 2002.
However, the outlook remains negative, reflecting A.M. Best
concerns that GKA's business position may ultimately be damaged
if GKB fails to find a partner.
A.M. Best Co., established in 1899, is the world's oldest and
most authoritative insurance rating and information source. For
more information, visit A.M. Best's Web site at
http://www.ambest.com
CONTACT: A.M. BEST CO.
Public Relations
Jim Peavy
Phone: 908/439-2200, ext. 5644
E-mail: james.peavy@ambest.com
or
Rachelle Striegel
Phone: 908/439-2200, ext. 5378
E-mail: rachelle.striegel@ambest.com
or
Analysts
Michael Zboron
Phone: +(44) 20 7626 6264
E-mail: michael.zboron@ambest.com
or
Jose Sanchez-Crespo
Phone: +(44) 20 7626 6264
E-mail: jose.sanchez-crespo@ambest.com
HVB GROUP: Norisbank AG Could Be Sold Within Next 4-6 Months
------------------------------------------------------------
The sale of HVB Group AG's Norisbank AG, believed to generate
around EUR300-500 million for the troubled German bank, is
expected complete within the next 4-6 months.
AFX News Feed cited a source familiar with the situation saying
that once interested parties submit preliminary offers on Friday,
a transaction could be closed within the time frame.
The source said: "The whole process normally lasts around 4-6
months. It promises to be a hot summer."
It is known that HVB is selling the profitable consumer credit
business to refurnish its capital base, which has been eroded by
heavy losses. It incurred losses due to more than EUR2 billion
bad loan charges.
HVB declined to comment but its chairman Dieter Rampl mentioned
that there are "no holy cows" in its drive to return to profit
this year.
Potential buyers for Norisbank reportedly include Deutsche Post
World Net AG's Postbank unit, BNP Paribas, Societe General, Banco
Santander Central Hispano, ING's Diba, and Citibank Germany --
although the former two have reportedly denied any interest, the
news agency said.
Mr. Rampl is disposing non-core assets, and is further planning
to launch a partial initial public offering of a 25% stake in
Bank Austria, and sell HVB's international property business.
The planned asset sales could also see the disposal of HVB's
Hamburg-based Vereins-und Westbank.
VIVANCO AG: Restructures to Compensate Poor Market Conditions
-------------------------------------------------------------
Vivanco, one of the leading European providers of CE-,
IT- and TC-accessories, has announced further measures designed
to strengthen the company with a restructuring concept developed
together with Roland Berger Strategy Consultants. The move was
generally approved by the Supervisory Board and basically affects
the company's sites at Ahrensburg and Trappenkamp.
Essentially, the Vivanco Group will continue with the
restructuring process started in 2002 by transferring several
company functions to its head office in Ahrensburg and to other
suppliers. Until early 2004 some 100 layoffs will have to take
place. Overall cost cuttings will amount to about 12.6 million
EUR.
Investors also agreed to be prepared to support the company's
restructuring process by waiving claims totaling up to 23.6
million EUR.
These measures are designed to compensate the weak market
conditions in the first three months 2003 and the current
negative market expectations for the full year 2003. Weaker than
expected market conditions in 2002 led to a decrease in sales in
some product categories and a negative EBIT. Due to the effects
of the restructuring concept there will be amendments in the 2002
year end results which are currently calculated. Also a business
plan until 2004 will be established.
=========
I T A L Y
=========
FIAT SPA: Hopes of Possible Accord With GM Inspire Investors
------------------------------------------------------------
Shares in industrial group Fiat SpA gained 4.8% to EUR7.27 on
hopes of a possible agreement with US. group General Motors Corp.
The stock rose 31% from a EUR5.50 low on March 31.
A Milan trader told Dow Jones: "It's not linked to fundamentals.
But there's a new business plan on the way and it seems an accord
with General Motors Corp. (GM) is looking plausible again."
Fiat said its senior executives are seeing their counterparts in
General Motors later this month for a "routine" meeting, raising
hopes that the Italian company could finally convince its U.S.
partner to participate in the recapitalization of Fiat Auto, in
which GM holds a 20% stake.
Fiat's new chief executive, Giuseppe Morchio, confirmed the top-
level meeting with GM, although the date for it had not been set
yet.
Fiat plans to throw in EUR5 billion in its core auto unit, and
has so far pitched in EUR3 billion by canceling intra-group loan.
GM has the option of participating in the recapitalization or
risk having its stake in the loss-making unit diluted.
Optimism of the possible deal with GM overrides a decrease in
Fiat's car sales in April.
Fiat's total market share of new car registrations fell in April
to 28.8% from 31% in the year-earlier period, according to the
transportation ministry.
SAFILO SPA: Corporate Credit Rating at 'BB-', Outlook Stable
------------------------------------------------------------
Standard & Poor's Ratings Services said that it has assigned its
'BB-' long-term corporate credit rating to Italy-based Safilo
SpA, the largest manufacturer worldwide for the premium-eyewear
segment. The outlook is stable.
At the same time, Standard & Poor's assigned its 'BB-' debt
rating to the group's EUR650 million senior secured credit
facility maturing between 2009 and 2011, and its 'B' rating to
the senior notes issued by Luxembourg-based subsidiary Safilo
Capital International S.A. and maturing in 2013. The notes--hich
should amount to EUR225 million upon closing of the placement--
are guaranteed by Safilo SpA (the main operating company) and
three other subsidiaries on a senior subordinated basis. The
notes also benefit from a second-priority security interest in
the shares of Safilo SpA.
The ratings reflect Safilo's highly leveraged financial profile,
resulting from the company's delisting in 2002 and the subsequent
buyout of minority interests, which resulted in total debt of
EUR900 million at year-end 2002. Net debt to EBITDA--including
securitization--should range between 4.5x and 4.8x at year-end
2003, and EBITDA coverage of cash interest should not
significantly exceed 2.5x.
"Although these weak credit measures are mitigated by Safilo's
very solid market position in the fast-growing premium-eyewear
segment, an excellent operating track record, and the likely
credit benefits from the recently awarded Armani license,
Standard & Poor's believes that the group's deleveraging plan to
achieve a net debt-to-EBITDA ratio of 2.5x by year-end 2005--
based on substantially higher free cash flow generation--could be
challenged by overall market conditions, (including the US$/EUR
exchange rate), the loss of a major license, or substantial
working-capital needs," said Guy Deslondes, a credit analyst with
Standard & Poor's Corporate Ratings in Milan.
At the same time, Standard & Poor's acknowledges that the new
Armani license--one of the most recognized luxury and eyewear
brands worldwide--could drive significant growth and
profitability at Safilo, underpinned by an excellent start for
both the collection and orders in second-quarter 2003. Moreover,
management's efforts to tighten working-capital management could
have a positive effect on cash flow generation. The risks
associated with the ramp-up of Armani eyewear sales, as well as
Armani's challenging integration and positioning within the
group's license portfolio, are strongly mitigated by management's
proven experience and long-term relationships with its brand
licensors, and by Safilo's very efficient design, manufacturing,
and distribution flexibility.
"Although Safilo should gradually improve debt-protection
measures over the next two years, thus conforming with both its
debt repayment schedules and senior debt covenants, we believe
that the company will most likely need several years to
deleverage and improve credit measures to levels compatible with
a higher rating," added Mr. Deslondes. The group's solid market
position and strong operating track record, combined with the
profitability and cash flow potential provided by the its major
eyewear licenses (in addition to Armani--Gucci, Christian Dior,
and Polo Ralph Lauren), afford a sound degree of downside
protection.
=====================
N E T H E R L A N D S
=====================
BUHRMANN N.V.: Reports Lower Net Profit From Ordinary Operations
----------------------------------------------------------------
x EUR million 1st quarter
2003 2002 D in EUR D at constant
rates
Net sales 2,153.6 2,546.6 -15.4% -5.5%
EBITDA* 135.1 130.4 3.6% 18.2%
Net profit** 91.0 36.9 147% 191%
Net result 77.7 18.5
In euro
Net profit** per share
(fully diluted) 0.57 0.22 159% 190%
Key figures excluding exceptional items
Net profit**
(EUR mln) 5 36.9 -87% -78%
Net profit** per share
(fully diluted
- in euro) 0.02 0.22 -91%
* Earnings Before Interest, Tax, Depreciation and Amortisation
(of goodwill).
** Net profit from operations before amortisation of goodwill.
OUTLOOK
We expect second quarter 2003 results to be lower than the second
quarter of last year. For the remainder of the year, the expected
continuation of positive available cash flow will contribute to a
further decline in net debt. Implemented and planned cost
reduction measures will further contribute to the earnings
development. Given the continued uncertain economic situation we
refrain from giving an earnings forecast for the full year 2003.
CEO's STATEMENT
Commenting on the developments in the first quarter of 2003,
Buhrmann CEO Frans Koffrie said: "We are beginning to reap the
fruits of last year's cost reductions and efficiency improvement
initiatives in all divisions. In North America we managed to
achieve an improvement in margins over the previous quarters,
despite the fact that there is no notable improvement in economic
circumstances. In Europe market conditions remain difficult, and
we do not anticipate an improvement in the short-term.
Nevertheless, aided by a disciplined approach to working capital
management, cash flow remains strong. This allows us to further
reduce debt and weather the adverse market circumstances."
SUMMARY FIRST QUARTER 2003
-- Organically sales increased by 1% in the Office Products North
America Division, while in the other divisions sales declined
organically. This resulted in a 4% organic decrease in sales for
the total Buhmann Group. First quarter net sales totalled EUR
2,154 million (first quarter 2002: EUR 2,547 million). The 15%
decrease includes a 10% negative effect caused by currency
exchange rate movements (mainly due to an 18% drop in the average
exchange rate of the U.S. dollar against the Euro).
-- Net profit from operations before amortisation of goodwill
totalled EUR 91 million, including EUR 56 million of exceptional
items and a tax benefit of EUR 30 million. Excluding these items
first quarter net profit from operations before amortisation of
goodwill totalled EUR 5 million (first quarter 2002: EUR 37
million). Per ordinary share net profit on operations before
amortisation of goodwill totalled EUR 0.57 (excluding exceptional
items and tax benefit EUR 0.02).
-- Cash flow from operational activities totalled EUR 83 million
positive (first quarter 2002: EUR 75 million negative), aided by
continued stringent working capital management. Average working
capital over the quarter decreased from 13.6% to 13.5% of sales.
-- Interest-bearing net debt was further reduced to EUR 1,636
million from EUR 1,735 million at year-end 2002 (including a EUR
41 million positive translation effect) and EUR 2,183 million at
the end of the first quarter of last year (including a EUR 295
million positive translation effect).
KEY FINANCIAL INFORMATION
CASH FLOW AND FINANCING
Working capital continued to benefit from our stringent
management focus. While the normal seasonal upward movement
resulted in a minor increase compared to the previous quarter,
working capital requirements were lower compared to the first
quarter of 2002. Cash flow from operational activities amounted
to a positive EUR 83 million in the first quarter (2002: EUR 75
million negative). Apart from working capital improvements, this
was also attributable to the inclusion of the indemnity payment.
Net interest-bearing debt was reduced by EUR 99 million to EUR
1,636 million from EUR 1,735 million at the end of 2002 and EUR
2,183 million a year ago. As a consequence of early repayments of
bank debts in March 2003, no mandatory redemptions remain this
year. Debt as a percentage of shareholders' equity improved from
96% at the end of 2002 to 88% at the end of the first quarter of
2003. Group equity as a percentage of total assets improved from
33.5% at the end of 2002 to 36% at the end of the first quarter
of 2003.
The four-quarter rolling cash interest cover at the end of the
first quarter was 2.7 times, which equals the level at the end of
the corresponding period a year ago.
EXCEPTIONAL ITEMS
As announced in February, the first quarter results includes an
indemnity payment of EUR 79 million, awarded to Buhrmann as the
outcome of an arbitration case. After deduction of costs and
taxes, this has resulted in an exceptional operating profit of
EUR 58 million. Furthermore, we recorded an exceptional operating
expense of EUR 2 million. Following the receipt of the indemnity
payment, we acknowledged a tax benefit of EUR 30 million
resulting from the release of a valuation allowance regarding the
former ISD (France) investments.
REVIEW BY ACTIVITY
TOTAL OFFICE PRODUCTS OPERATIONS
(NORTH AMERICA, EUROPE & AUSTRALIA DIVISIONS)
x EUR million 1st quarter
2003 2002 D in EUR D at constant
rates
Net sales 1,381.3 1,666.7 -17.1% -3.4%
Added value 374.2 460.9 -18.8% -4.9%
EBITA 51.2 86.1 -40.5% -28.8%
Average capital
Employed 969.9 1,280.4 -24.3% -10.1%
Ratios
Added value/
net sales 27.1% 27.7%
EBITA/net sales 3.7% 5.2%
EBITA/average capital employed 21.1% 26.9%
First quarter office products sales totalled EUR 1,381 million
(first quarter 2002: EUR 1,667 million). Worldwide office
products sales decreased by 1% organically in the first quarter
of 2003, compared to the first quarter of last year, while
eCommerce sales increased to over 30% of Buhrmann's office
products sales. This corresponds with an annual run-rate of EUR
1.7 billion.
Average capital employed decreased sharply, particularly as a
result of various initiatives in the area of working capital
management as well as the impact of currency exchange rate
movements. Our global office products distribution operations
continued to be successful in winning new accounts in the large
account customer segment.
OFFICE PRODUCTS NORTH AMERICA
x EUR million 1st quarter
2003 2002 D in EUR D at constant
rates
Net sales 1,003.3 1,270.9 -21.1% -4.1%
Added value 275.4 355.8 -22.6% -5.4%
EBITA 43.0 71.0 -39.4% -25.4%
Average capital
Employed 767.6 1,067.0 -28.1% -11.7%
Ratios
Added value/
net sales 27.5% 28.0%
EBITA/net sales 4.3% 5.6%
EBITA/average capital employed 22.4% 26.6%
The Office Products North America Division completed the
implementation of its ISIS single operating system, entered the
Mexican market, and added new functionalities to its award
winning E-Way internet ordering tool. First quarter sales
totalled EUR 1,003 million (first quarter 2002: EUR 1,271
million). Organic sales growth was 1%, compared to the first
quarter of last year.
The division recorded a further proportionate increase in sales
of contract items, continued to increase its computer supplies
business, and strengthened its position in the large account
customer segment. Despite the continued shift in the sales mix
towards lower margin sales, the division's progress in margin
management is demonstrated by maintaining a sound gross margin.
Added value as a percentage of sales totalled 27.5% in the first
quarter of 2003, compared to 28.0% a year ago. First quarter
operating profit (EBITA) totalled EUR 43 million. As a percentage
of sales EBITA recovered to 4.3%, from 2.1% in the fourth quarter
and 3.4% in the third quarter of 2002.
OFFICE PRODUCTS EUROPE/AUSTRALIA
x EUR million 1st quarter
2003 2002 D in EUR D at constant
rates
Net sales 378.0 395.8 -4.5% -1.6%
Added value 98.8 105.1 -6.0% -3.3%
EBITA 8.2 15.1 -45.5% -42.9%
Average capital
Employed 202.2 213.4 -5.3% -3.0%
Ratios
Added value/net sales 26.1% 26.6%
EBITA/net sales 2.2% 3.8%
EBITA/average capital employed 16.3% 28.3%
First quarter sales of the combined Office Products Europe and
Australia Divisions totalled EUR 378 million (first quarter 2002:
EUR 396 million). The overall 4% organic sales decline was
similar to the rate of decline in the fourth quarter of 2002 and
is mainly attributable to continued weak market conditions in the
large account customer segments in the UK and the Netherlands,
partly offset by the Australian operations that continued to
realise higher sales. In addition, in countries in which we have
a strong presence in the customer segment of small and medium-
sized enterprises, our operations reported continued sales
growth. Added value remained relatively stable in most countries,
with the notable exception of Germany. Operational costs are
developing as planned, which includes some incidental expenses
related to a new warehouse in Australia. The Office Products
Europe Division has continued the extension of its product offer
with the introduction of office products, paper, and computer
supplies that are being marketed under its own brand name,
Corporate Express. By further streamlining the European branch
network, we work on realising envisioned cost savings. In
Australia and New Zealand, we are successfully continuing product
assortment extensions.
PAPER MERCHANTING
x EUR million 1st quarter
2003 2002 D in EUR D at constant
rates
Net sales 710.3 780.0 -8.9% -5.4%
Added value 112.4 120.4 -6.7% -2.6%
EBITA 14.6 19.8 -25.9% -22.9%
Average capital
Employed 622.0 683.0 -8.9% -5.7%
Ratios
Added value/net sales 15.8% 15.4%
EBITA/net sales 2.1% 2.5%
EBITA/average capital employed 9.4% 11.6%
First quarter sales of the Paper Merchanting Division totalled
EUR 710 million (first quarter 2002: EUR 780 million). The
division reported an organic decline of 7% in first quarter
sales, against the background of a further weakening of the
commercial print market in Europe, which is reflected in a 4%
drop in volumes and 3% lower average prices. While the market
volume continued to decrease, Buhrmann's Paper Merchanting
Division maintained its leading position without compromising its
margins. As a consequence of our decisions to withdraw from
business that yields unsatisfactory returns, we have sacrificed
volume in France and Germany. Added value as a percentage of
sales improved to 15.8%, compared to 15.4% in the first quarter
2002. Operating profit (EBITA) totalled EUR 15 million (first
quarter 2002: EUR 20 million).
GRAPHIC SYSTEMS
x EUR million 1st quarter
2003 2002 D
Net sales 62.1 100.0 -37.9%
Added value 15.5 24.3 -36.0%
EBITA -8.9 0.5
Average capital employed 133.2 125.1 6.5%
Ratios
Added value/net sales 25.0% 24.3%
EBITA/net sales -14.4% 0.5%
EBITA/average capital employed -26.8% 1.7%
The Graphic Systems Division recorded lower sales and earnings
results. First quarter sales totalled EUR 62 million (first
quarter 2002: EUR 100 million), decreasing by 25% organically.
The first quarter is traditionally the weakest quarter for
graphic equipment sales. In addition, the overall sales figure
was affected by the negative effect this quarter of EUR 13
million, due to a change in Dutch accounting guidelines requiring
to record equipment sales after installation, instead of after
delivery. The effect on first quarter EBITA was EUR 2 million.
The full year effect on sales and EBITA is estimated to be EUR 35
million and EUR 8 million respectively. Meanwhile, the division
continues to build successfully on its offer of services,
supplies, and spare parts. Added value as a percentage of sales
increased to 25.0% in the first quarter of 2003 (first quarter
2002: 24.3%). First quarter operating result (EBITA) was a EUR 9
million loss (first quarter 2002: EUR 0.5 million profit).
HOLDINGS
First quarter operating result (EBITA) includes some small
incidental expenses, as well as the exceptional items of EUR 56
million.
Note to editors
There will be a conference call today for analysts starting at
10:00 a.m. CET, that will be webcast live on www.buhrmann.com (a
link can be found within the investor relations section under
"Conference Calls and Presentations"). It is also possible to
listen to the proceedings of the conference call via telephone
number: +31 (0)45 - 631 6905. The audio archive on our website
will be operational shortly after the call.
The publication of the second quarter results is scheduled for
August 7, 2003, and of the third quarter results for November 7,
2003. Further details can be found on our corporate website:
http://www.buhrmann.com
Profile of Buhrmann
As an international business services and distribution group,
Buhrmann is the world's major supplier of office products, paper
and graphic systems for the business market. By combining modern
Internet technology with intelligent logistic processes Buhrmann
is able to distribute these products in a highly efficient way.
Internet sales account for a rapidly growing proportion of total
sales.
With its Office Products Divisions operating under the name of
Corporate Express, Buhrmann is market leader in the business
market for office products in North America and Australia. In
Europe Corporate Express ranks second. Buhrmann is European
market leader in paper merchanting and in the distribution of
graphic systems. The group has its head office in Amsterdam and
generates annual sales of about EUR 10 billion with around 25,000
employees in over 30 countries.
Financials: http://bankrupt.com/misc/BUHRMANN_1Q.htm
CONTACT: BUHRMANN
Corporate Communications
Ewold de Bruijne
Phone: +31 20 651 10 34
E-mail: ewold.de.bruijne@buhrmann.com
Buhrmann Investor Relations
Carl Hoyer
Phone: +31 20 651 10 42
E-mail: carl.hoyer@buhrmann.com
HELIX CAPITAL: Fitch Downgrades Series 2001-5 Notes to 'CC'
-----------------------------------------------------------
Fitch Ratings, the international rating agency, has downgraded
Helix Capital B.V. Series 2001-5 to 'CC' from 'CCC'. At the same
time, Fitch has affirmed the rating of Series 2001-5a at 'AAA'.
The issuer, Helix Capital (Netherlands) B.V. is a special purpose
vehicle incorporated with limited liability under the laws of the
Netherlands. Through a credit default swap Helix provides
protection to Bank of America, N.A. on a EUR1.2 billion reference
portfolio containing 120 reference entities.
The notional value of the portfolio has decreased since the time
of issue to EUR1.17bn from EUR1.2bn following credit events on
Teleglobe, British Energy and Solutia.
Fitch's rating action reflects the decrease in the Series 2001-5
credit enhancement levels due to the actual recoveries on
Teleglobe and expected recoveries on British Energy and Solutia.
The action also reflects a significant deterioration to the
credit quality of certain other reference entities within the
portfolio.
The weighted-average credit quality of the remaining portfolio is
equivalent to a 'BBB' rating, using Fitch's rating factors, down
from 'BBB+' when the deal closed in October 2001.
In light of the size of Series 2001-5 tranche and despite the
deterioration in credit quality of the portfolio, the Series
2001-5a notes are still able to sustain a 'AAA' rating.
The weighted-average Fitch Factor measuring the credit risk of
the assets within the portfolio has increased from 15.91 in
December 2002 to 16.45 in April 2003. Specifically, the portfolio
currently contains 17 sub-investment grade names, as compared to
three in June 2002. The agency will closely monitor any changes
to the existing portfolio and will take further action as
required.
KONINKLIJKE AHOLD: Results of Internal Inquiry to Be Released
-------------------------------------------------------------
The findings of an internal inquiry into a US$500 million profits
overstatement in Ahold's U.S. Foodservice unit could be unveiled
this week.
The Dutch grocery group was already on the final stage of the
investigation Wednesday night, according to the Financial Times.
The retailer hired forensic accountants from PwC and lawyers from
White & Case to investigate the overstatement related mainly to
accounting for vendor allowances, or volume-related rebates from
suppliers in the U.S. unit. The irregularity dates back 2001 and
2002.
The result, which is expected to be presented at a shareholders
meeting next Tuesday, will carry the pronouncement on U.S.
Foodservice's Mark Kaiser, vice president of marketing, and Tim
Lee, vice president of purchasing. Both executives were
suspended in February pending conclusion of the inquiry.
It is also expected to mention chief executive Jim Miller,
although people close to U.S. Foodservice said they did not
expect him to be blamed in the report.
Neither could be reached for comment on Wednesday.
U.S. Foodservice is also under investigation from the US
Securities and Exchange Commission and U.S. Justice Department.
VERSATEL TELECOM: Announces Results for First Quarter of 2003
-------------------------------------------------------------
Financial Highlights
(EUR millions)
Q1 2003 Q1 2002 Growth Q1 2003 Q4 2002 Growth
Revenue 87.1 67.5 29% 87.1 83.4 4%
Gross
Margin % 53% 46% n/m 53% 52% n/m
Adj. EBITDA 13.1 (3.7) n/m 13.1 13.3 n/m
EBITDA 28.1 (3.7) n/m 28.1 10.6 n/m
Capex (17.8) (17.2) n/m (17.8) (19.8) n/m
Adj. EBITDA
- Capex (4.6) (20.9) n/m (4.6) (6.5) n/m
Cash 151.9 633.6 n/m 151.9 191.0 n/m
Fiscal year begins January 1st.
-- First quarter 2003 revenues increased to EUR 87 million or by
4 percent from 4Q02 revenues of EUR 83 million and 29 percent
compared to 1Q02 revenues of EUR 67 million.
-- On-net revenues for 1Q03 were EUR 63 million compared to EUR
58 million for 4Q02 and EUR 43 million for 1Q02.
-- Gross margin as a percentage of revenues for 1Q03 was 53
percent compared to 52 percent for 4Q02 and 46 percent in 1Q02.
-- Adjusted EBITDA in 1Q03 was positive EUR 13 million compared
to positive EUR 13 million (EUR 10 million on a recurring basis)
in 4Q02 and negative EUR 4 million in 1Q02.
-- EBITDA in 1Q03 increased to positive EUR 28 million from
positive EUR 11 million in 4Q02 and negative EUR 4 million in
1Q02.
-- At March 31, 2003, Versatel had approximately EUR 152 million
in cash on its balance sheet.
-- DSL and other on-net copper business and residential lines
increased by 30,515 during 1Q03 for a total of 141,982 at March
31, 2003.
Other
-- In 1Q03, Versatel added approximately 21,000 Zon DSL customers
on its residential DSL offering in The Netherlands.
-- In March 2003, Versatel reached an agreement with Deutsche
Telekom regarding renting central office space in Germany. As a
result of this agreement, Versatel recognized a one-time claim
settlement gain of EUR 15 million in 1Q03.
-- On March 24, 2003, Versatel announced that it has reached
agreement with ARQUES-Group ("Arques"), that owns Tesion
Telekommunikation GmbH ("Tesion") and its wholly owned
subsidiary, Completel GmbH ("Completel Germany"), to merge their
German entities.
Recent Events
-- As of May 7, 2003, Versatel has filed for de-registration from
its reporting requirements with the United States Securities and
Exchange Commission ("SEC").
Versatel Telecom International N.V., today reported first quarter
financial and operating results. Revenues for 1Q03 were EUR 87.1
million compared to revenues of EUR 83.4 million (EUR 81.8
million on a recurring basis excluding EUR 1.6 million of prior
period revenue) in 4Q02 and revenues of EUR 67.5 million in 1Q02.
Versatel will no longer be providing gross billing information as
management believes that revenue is a better indication of
Versatel's financial performance and future growth.
On-net revenues for 1Q03 were EUR 63.4 million compared to EUR
57.9 million in 4Q02 and EUR 43.4 million in 1Q02.
On-net customer additions and the success of Versatel's consumer
operations in Germany and The Netherlands primarily drove this
growth as we continued to leverage our initial investments in
both fiber- and copper-based technologies.
Versatel's gross margin as a percentage of revenues in 1Q03 was
52.5 percent compared to 52.1 percent (51.2 percent on a
recurring basis, excluding the impact of EUR 1.6 million of prior
period revenue) in 4Q02 and 46.2 percent in 1Q02. The increase in
gross margin was driven by the increase in on-net revenues and
the continued rationalization of fixed network costs as Versatel
better utilizes its own network.
Raj Raithatha, Chief Executive Officer, commented: "We have
followed a strong fourth quarter with another quarter of strong
growth across all important operating and financial metrics. I am
most pleased with the continued growth of our on-net revenues,
which now comprise over 72% of total revenue and highlights the
continued success of our local access strategy. Long term, we
would like to generate approximately 80% of revenue from on-net
services. Additionally, during the quarter we launched several
successful initiatives, including a new bundled voice and
internet service offering in the city of Recklinghausen, Germany
that has resulted in several thousand new orders in the first few
weeks."
Selling, general and administrative expenses (SG&A) for 1Q03 was
EUR 32.6 million compared to EUR 30.2 million (EUR 31.4 million
excluding the release of an over accrual of EUR 0.7 million
primarily related to marketing around our financial restructuring
and a release of EUR 0.5 million of bad debt provisions given the
improvement in the quality of our customer base) in 4Q02 and EUR
34.9 million in 1Q02. Marketing expenditures were EUR 2.2 million
for 1Q03 compared to EUR 1.0 million in 4Q02 and EUR 2.4 million
in 1Q02. The increase in SG&A is primarily related to this
increase in marketing expenditures from the launch of new
products and an increase in maintenance expense due to installing
more customers on our network.
In March 2003, Versatel reached an agreement with Deutsche
Telekom related to the provisioning of central office space
associated with our former joint venture, VersaPoint. Under the
agreement, Versatel recognized a non-recurring gain of EUR 14.9
million related to the settlement in 1Q03.
For the quarter ended March 31, 2003, Versatel's adjusted
earnings before interest, tax, depreciation and amortization,
claim settlements, idle building space and bond professional fees
(adjusted EBITDA) was positive EUR 13.1 million compared to
positive EUR 13.3 million (EUR 10.5 million on a recurring basis
excluding EUR 1.6 million of prior period revenue and EUR 1.2
million for the release of over accruals) in 4Q02 and negative
EUR 3.7 million in 1Q02.
For the quarter ended March 31, 2003, Versatel's result before
interest, tax, depreciation and amortization (EBITDA) was
positive EUR 28.1 million compared to positive EUR 10.6 million
in 4Q02 and negative EUR 3.7 million in 1Q02.
Mark Lazar, Chief Financial Officer, commented: "We are pleased
with our quarter over quarter recurring EBITDA improvement in
excess of 25%. This growth continues despite the significant
additional marketing spend required to launch some innovative new
products for the residential and business markets. Although we
are exploiting our debt-free financial position to invest for
future growth, we continue to focus on generating free cash flow
from operations in early 2004 which will provide us even more
flexibility to further increase our customer growth trends."
In 4Q02, Versatel booked a deferred tax liability of EUR 133.9
million in respect of the gain related to the financial
restructuring, whereby any subsequent losses in The Netherlands
are recognized and taken against this deferred tax liability. As
a result, Versatel recognized an income tax credit of EUR 4.3
million related to the net operating losses of the Dutch fiscal
unity during the first quarter of 2003.
Versatel recognized a net profit in 1Q03 of EUR 1.0 million (EUR
18.3 million loss excluding a credit of EUR 4.3 million related
to income tax and a one time gain of EUR 14.9 million related to
the settlement with Deutsche Telekom) compared to a loss of EUR
22.1 million (EUR 282.3 million including a EUR 260.2 million
impairment of fixed assets) in 4Q02 and a loss of EUR 87.6
million in 1Q02. This net profit is not currently recurring in
nature and is primarily related to the income tax credit and
claim settlement in 1Q03. Versatel expects to generate a net loss
in 2Q03 and for the full year 2003.
Versatel's capital expenditures for 1Q03 were EUR 17.8 million.
The capital expenditures for the quarter related primarily to new
customer additions and the building of stock for customer
equipment as we aggressively launch new on-net products. In
total, Versatel's free cash outflows for 1Q03 were EUR 39.1
million compared to a cash inflow of EUR 6.7 million in 4Q02 and
a cash outflow of EUR 88.5 million in 1Q02. The free cash outflow
in 1Q03 was primarily related to the improvement in working
capital and the acquisition of Tesion and Completel Germany that
was paid for at the end of 1Q03, but was not consolidated until
April 1, 2003 and is therefore currently accounted for as a
prepaid asset.
As of March 31, 2003, Versatel had EUR 151.9 million in cash,
cash equivalents and marketable securities on its balance sheet.
As mentioned previously, Versatel will not consolidate the
balance sheet of Tesion and Completel Germany until 2Q03,
therefore the 1Q03 cash figure does not include cash from the
acquired companies. Versatel believes that its organic business
plan is fully funded without a need for third party financing.
Given its significant cash balance and funding position, Versatel
believes it has cash over-funding that will allow it to explore
potential growth opportunities through the acquisition of
customer bases, distressed assets or going concerns in its core
markets of The Netherlands, Belgium and Germany.
Tesion & Completel Germany Integration
On March 24, 2003, Versatel announced the acquisition of Tesion
Telekommunikation GmbH ("Tesion") and its wholly owned
subsidiary, Completel GmbH ("Completel Germany"). Versatel will
consolidate the figures of Tesion and Completel Germany as of
April 1, 2003. Versatel commenced the process of integrating
these companies with its existing German operations and believes
this process will take approximately 12 months to complete.
Versatel will come out with revised financial guidance with its
2Q03 earning release, but believes that Tesion and Completel will
roughly double its revenues in Germany on an annual basis and
will increase recurring EBITDA.
Mr Raithatha commented, "We are very pleased with the initial
integration steps that we have achieved to date. We are in the
process of completing the "quick and obvious" wins and are now
focused on the larger projects including network, billing and IT
integration that will take approximately 6-9 months to complete.
Most importantly, we are pleased with the competency of the sales
organizations where we have experienced several significant
customer wins since completing the acquisition."
Recent Events
Versatel is a Dutch company, with operations in The Netherlands,
Belgium and Germany, and believes it is not necessary to have a
dual listing in the United States and on Euronext Amsterdam. As
of May 7, 2003, Versatel has filed for de-registration from its
reporting requirements with the SEC. After a third party
investigation into its shareholder base, Versatel has determined
it falls below the threshold for SEC reporting requirements.
To see financials: http://bankrupt.com/misc/VERSATEL_TELECOM.pdf
CONTACT: VERSATEL
AJ Sauer
Investor Relations & Corporate Finance Manager
Phone: +31-20-750-1231
E-mail: aj.sauer@Versatel.nl
Anoeska van Leeuwen
Director Corporate Communications
Phone: +31-20-750-1322
E-mail: anoeska.vanleeuwen@Versatel.nl
=========
S P A I N
=========
TERRA LYCOS: Improves EBITDA by 63% Over First Three Months
-----------------------------------------------------------
-- In the first three months of 2003, net income improved by 57%
compared to the same period in 2002
-- Revenue grew 8% over same period last year excluding the
foreign exchange rate's adverse effect and the impact of the
Bertelsmann and Telefonica Strategic Alliances. Compared to the
previous agreement, the new long-term strategic alliance with
Telefonica, signed in February 2003, means lower revenue in the
near term in exchange for profitability, stability and higher
revenue in the long term.
-- Revenue for the January-March period was 153 million constant
first-quarter-2002 euros, excluding the foreign exchange rate
impact. Compared with the same period of the previous year, the
foreign exchange rate effect in the first quarter of all
currencies where transactions are conducted outside the euro zone
yielded a negative accounting impact of 38 million euros for the
first three months of the year. In current euros, revenue for the
period was 115 million euros.
-- EBITDA in current euros (See attachment II & IV) was -15
million euros, an improvement of 63%, or 26 million euros,
compared to the same period last year, and a 26% improvement
compared to the previous quarter. The EBITDA margin in current
euros for the first three months of the year was -13%, an
improvement of 12 percentage points compared to the same period
of last year.
-- Excluding the foreign exchange rate impact, EBITDA (See
attachment II & IV) improved to -13 million euros and the EBITDA
margin improved to -8%, an improvement of 69% and 17 percentage
points respectively over the first quarter of 2002.
-- In the first three months of the year, net income improved by
57%, or 74 million euros, compared to same period last year, to
reach -56 million euros.
-- Terra Lycos ended March 2003 with a total of 3.3 million
paying customers in access, communication and portal services, a
78% increase compared to the same period in 2002.
-- The Company ended the quarter with 419,000 ADSL customers, an
increase of 54% compared to the same period in 2002, and an
increase of 11% compared to the previous quarter.
Terra Lycos (MC: TRR; NASDAQ: TRLY), the largest global Internet
network, today released its financial results for the first
quarter of 2003.
Revenue
Revenue grew 8% over the same period last year excluding the
foreign exchange rate's adverse effect, revenues provided by the
Bertelsmann Agreement in the first quarter of 2002 and revenues
this quarter from the new Telefonica Alliance.
Terra Lycos revenue was 153 million euros in constant first-
quarter-2002 euros, excluding the impact of the foreign exchange
rate. After local currencies were consolidated (63% of Terra
Lycos revenue comes from non-euro currencies), revenue was
adversely affected by 38 million euros by the foreign exchange
rate due to the revaluation of the euro. In more detail, the
exchange rate impacted revenues in Brazil by -26 million euros, -
5 million euros in Mexico, -5 million euros in the US and -2
million euros in Chile. The equivalent revenue figure in current
euros, accounting for the impact of the current foreign exchange
rate, was 115 million euros.
The lower revenue in this quarter was also a result of the new
long-term strategic alliance with Telefonica, which replaced the
agreement with Bertelsmann, and which makes Terra Lycos the
portal and exclusive provider and aggregator of Internet content
and services for Telefonica for the next six years. The
transition from the Bertelsmann agreement to the Telefonica
alliance has yielded a negative revenue impact of 16 million
constant euros in the quarter, however it is important to
highlight that revenue from the alliance in this first quarter
was 19 million euros, out of the 118 million euros estimated for
2003.
The previous agreement produced revenue of 180 million euros from
Bertelsmann and Telefonica in 2002, versus 118 million euros
estimated for this year under the new extendable six-year
alliance. This lower revenue will have an impact on the revenue
reported for 2003.
Although the alliance means less revenue in the short term, it
guarantees profitability and stability for the Terra Lycos
business model in the medium and long term (a minimum of six
years vs 3 years) by assuring a minimum annual positive impact of
78.5 million euros on EBITDA and moving toward greater geographic
and product diversification.
From January to March, 43% of revenues resulted from access
business; 27% from content, portal and communication services;
18% from advertising and e-commerce; 12% from corporate & SMEs
services and other income.
This positive trend in the diversification of Terra Lycos'
revenues began in the fourth quarter of last year as a result of
the transition in the Company's business model. Particularly
noteworthy is the spectacular growth in revenue generated by
communication, portal and content services, which now account for
27% of total revenue, versus 6% in the first quarter of 2002.
The Company's positive move toward charging for content and
communication services through the "O.B.P" (Open, Basic, Premium)
model has meant that, during the first three months of the year,
revenue from subscriptions to value added services, excluding
access, accounted for 29% of total revenue. Examples of O.B.P.
include communication and portal services exclusively provided to
Telefonica in Spain, Telefonica.net and ADSL Solutions. Also, the
Tripod and Angelfire premium personal Web publication services
are being very well received, with a 225% increase to the number
of subscribers compared to the same period last year.
During the quarter, Terra Lycos signed alliances with leading
companies in other sectors, including an agreement with
MotorPress to create Autopista On-line, an innovative portal that
seeks to seize business opportunities in the automotive sector
over the Internet by offering a broad range of value-added
services and content. In Spain, Brazil and the United States,
Terra Lycos has launched the new version of Terra Messenger, an
instant-messaging service that inaugurates a new strategy for the
Company in real-time communications.
March 2003 marked the introduction of the Terra Programming Grid,
in an event patterned after the method television networks
traditionally use to introduce their new programs each season.
The aim was to make marketing and advertising professionals aware
of the most complete Internet content programming: "Terra's
Continents."
Operating Expenses
During the first three months of the year, through efficient
management supported by steady improvement in processes, Terra
Lycos was able to continue the gradual reduction in operating
expenses. During the period, the Company cut its costs by 39%
compared to the same period last year. An important part of these
reductions in operating expenses is the new organizational model
focused on the new Global Operations Unit whose mission is to
generate growth with the launch of new global products and to
provide savings through cost efficiency in product development
and implementation.
Operating Margin - EBITDA
EBITDA (See attachment II&IV) for January-March 2003 improved by
26 million euros over the same period last year, reaching -15
million euros, which is in line with the steady positive trend in
EBITDA over the last ten quarters. EBITDA margin in current euros
was -13%, an improvement of 12 percentage points compared to the
same period last year.
Excluding the impact of the foreign exchange rate, EBITDA for the
first three months of the year in constant first-quarter-2002
euros was -13 million euros, and the EBITDA margin was -8%. This
represents an improvement of 69% and 17 percentage points over
the first three months of 2002.
Net Income
Net income in the first three months of 2003 was -56 million
euros, an improvement of 57%, or 74 million euros, compared to
the first quarter of last year.
The improvement in net income is due to EBITDA improvement,
efficient management during the quarter and the write-down of
assets of 1.4 billion euros that Terra Lycos made at the close of
2002 in a show of transparency and use of conservative accounting
practices, adapting the book value of investments made in the
past to the current condition of the market.
Cash
Terra Lycos has one of the strongest cash positions in the sector
allowing it to finance its operations and seize business
opportunities to continue growing profitably. Efficient cash
management enabled the Company to end the first quarter with 1.73
billion euros.
Operating Results
Terra Lycos ended March 2003 with a total of 3.3 million paying
customers for content, portal, communication services and access,
an increase of 78% compared to the first quarter of last year. As
of March 31, the number of ADSL customers was 419,000, a 54%
increase compared to the first quarter of 2002, and 11% compared
to the previous quarter.
Joaquim Agut, executive chairman of Terra Lycos, said "the
results reflect our positive trend in recent quarters toward
achieving profitability." Mr. Agut added that "efficient
management through steady improvement in processes has been
accompanied by diversification of revenue sources, focusing on
profitable business segments." Mr. Agut said that "this change in
our business model has definitely been supported by the strategic
alliance with Telefonica, which guarantees us long-term
stability, not to mention alliances with other leading companies
and our commitment to launching global value-added products."
To see financials: http://bankrupt.com/misc /TERRA_LYCOS.pdf
About Terra Lycos
Terra Lycos is the global Internet group with a presence in 42
countries and 19 languages. The group, which resulted from the
Terra Networks, S.A. acquisition of Lycos, Inc. in October 2000,
is one of the most popular websites in the United States, Europe,
Asia and Latin America, and it is the foremost access provider in
Spain and Latin America.
The Terra Lycos network of sites includes Terra in 17 countries,
Lycos in 25 countries, Angelfire.com, Atrea.com, Azeler.es,
Direcciona.es, Educaterra.com, Emplaza.com, Gamesville.com,
HotBot.com, Ifigenia.com, Invertia.com, Lycos Zone, Maptel.com,
Matchmaker.com, Quote.com, RagingBull.com, Rumbo.com, Tripod.com,
Uno-e.com and Wired News (Wired.com), among others.
Terra Lycos is headquartered in Barcelona and has operating
centers in Madrid and Boston, among other locations. It is listed
on the Madrid Stock Exchange (TRR) and the Nasdaq (TRLY).
CONTACT: Miguel Angel Garzon
Public Relations
+34-91-452-3921
E-mail: miguel.garzon@corp.terralycos.com
Kirsten Murawski
Public Relations (US)
Phone: +1-781-370-2691
E-mail: kirsten.murawski@corp.terralycos.com
Miguel von Bernard
Investor Relations
Phone: +34-91-452-3278
E-mail: relaciones.inversores@corp.terralycos.com
===========
S W E D E N
===========
LM ERICSSON: Ratings Downgraded to 'BB-', Outlook Still Negative
----------------------------------------------------------------
Fitch Ratings, the international rating agency, has today
downgraded the Senior Unsecured rating of Telefonaktiebolaget LM
Ericsson, the global leader in mobile telecommunications network
equipment, to 'BB-' ('BB minus'). The Outlook remains Negative.
The downgrade follows Ericsson's 1Q03 results announcement on 29
April, in which the company identified further weakening in the
mobile systems market in 2003 and additional restructuring plans.
Specifically the company revised its outlook for the mobile
systems market in 2003 to a decline of over 10%, from its
previous guidance of up to 10%. The company also identified a
series of further restructuring initiatives, including cutting
another 7,000 staff, additional restructuring provisions of
SEK11bn (of which SEK8bn will be in cash) and expected benefits
combining SEK5bn of additional operating expense gains and SEK8bn
through gross margin improvements.
While Fitch recognizes the achievements that are increasingly
apparent in the company's operating performance, further
weakening in the demand environment in 2003, combined with
Ericsson's revenue exposure to negative currency effects and
specific business mix, could result in Ericsson's mobile systems'
revenues tracking lower than the overall market. The additional
restructuring initiatives, while positive in terms of
management's response to the demand environment, include
additional cash costs, which are not insignificant in the context
of the company's currently strong liquidity. Combined with
previously announced plans the company now expects to spend
c.SEK20bn (EUR2.2bn) by the end of 2004 to complete its cost base
restructuring. Further downward pressure in the demand
environment and the possibility of additional cash provisions had
both previously been identified by the agency as possible
downward triggers for the rating (refer to Credit Analysis Report
dated 20 December 2003).
Ericsson's first quarter year on year revenue decline of 30% was
in line with previous guidance, and (according to the company) in
line with normal seasonality. With 7% of the decline due to
negative currency exchange effects, and some 50% of the company's
mobile systems sales based on the US dollar, ongoing currency
impact is of concern to Fitch. Extremely weak sales in TDMA/PDC
also affected results, highlighting the impact of Ericsson's
broad product mix compared with overall mobile market trends -
Ericsson's 2002 mobile systems revenues were down 25% compared
with an overall market fall of 20%. With sales of these legacy
technologies, now representing less than 5% of Systems Sales
however, product mix impact on Ericsson's revenue line should be
lower than in the past. Ericsson's sub-optimal market position in
CDMA (market share 5%), where stronger investment on the part of
the operators might be expected at an earlier stage, is likely to
weigh negatively on revenues.
Fitch notes there is increasing evidence of progress in
restructuring, with the company reporting an adjusted gross
margin of 34.1%, compared with 32.5% in 2Q02 - when the company
set its target of a 2%-4% gross margin gain (to be achieved by
YE03). Operating expense improvements are also on track, with
normalized operating expenses of SEK11.4bn in 1Q03, down some 32%
on 1Q02.
With current cash balances of SEK67bn (EUR7.4bn) and a further
USD1.6bn in available bank facilities, liquidity is good.
However, cash balances will be materially eroded over the next
seven quarters as the company meets the cash restructuring
charges noted above and long-term debt maturities of SEK19.3bn.
Fitch nonetheless expects debt maturities through 2004 to remain
cash covered. With mobile markets set to continue to decline in
2003, some form of stabilization will be needed in 2004 if the
company is to face the refinancing of its medium term maturities
with a degree of confidence, notably the 2006 EUR2.0bn maturity.
While visibility of the operators' spending plans remains
extremely unclear, particularly when looking as far ahead as
2004, Fitch expects some kind of market floor to be met at some
point in 2004. It is the timing and degree to which markets
deteriorate between now and reaching this floor, that ultimately
underpin both the downgrade and ongoing Negative Outlook.
SONG NETWORKS: Announces Positive EBITDA for First Quarter
----------------------------------------------------------
Song Networks Holding AB(1) Adjusted EBITDA (2) for the quarter
was SEK 14 million, compared with SEK -47 million for the first
quarter of 2002. This result includes Arrowhead from January 10,
2003.
Revenues for the first quarter of 2003 were SEK 579 million
compared to SEK 590 million the first quarter of 2002. Revenues
from high margin services as data and Internet increased with
more than 13% compared to the same period the previous year, but
low margin services as voice and other decreased during the
period.
The number of corporate customers was at the end of the period
22,624, an increase of 1,438 compared to 21,186 the first quarter
of 2002.
Directly connected offices/ sites (3) increased with 4,188 to
15,809 during the year from 11,621 the first quarter of 2002. The
number of IP VPN sites at the end of the period was approximately
4,500, which represents an increase of 2,200 from the first
quarter of 2002.
Adjusted cost for sales, general and administration (SG&A) (4)
was SEK 233 million, or 40% of revenues, compared to SEK 284
million or 48% the first quarter of 2002.
Net result for the quarter was SEK -38 million that can be
compared to SEK -336 million the corresponding period the
previous year.
Cash and cash equivalents, including restricted cash, at the end
of the period was SEK 551 million. Financial net cash (5) was SEK
608 million.
Subsequent events:
Cash issuances in relation to Song Networks' financial
restructuring are completed, and the last conversion period to
convert bonds into shares ended May 2. This means that the
financial restructuring is completed and Song is thus virtually
debt free.
At the Annual General Meeting on April 9, 2003, a new board of
directors was elected and Roger Holtback was appointed chairman
of the board.
*****
(1) From Q4 2002 Song Networks does not report according to US
GAAP. All figures are reported according to Swedish GAAP. Song
Networks defines EBITDA as earnings (loss) before interest,
income taxes, depreciation and amortization. "Adjusted" EBITDA is
defined as EBITDA before provisions for social security fees and
compensation expense related to employee stock options, non-
recurring restructuring charges, foreign exchange gains and
losses, and all other reported as Other income/ expense. A "site"
is defined as a customer connection/ office "Adjusted" SG&A is
defined as SG&A before provisions for social security fees and
compensation expense related to employee stock options and
restructuring charges. Financial net debt (-)/Net cash (+) is
defined as the sum of interest bearing liabilities less liquid
assets including unutilized secured bank facility.
CONTACT: SONG NETWORKS
Principal Executive Office:
Box 712 SE-169 27 Solna Sweden
Visiting adress:
Gustav III:s Boulevard 18
Phone: +46 8 5631 00 00
Fax: +46 8 5631 01 01
Home Page: http://www.songnetworks.net
Contact:
Tomas Franzen, Chief Executive Officer
Phone: +46 8 5631 01 11
E-mail: tomas.franzen@songnetworks.net
SONG NETWORKS: Moody's Investors Service Withdraws Ratings
----------------------------------------------------------
Moody's says it has withdrawn all ratings of Song Networks
following finalization of the company's financial restructuring.
The transaction eliminated all outstanding bond debt of the
company formerly known as Tele1 Europe.
TCR-Europe featured Song Networks after Moody's downgraded its
ratings to Caa1 from B3 on grounds of limited financial
flexibility and rapidly deteriorating liquidity cushions.
Song Networks is a data, internet and telecommunications operator
with activities in Sweden, Denmark, Finland and Norway. The
company provides broadband solutions for data, internet and
voice, to large and mid-range businesses in the Nordic region.
TELIASONERA AB: Makes Changes to Comparable Financial Results
-------------------------------------------------------------
Figures for 2002 have been converted to reflect the new
organization in TeliaSonera in order to facilitate comparison
when the first quarter report for 2003 is published on May 8.
To see figures: http://bankrupt.com/misc/TELIASONERA_AB.htm
TeliaSonera, formed through a merger of Telia and Sonera in
December 2002, is the leading telecommunications group in the
Nordic and Baltic regions. TeliaSonera's overall focus is on best
serving its customers in its core business and creating value for
shareholders through stronger profits and cash flows. TeliaSonera
is listed on the Stockholm Exchange, the Helsinki Exchanges and
Nasdaq Stock Market in the USA. Pro forma Net sales 2002 amounted
to 81 billion SEK (EUR 8.8 billion). The number of employees was
29,000.
CONTACT: TELIASONERA AB
Investor Relations
Phone: +46 8 713 60 66
=====================
S W I T Z E R L A N D
=====================
CLARIANT AG: Considers Selling LSE Division to Cover Losses
-----------------------------------------------------------
Clariant AG, which recorded consecutive losses in both 2001 and
2002, is still considering the sale of its Life Science &
Electronic Chemicals division.
Chief executive officer of Clariant Francois Note said in an
interview with AFX News: "At this stage all options are under
review, like the setting up of a separate legal entity. LSE was
our strategic growth area... Now we do not rule out a disposal."
The Swiss chemicals company announced non-core businesses
disposals in late February. The move was then expected to affect
7% of sales and have a positive impact on 2003 results.
Reports said the sale of the LSE unit is not excluded, as
confirmed by chief executive Reinhard Handte. Mr. Handte said
that the company wants to keep all options opened, citing the
possibility of a joint venture or letting the LSE unit stand on
its own.
Mr. Note previously said Clariant should be able to return to
profit in 2003 after 2002's SFR648 million net loss. He declined
to confirm that target today, AFX News said.
"There are too many uncertainties... restructuring is ongoing,"
he said.
However, Mr. Note said Clariant's second quarter performance
should be in line with the first, excluding special factors.
But the group's second half performance tends to be below the
first half's due to seasonal factors.
Clariant's LSE division is reportedly under pressure as of the
moment with first quarter sales down 17% at SFR358 million, or by
10% in local currencies.
LSE's EBITDA dropped by 49% to SFR30 million, or by 45% in local
currencies, leading to an EBITDA margin of 8.4% against 13.6.
CONTACT: CLARIANT INTERNATIONAL LTD
Investor Relations
Rothausstrasse 61
CH- 4132 Muttenz
Switzerland
Fax: +41 61 469 6767
E-mail: investor-relations@clariant.com
CLARIANT AG: Reports Financial Results for the First Quarter
------------------------------------------------------------
Solid sales growth in a difficult market environment
In the first three months of 2003 Clariant increased sales in
local currencies by 4% over the previous year. With the exception
of the Life Science & Electronic Chemicals division (LSE), all
divisions contributed to the sales growth with considerable volume
increases.
Owing to the negative currency effect, however, sales in Swiss
francs fell by 8%. The operating result was reduced by a provision
of CHF 38 mn due to further delays in starting up production at a
plant in the U.S. for the Functional Chemicals division (FUN).
KEY FINANCIAL FIGURES (in CHF mn)
Comparison between 1st quarter 2003 and 1st quarter 2002
(unaudited; figures rounded off)
Change in %
excl. FUN (2003 compared
provision Reported Restated(1) to 2002 restated)
2003 2003 2002 2002 CHF
LC
Net sales 2 106 2 106 2 398 2 278 -8 +4
Gross profit 712 712 801 763 -7 +1
EBITDA(2) 212 250 329 310 -32 -26
EBIT 113 151 194 180 -37 -31
Net income 2 40 88 - - -
As per Mar. 2003 Dec. 2003
Net debt 3 665 3 476
Equity 947 914
(1) The figures for 2002 were restated since in the period under
review the North American hydrosulfite business, the European
emulsions business and the global emulsion powder business as well
as the Portuguese emulsions business were sold. The data represent
the result from the ongoing businesses.
(2) EBITDA (earnings before interest, taxes, depreciation and
amortization) is calculated from operating profit (EBIT) plus
depreciation and amortization.
In the first quarter of 2003 Clariant reported sales growth of CHF
4% in local currencies. All divisions except for LSE contributed
to this growth with higher volumes and an optimized product mix,
while prices were kept stable despite the tough competitive
environment. Sales in Swiss francs fell by 8% to CHF 2 106 mn
owing to the strong appreciation of the Swiss franc against most
of the major currencies.
Gross profit increased slightly to CHF 712 mn (+1%). The decline
in operating profit (EBIT) to CHF 113 mn is due in large measure
to the provision of about CHF 38 mn made by the FUN division owing
to the further delay in starting up production at a new plant in
the U.S. Furthermore, the weak operating result at LSE had an
adverse impact on Group EBIT.
High tax rates and mostly non-cash currency losses were negative
factors impacting the financial result in the first quarter. Net
income came to CHF 2 mn, though it would have been CHF 40 mn
without the special effect mentioned above.
Clariant CEO Roland L"sser said: "Thanks to our solid marketing
efforts we were able to achieve a lasting increase in sales to the
local markets despite tough market conditions. We grew faster than
the market in many of our businesses and were able to keep our
prices stable. Unfortunately the operating performance of our
Group was negatively impacted by special effects."
Debt increased following seasonal patterns, coming to CHF 3 665 mn
as per March 31 compared with CHF 3 476 mn at the end of 2002. By
contrast, equity increased slightly to CHF 947 mn compared with
CHF 914 mn at the end of last year.
Despite the difficult environment, Clariant is maintaining
expenditures for research and development - the engine driving the
company's innovativeness and sustainable growth - at the high
level of 3.7% of sales.
With the economic situation remaining unstable, it is not possible
at the present time to make reliable statements for fiscal 2003.
For the second quarter, Clariant expects its operating performance
to be on a par with that in the first quarter, if the special
effect is factored out.
The company reiterates its goal to reduce net debt to below CHF
2.5 billion at year-end assuming successful completion of disposal
projects.
You can find detailed information on the quarterly result and he
divisions, including tables, on the Internet at
http://www.clariant.com/investors
Calendar of events:
August 5, 2003: Results 2nd quarter
Details of Clariant's strategy will be
communicated to the market by the new CEO, Roland Losser, in a
conference
November 4, 2003: 9-month results for 2003
Your contacts at Clariant
CONTACT: CLARIANT AG
Investor Relations
Phone: +41 61 469 67 48
Fax: +41 61 469 67 67
Iris Welten
Phone: +41 61 469 67 47
Holger Schimanke
Phone: +41 61 469 67 45
Daniel Leuthardt
Phone: +41 61 469 67 49
SEZ GROUP: Reports Reduced Net Sales for First Quarter of 2003
--------------------------------------------------------------
In the first three months of 2003 the SEZ Group received orders
in the amount of CHF 27.4 million compared to CHF 33.5 million in
the same period of 2002. Order backlog on March 31, 2003 was CHF
36.4 million and exceeded the backlog of CHF 31.5 million on
March 31, 2002 by 15.6 percent. With consolidated net sales of
CHF 33.3 million (first quarter 2002: CHF 49.2 million), the
book-to-bill-ratio improved to 0.82 compared to 0.68 in the same
period last year. After restructuring expenses of CHF 1.9 million
the SEZ Group recorded an operating loss (EBIT) of CHF 6.5
million compared to an operating profit of CHF 4.4 million in the
same period of the previous year. Consolidated net loss was CHF
5.3 million compared to a net profit of CHF 3.0 million in the
first quarter 2002. With the significant cost reduction the SEZ
Group will show a positive cash flow with net sales of CHF 130
million. With net sales in the amount of CHF 161 million a
positive result will be achieved.
With an unchanged economic trend, SEZ Group's management expects
net sales between CHF 130 million and CHF 165 million for the
full year 2003. As a result of the strongly reduced cost basis,
the high liquidity and the equity ratio above-average, the SEZ
Group is in the position to benefit from its strong position in
the market for single-wafer-processing and achieve sustainable
growth with surpassing profitability in a long-term.
Key figures (unaudited)
in CHF million in EUR million in USD million
Q1/03 Q4/02 Q1/02 Q1/03 Q4/02 Q1/02 Q1/03 Q4/02 Q1/02
Net sales
33.3 51.1 49.2 22.7 34.8 33.4 24.4 32.9 29.3
Order
intake 27.4 28.6 33.5 18.7 19.5 22.7 20.1 18.4 19.9
Order backlog end of quarter
36.4 40.9 31.5 24.7 28.2 21.5 26.9 29.6 18.7
Book-to-bill-ratio
0.82 0.56 0.68 0.82 0.56 0.68 0.82 0.56 0.68
About SEZ
The SEZ Group is a leading supplier of wet wafer surface
preparation equipment to the global semiconductor manufacturing
industry. The company's breakthrough proprietary Spin-Processor
technology forms the basis of a broad portfolio of single wafer
backside and frontside wafer surface conditioning products for
semiconductor chipmakers worldwide. SEZ maintains development,
manufacturing, sales, marketing and service operations in Europe,
Japan, Asia-Pacific and North America. Registered in Zurich,
Switzerland, SEZ Holding AG is listed on the Swiss Exchange under
the symbol (SWX: SEZN) since 1996.
To see financials: http://bankrupt.com/misc/SEZ_GROUP.pdf
SWISS INTERNATIONAL: Possible Merger With Lufthansa Hikes Shares
----------------------------------------------------------------
Speculations regarding a possible merger of Swiss International
Air with Germany's Deutsche Lufthansa AG sent shares in the
Switzerland-based carrier 50% higher on Tuesday.
At 1450 GMT Swiss shares were up 51.2%, or CHF2.4, at CHF7.3 in
high volumes, off an earlier high of CHF7.99.
The rally was also influenced by rumors of Swiss Air's speedy
entry into one of the big airline alliances. It was further
supported by the decision of an unnamed major Swiss bank to up
its internal price target for the stock to CHF10, a dealer who
chose to remain unidentified told Dow Jones.
The source said the change of hands was made by major investors
rather than retail customers.
Swiss's Chairman Pieter Bouw further fueled rumors of the
possible merger when he said later at the company's annual
meeting in Basel: "We are open to everything, are holding talks,
and intend to play an important role in the (industry's
restructuring) process."
Despite the mounting speculation, Lufthansa remained mum on the
issue. It is understood that a tie-up with Lufthansa would
enable Swiss to join Star Alliance, a network that consists of 16
carriers.
Analysts, meanwhile, are not very enthusiastic about a merger
owing to Lufthansa's own difficulties in the current market
environment.
Swiss is currently seeking a partner after posting a net loss of
CHF1 billion in 2002. The carrier created from bankrupt Swissair
and regional carrier Crossair cuts its fleet and staff to counter
losses, but current conditions dashed its hope to return to black
this year.
SWISS INTERNATIONAL: Appoints Two New Executive Vice Presidents
---------------------------------------------------------------
SWISS has appointed two new Executive Vice Presidents. Daniel
Weder becomes Head of Product & Services, while Martin Isler
assumes charge of the company's Strategy & Network division.
The SWISS Board of Directors appointed two new Executive Vice
Presidents at its meeting on Tuesday, May 6.
Daniel Weder is to become Executive Vice President Product &
Services.
He succeeds Bjorn Naf, who has been appointed CEO of the
company's new SWISS Express regional subsidiary. Weder, 46, was
previously Vice President Cabin Crew, and can look back on a 25-
year career in the airline sector.
Martin Isler has been appointed Executive Vice President Strategy
& Network. Isler, 47, was previously Head of Sales & Marketing
Europe. He succeeds Matthias Hanke, who is leaving the company
by mutual agreement.
CONTACT: SWISS
Corporate Communications
P.O. Box, CH-4002 Basel
Phone: +41 848 773 773
Fax: +41 61 582 3554
E-mail: communications@swiss.com
Home Page: www.swiss.com
===========================
U N I T E D K I N G D O M
===========================
BIG YELLOW: Posts GBP2.3 Million Loss Before Tax on Results
-----------------------------------------------------------
Big Yellow Group PLC, the self-storage company, is pleased to
announce results for the twelve months and fourth quarter ended
March 31, 2003.
HIGHLIGHTS
4th 3rd
quarter quarter
ended ended
31 March 03 31 Dec 02
Annualised revenue GBP19.1m GBP17.3m +10%
Turnover GBP4.42m GBP4.07m +9%
Loss from continuing
operations (see note 5)
Loss before tax
Loss per share
No of customers 13,800 12,400 +11%
Occupied space 875k sq ft 808k sq ft +8%
Year Year
ended ended
31 March 03 31 March 02
Annualised revenue GBP19.1m GBP11.7m +63%
Turnover GBP15.6m GBP8.4m +86%
Loss from continuing
operations (see note 5) GBP1.3m GBP1.9m
Loss before tax GBP2.3m GBP2.3m
Loss per share 2.1p 1.7p
No of customers 13,800 8,100 +70%
Occupied space 875ksq ft 550k sq ft +59%
- Earnings from continuing operations before exceptional items,
depreciation, amortisation and tax of GBP1.3 million (2002: loss
of GBP0.2 million)
- Maiden dividend proposed of 1.0 pence per ordinary share
- 27 stores currently open with a further 5 stores committed
providing 1.9 million sq.ft. of storage space when completed
- Like for like annualized sales for 19 stores open throughout
the year up 41%
- Merchandise, insurance and other sales increased to
13.5% of storage income (March 2002: 12.9%)
David White, Chairman, said: 'We are very much on track with our
strategic aim of creating the premier self storage business in
the UK, as set out at the time of our IPO in May 2000. Big
Yellow has achieved sustainable and growing operating cash flow
and is approaching GBP20 million of annualized revenue and one
million sq ft of occupied storage space.
'We believe that the Group's business model in terms of quality
and location of stores, customer service and brand focus, will
continue to provide sustainable growth in an expanding industry.
Further, our recent experience against a difficult economic
backdrop, which we believe is likely to persist for some time,
gives us comfort about the resilience of our business. The
current year has started well and during calendar 2003 we expect
to start making month on month pre-tax profits.'
To See Financial Statements:
http://bankrupt.com/misc/Big_Yellow.htm
CONTACT: BIG YELLOW GROUP PLC
Phone: 01276 470 190
Nicholas Vetch, Chief Executive
James Gibson, Chief Operating Officer
Weber Shandwick Square Mile
Phone: 020 7067 0700
Louise Robson/ Sally Lewis
CORUS GROUP: Union Calls on Government to Intercede When Needed
---------------------------------------------------------------
Mick Leahy, the leader of main steel union ISTC, said government
intervention is needed to save the operation of Anglo-Dutch
steelmaker Corus.
Mr. Leahy, who blamed the old management for Corus' woes, fears
banks would not renew the group's EUR1.4 billion credit which
runs out in January, or put so many constraints on credit. At
such scenario, the government should offer guaranteed loans to
keep the group's operations, he said.
According to him, the government should "seriously offer
guarantees in terms of loans to underpin its operations because
of the strategic importance of manufacturing in the UK."
He cited to the trade and industry select committee a similar
case done to the nuclear and coal industries and "even in the
Channel tunnel rail link".
The ISTC submitted a written report to the committee's inquiry
into the future of the steel industry pointing out that Belgium
had produced more steel in January than Britain, which had a
population, national output and manufacturing sector almost six
times the size.
But the union, who wants a partnership with the new management,
is hopeful of the company's recovery with the decline of the
pound against the euro.
"We should be able to produce and sell more steel with even a
minimally competent management," officials said.
EASYJET PLC: Reports Loss After Takeover of Rival Go Fly
--------------------------------------------------------
easyJet plc, Europe's largest low-cost airline, announces interim
results for the six months ended March 31, 2003.
easyJet reports record revenues of GBP373m for the first half, up
92% from the same period in the prior year. On a proforma basis,
assuming a combined easyJet and Go Fly in 2002, the underlying
revenue increase is 25%.
easyJet plc generated a loss before tax, goodwill and non-
recurring items for the six month period of GBP24m which compares
to a reported profit of GBP8.3m for the same period in the prior
year. The loss after tax for the period was GBP46.9m, which
compares to a reported profit of GBP0.8 million in the same
period of the prior year.
In the first half net cash inflow from operating activities was
GBP24m.
Highlights of the results (with comparisons on a pro forma basis,
assuming a combined easyJet and Go Fly on 2002) include:
--Passenger numbers up 40% to 9.3m
--Load factor up 1.1% pts to 82.2%
--Average fare GBP37.45, 10.7% lower than last year
--Revenue up 25% to GBP373m
--Aggressive cost control reduced cost per ASK by 8% (before
tax, goodwill and non-recurring items and tax)
--Loss before tax, goodwill and non-recurring items GBP24m
--Loss after tax of GBP46.9m
--Strong cash generation - net cash inflow from operating
activities GBP24m
--GBP346m cash on balance sheet
--Airbus deal for 120 A319 ratified by shareholders
--Integration of Go Fly ahead of schedule
easyJet Chief Executive, Ray Webster, said:
'Our excellent growth in the first half demonstrates the
continued attractiveness to passengers of the easyJet low cost
business model. In addition to an almost 40% increase in capacity
we have increased load factors by 1.1% pts, although at some cost
in yields. The impact of external events, such as the conflict in
Iraq, has placed further pressure on yields, which were
consequently down 10.7% over the period.
'The loss for the first half primarily results from the normal
seasonality of the business. In the first half demand is
traditionally weaker, we schedule most of our planned maintenance
and we experience more weather-related delays. In this half-year
we also lost most of the benefit of the Easter period, as it has
fallen in the second half.
'We have made better-than-expected progress with the integration
of Go Fly and are below budget in respect of the anticipated
costs of the integration, which amounted to GBP5.6million in the
half year. In addition, we are realizing greater benefits than
originally expected. On 17th March 2003 we terminated the option
to acquire Deutsche BA, which has caused GBP9.2million of costs
to be realized in the period.
'The continued expansion at Paris Orly, London Gatwick and East
Midlands, and the development of Newcastle as a base demonstrates
easyJet's continuing strategy of concentrating on network
density. easyJet will operate 105 routes between 38 destinations
in 11 countries over the summer period, an increase of 21 routes
compared to summer 2002.'
Commenting on the trading outlook, Ray Webster said:
'Our business model remains robust and it is clear, as we move
towards the busy summer period, that passengers are still willing
to travel within Europe and they are responsive to price. Since
the end of the half-year, our April passenger volumes were up 34%
and yields were down approximately 3% year on year. This month
benefited from the Easter holiday and from pent-up demand from
the period of hostilities in Iraq.'
'Forward bookings indicate that revenue per flight in May is
tracking close to last year, whereas June appears weaker,
although a much lower proportion of June's seats have currently
been booked. At this point in time it is too early to have
visibility regarding the financial outcome for the full year, as
the strength of fares over our crucial summer period is not
likely to be clear for a couple of months. However, we expect to
maintain high load factors, albeit with yields continuing to be
under some pressure compared to last year, offset to an extent by
the reduction in the rate of growth of capacity which occurs in
the second half of the year.
'In summary, the trading environment is challenging, but the
propensity for travel within Europe remains strong and the number
of passengers flying with easyJet continues to grow.'
To See Financial Statements:
http://bankrupt.com/misc/Easyjet.htm
CONTACT: EASYJET PLC
Toby Nicol, Corporate Communications
Phone: +44 (0) 1582 525 339
Chris Walton, Finance Director
Phone: +44 (0) 1582 525 336
EDINBURG FUND: Tilney Could Acquire Private Client Arm Soon
-----------------------------------------------------------
Liverpool-based fund manager Tilney Investment Management could
soon acquire Edinburgh Fund Manager's private client arm for
between GBP5 million and GBP10 million.
Tilney has about GBP3 billion of managed funds in the U.K. It
already has small operations in Edinburgh and Glasgow, but wants
to expand its business north of the border.
A spokesman for the group declined to comment on the company's
possible acquisitions, but confirmed that Tilney was to play a
part in any sector consolidation.
However, The Herald quoted one source close to the situation as
saying: "It's a done deal. (Tilney) is just waiting for it to be
signed off." An agreement could be made "probably later this
week," the source said.
A spokesman for EFM declined to comment on the issue.
One industry expert said it was difficult to put a price on the
unit, because it "depends on the quality of the business,"
although he mentioned that companies have recently paid around 3%
of the unit's assets under management.
EFM's private client unit has about GBP240 million of funds under
management.
TCR-Europe previously reported that the fund manager's woes,
which stemmed from falling equity markets and a share price
collapse, were aggravated last year when it lost the mandate for
the EUR1.1 billion Edinburgh Investment Trust to Fidelity
Investments.
It was thought that closure was the only option left for the
group by then, the report said.
However, a new management team, which followed the mass boardroom
resignation in November, led by Rod MacRae and Richards have been
attempting to rebuild the firm.
EFM makes annual fees from the unit equal to 0.6% of assets under
management, indicating it generates about GBP1.44m a year from
the private client unit.
The firm reportedly slipped to a net loss of GBP1.7m last year
after a GBP2.5m charge for redundancies and ongoing cost-cutting
measures. Funds under management also plummeted to GBP4.1bn at
the end of January 2003, from GBP7.1bn a year earlier.
CONTACT: EDINBURGH FUND MANAGERS GROUP
Donaldson House
97 Haymarket Terrace
Edinburgh
EH12 5HD
United Kingdom
Phone: (0131) 313 1000
Tlx: 72453
Fax: (0131) 313 6300
INVERESK PLC: Reports Preliminary Results for 13 Months to Dec.
--------------------------------------------------------------
Inveresk announces the completion of its restructuring and
refinancing following a period of weakness in 2002 during which
its banking covenants were breached and its loss making business
and certain assets at Caldwells mill were sold to Klippan AB of
Sweden. The continuing niche speciality mills at Carrongrove in
Scotland and St Cuthberts in Somerset have entered 2003 with a
clean slate both being profitable and highly cash generative.
Highlights
-- Operating mill profit from continuing mill businesses was
GBP3.1M against GBP1.2M in 2001.
-- Restructuring and refinancing completed with exceptional
costs before goodwill write off of GBP17.8M.
-- Losses eliminated by closure of Kilbagie and Westfield mills
and the sale of the business and certain assets at Caldwells
mill.
-- Post year end:-
(i) New medium to long-term bank facilities introduced by Bank of
Scotland.
(ii) New equity of GBP9M (before expenses) raised from existing
shareholders and 15 new institutional investors.
(iii) Balance sheet revitalised through new equity with
enhancement of shareholders funds.
-- Entered 2003 with a clean slate. Continuing mill businesses
at Carrongrove and St Cuthberts profitable and highly cash
generative.
Alan Walker, Chief Executive Officer said
'We are pleased to have put this difficult period of
restructuring and refinancing behind us with its attendant
exceptional costs including redundancies and impairment write
downs. The Company is now fully focused on its niche operations
at Carrongrove and St Cuthberts both of which are profitable and
highly cash generative. The support the Company has received from
customers, suppliers and our workforce since 1st November 2002 is
a testament to the progress we have been making over the past few
months. Following the success of our fund raising and rebanking
we have recovered our credibility and can now view the future
with considerable optimism. I expect the results for 2003 to
reflect the benefit of this recovery.'
To See Financial Statements:
http://bankrupt.com/misc/INVERESK.htm
CONTACT: INVERESK
Alan Walker, Chief Executive Officer
Phone: 020 7240 1234
Gordon Thomson, Finance Director
Phone: 01324 827200
Jan Bernander, Non Executive Chairman
Phone: (00 46) 708 556 400
LONDON CLUBS: Issues Circular in Relation to Sale of Palm Beach
---------------------------------------------------------------
Circular to shareholders in connection with the proposed disposal
of Palm Beach Club Limited and the proposed 50 St James
Transaction
A copy of the above document (which was posted to shareholders on
May 6, 2003) has been submitted to the UK Listing Authority and
will shortly be available for inspection at the UK Listing
Authority's Document Viewing Facility, which is situated at:
Financial Services Authority
25 The North Colonnade
Canary Wharf
London
E14 5HS
Tel. No. (020) 7676 1000
The Extraordinary General Meeting convened to consider the
proposed transactions will now be held at 9.30 a.m. on May 22,
rather that at 10.00 a.m. on May 19, as previously announced.
*****
London Clubs is disposing the Palm Beach casino for GBP36.25
million in cash to Stanley Casinos Ltd, a subsidiary of Stanley
Leisure Plc to reduce indebtedness. It is also planning to offer
for sale and leaseback 50 St Jame's, and form a joint venture
with Celebrity Gaming Limited.
MACFARLANE GROUP: CEO Exits Without Seeing End of Restructuring
---------------------------------------------------------------
The board of Macfarlane Group PLC announces that Iain Duffin has
today stepped down as chief executive and will not seek re-
election as a director at the company's Annual General Meeting to
be held on May 13, 2003.
In his statement to the board, Mr Duffin said the group's major
restructuring program had taken longer and had been more
difficult than originally expected.
The restructuring difficulties had been exacerbated by poor
economic conditions and in particular the loss of business in
Scotland due to the severe downturn in the electronics industry.
Nonetheless, Mr Duffin believed that the restructuring programme
was now nearing completion and that the strategy was clear. It
was therefore the right time to seek a successor with marketing
and sales skills who would take full advantage of the group's
position. Mr Duffin intimated that he would therefore stand down
now as chief executive but that he would be available to help
with particular areas in the short term as the board might
request.
The board thanks Iain Duffin for his efforts over the last four
years. The recent period has been difficult and the board agrees
with Iain Duffin that now is the right time to identify a new
chief executive to take the group forward.
The company had already announced in its preliminary statement of
results for the year to December 31, 2002 that it intended to
recruit a chief operating officer with the capability to become
chief executive. This recruitment process is advancing well and a
number of promising candidates with the ability to be chief
executive have been identified. Until a new chief executive
starts, Sir John Ward will become executive chairman and there
will be some minor reallocation of management and reporting lines
within the business to ensure that proper continuity is
maintained.
CONTACT: MACFARLANE GROUP
Sir John Ward, Chairman
Phone: 0141 333 9666
MARCONI PLC: Provides Trading Update for Three Months to March
--------------------------------------------------------------
-- Continued momentum behind operating performance improvements
-- Core sales GBP426 million; 7 per cent lower than previous
quarter or 4 per cent lower excluding the impact of Core business
disposals and closures completed during Q3
-- Continued improvement in Core gross margin (before exceptional
items) to approximately 24 per cent from 22 per cent in Q3
despite lower sales volumes
-- Core operating cost annual run-rate (before exceptional items)
reduced to around GBP490 million by 31 March 2003, below the
GBP520 million target run-rate; further actions initiated to
reduce annual run-rate below GBP450 million during the current
financial year to 31 March 2004
-- Further significant progress in cash generation
-- Second consecutive quarter of positive operating cash flow
-- Total cash balance GBP1,161 million at 31 March 2003, an
increase of GBP76 million during the quarter driven by further
reductions in working capital, disposal proceeds and foreign
exchange translation gains
-- Financial restructuring almost complete
-- Creditors voted in overwhelming support of Schemes of
Arrangement
-- Court approvals in UK and US pending
-- Marconi Corporation plc shares, warrants and notes expected to
start trading on the London Stock Exchange on 19 May 2003.
Marconi provided a trading update relating to the three months
ended 31 March 2003. All information in this trading update is
based on preliminary, unaudited data from Marconi's management
accounts. The Group expects to publish preliminary accounts for
the year ended 31 March 2003 in respect of Marconi Corporation
plc on 29 May 2003.
Mike Parton, Chief Executive, said: "We have made further
progress in the last quarter, comfortably beating our published
operating expenditure run rate target and continuing to generate
cash. The markets for our products and services continue to
decline but we have been able to limit our sales fall to single
figure percentages in each of the last three quarters. With our
financial restructuring almost behind us the business is well
placed for any market upturn."
Sales
Total Group sales amounted to GBP430 million (Q3 GBP466 million).
In the Core business, in line with previously disclosed guidance
and contrary to the historical seasonal pattern of customer
demand, the Group did not benefit from a seasonal sales uplift
during the final quarter.
Core sales amounted to GBP426 million, a reduction of 7 per cent
compared to the level recorded in the third quarter (GBP456
million). When excluding the impact of business disposals and
closures completed during the third quarter, namely the Group's
South African legacy operations and its US-based subsidiary, SMS,
which accounted for approximately GBP11 million of Q3 Core sales,
the fourth quarter sequential sales decline was approximately 4
per cent.
The GBP4 million sales in Capital related mainly to the Group's
Mobile Tetra business prior to its disposal in March 2003.
Core Sales by Geography
in GBP million FY03
Q1 Q2 Q3 Q4 FY
EMEA 285 285 287 261 1,118
US 153 142 127 117 539
APAC 47 45 29 32 153
CALA 25 10 13 16 64
Core 510 482 456 426 1,874
Market conditions in the Core business during the quarter
remained tough across all major geographic regions and worsened
considerably in the Middle East compared to previous quarters as
a result of the military conflict in the region.
Sales in EMEA fell by GBP26 million or 9 per cent to GBP261
million (Q3 GBP287 million). Relative stability in the Group's
core European markets - the U.K., Germany and Italy - was offset
by a substantially reduced level of sales in the Middle East,
partly due to the completion of phase 3 of a major long-term
service contract in Saudi Arabia as well as a significant general
slowdown in spending in the region. Sales also decreased in South
Africa as a result of the disposal of the Group's South African
legacy operations during the previous quarter as well as a
reduction in capital spending by Telkom South Africa.
Sales in the United States were down GBP10 million or 8 per cent
to GBP117 million (Q3 GBP127 million). An increase in sales of
BBRS equipment was more than offset mainly by lower service
revenues in Outside Plant and Power due to continued reductions
in capital spending by North American service provider customers.
There were signs of some stability in market volumes in APAC and
CALA where sales amounted to GBP32 million (Q3 GBP29 million) and
GBP16 million (Q3 GBP13 million) respectively.
Core Sales by Product Area
in GBP million FY03
Q1 Q2 Q3 Q4 FY
Optical Networks 134 108 96 101 439
Broadband Routing and Switching (BBRS)
38 35 32 37 142
European Access 59 69 69 61 258
North American Access 25 23 23 24 95
Outside Plant &
Power (OPP) 46 34 30 30 140
Other Network Equipment 14 15 11 17 57
Network Equipment 316 284 261 270 1,131
Installation, Commissioning & Maintenance (IC&M)
97 89 93 91 370
Value-Added Services (VAS)
97 109 102 65 373
Network Services 194 198 195 156 743
Core 510 482 456 426 1,874
Network Equipment sales amounted to GBP270 million during the
quarter and accounted for 63 per cent of Core sales (Q3: GBP261
million, 57 per cent). The Group recorded stable or increased
sales in all product areas compared to the third quarter with the
exception of European Access, which had benefited from the effect
of a scheduled software upgrade during the previous quarter.
Sales of Network Services decreased to GBP156 million or 37 per
cent of Core sales (Q3: GBP195 million, 43 per cent). While sales
of IC&M activities remained relatively stable, the Group
experienced a substantial drop in sales of Value-Added Services
during the quarter, largely driven by a significant decrease in
the level of sales in the Middle East. This was mainly due to a
significant slowdown in customer spending on telecommunications
services as well as to the completion of phase 3 of a long-term
service contract in Saudi Arabia in the previous quarter. The
Group's exit from its SMS subsidiary in December 2002 also
contributed to the lower level of Value Added Service sales in
the quarter.
Sales of the Group's US-based businesses (defined as the
equipment and service activities of BBRS, OPP and North American
Access) amounted to GBP117 million during the fourth quarter (Q3:
GBP125 million). BBRS and OPP service activities are consolidated
within Network Services and amounted to GBP16 million and GBP15
million respectively during the quarter (Q3 GBP19 million and
GBP20 million).
Key Customers and Business Wins
Marconi continued during the fourth quarter to benefit from the
support of its strong customer base of predominantly incumbent
operators and government agencies. The majority of Core sales in
the period were derived from existing frame contracts.
The ten largest customers during the fourth quarter were
BellSouth, BT, Telecom Italia, Telkom South Africa, US Federal
Government, UK Government, Verizon, Viag Interkom (Germany),
Vodafone Group and Wind (Italy). In aggregate, these customers
accounted for 59 per cent of fourth quarter Core sales, a similar
level to the level of business generated with the Group's top ten
customers in each of the three previous quarters of the financial
year. BT remains the Group's largest customer and accounted for
20 per cent of Core sales in the fourth quarter (Q3: 19 per
cent).
Marconi has announced a number of important contract awards since
1 January 2003. These include further successful business wins
for the Group's multi-service Access Hub with Telecom Italia,
Wind (Italy), LDCOM (France) and Jersey Telecom, a new frame
contract with Telecom Italia for the installation of an optical
backhaul network based on Marconi's recently launched optical
switch, the MSH2K, the first commercial sale of the Group's
Softswitch product to Jersey Telecom, contracts for the supply of
Marconi's ServiceON network management systems to DTAG (Germany)
and Telstra (Australia) as well as various long-term service
contracts in Europe including Tube Lines (UK) and Deutsche Bahn
and Netcologne (both in Germany)
Core Operating Performance FY03
Q1 Q2 Q3 Q4 FY
Gross Margin1 (as % of Sales) 17.5 21.62 22.1 c.24 c.20
Annualised operating cost exit run-rate1 (in GBPm)
760 635 550 490 490
before exceptional items excluding the impact of GBP25 million of
additional stock provisions which reduced Q2 gross margin to 16.4
per cent
At approximately 24 per cent of sales, Core gross margin (before
exceptional items) showed an approximate two percentage point
improvement compared to the level of 22 per cent recorded in the
previous quarter. Cost savings achieved in both Network Equipment
and Network Services during the quarter were further enhanced by
the positive impact of the one-off sale of higher than average
margin wireless software licences in the United States, increased
sales volumes in Network Equipment and the Group's exit from its
poorly performing SMS subsidiary.
The Group exceeded its previously disclosed target to reduce the
annualised operating cost run-rate (before exceptional items) in
the Core business to GBP520 million by the end of the financial
year, achieving an actual run-rate of around GBP490 million by 31
March 2003 (GBP550 million at 31 December 2002). Savings were
achieved across all categories of expenditure and were driven by
headcount reductions as well as, in research and development, a
reduced level of materials spend and lower depreciation. In
addition during the quarter, further cost reduction actions were
initiated to enable the Group to reduce its annualised operating
cost run-rate below GBP450 million during the current financial
year to 31 March 2004.
At 31 March 2003, the Group employed approximately 15,300 people
in its Core business, down from just over 16,000 at the end of
December 2002. Marconi expects Core headcount to fall below
14,000 as it continues to implement its cost reduction
initiatives and, as previously disclosed, the Group will continue
to incur exceptional cash costs in order to complete the further
planned headcount reductions.
Group Cash Flow
The Group recorded its second consecutive quarter of positive
operating cash performance at a similar level to that recorded in
the previous quarter (Q3 GBP65 million). This was largely as a
result of further reductions in working capital and the Group's
improved operating performance. Depreciation remained stable.
The Group recorded a net non-operating cash outflow from costs
relating to the Group's operational and financial restructuring
processes which were slightly lower than the level recorded in
the previous quarter and were partially offset by disposal
proceeds (Ultramast, Tetra, On-Line) and net interest received on
the Group's cash balances. As previously disclosed, in the
context of the financial restructuring, the Group did not pay
interest on its bond and syndicate bank debt due during March
2003. The accrued but unpaid interest forms part of the scheme
claims.
Overall during the quarter, the Group recorded a positive cash
inflow of GBP47 million. This, combined with a favourable net
exchange translation gain on the Group's cash balances of GBP29
million, led to a closing cash balance of GBP1,161 million at 31
March 2003 (GBP1,085 million at 31 December 2002). Of the total
Group balance at 31 March 2003, GBP1,158 million was held within
Marconi Corporation plc.
Net debt increased by GBP7 million during the quarter to GBP2,826
million at 31 March 2003, with the increased cash balance being
more than offset by unfavourable foreign exchange translation
movements on the Group's bond and syndicate bank debt.
The following table sets forth the composition of the Group's net
debt at 31 March 2003:
GBPm
Euro and US$ Bond Debt 1,762
Syndicate Bank Debt1 2,141
Bilateral and Other Bank Debt2 84
Gross Financial Indebtedness 3,987
Cash3 1,161
Net Financial Indebtedness 2,826
including approximately GBP84 million relating to the termination
of interest swap and equity derivative arrangements
including GBP32 million relating to Albany Partnership Limited
Loan Notes included in the Scheme of Arrangement
At 31 March 2003, the Group had a total restricted cash balance,
defined as cash pledged or advanced as collateral, of GBP964
million. Of this GBP798 million reflected the cash held in
secured accounts in the context of the Group's financial
restructuring, GBP135 million reflected cash collateral placed
against bonding facilities; GBP17 million reflected cash in the
Group's captive insurance company and GBP14 million reflected
cash deposited against secured loans in Italy. Of the Group's
GBP197 million unrestricted cash held outside of the secured
accounts as at 31 March 2003, GBP89 million was a combination of
cash in transit and global working capital balances held at
subsidiary level or within the Group's joint ventures and the
remaining GBP108 million held in money market deposits in the
Group's Treasury centres.
Pensions Accounting
The actuarial assessment, under accounting standard FRS17
"Retirement Benefits" of the Group's defined benefit pension
scheme liabilities and valuation of pension assets is currently
being prepared and the results will be reflected in the Group's
consolidated financial statements for the year ended 31 March
2003.
The recently completed tri-annual actuarial valuation of the
Group's largest pension scheme, the UK plan, showed the plan as
at 5 April 2002 to be 100 per cent funded on an on-going basis
and between 115 and 119 per cent funded on a minimum funding
requirement (MFR) basis. As a result, Marconi and the Trustee of
the UK plan have agreed that the employer's contribution rate
effective from 6 April 2003 will remain unchanged at 8.2 per cent
of pensionable payroll. In addition, it has been agreed that the
previously disclosed additional funding of GBP7 million per annum
to cover past service deficits is no longer required.
Financial Restructuring
As announced on 25 April 2003, at separate meetings of scheme
creditors of Marconi plc ("plc Scheme Creditors") and Marconi
Corporation plc held on that date, the schemes of arrangement in
relation to each of Marconi plc and Marconi Corporation plc (the
"Schemes") were overwhelmingly approved by scheme creditors.
Approval of the Schemes at those meetings was a key pre-condition
for the Schemes becoming effective.
In order for the Schemes to become effective and legally binding,
UK Court orders sanctioning the Schemes must also be obtained.
The Court orders must then be sealed and copies delivered for
registration to the Registrar of Companies in England and Wales.
The UK Court hearing to sanction the Schemes is currently
scheduled to begin on 12 May 2003.
Marconi plc and Marconi Corporation plc will not take the
necessary steps to make the Schemes effective unless, inter alia,
permanent injunction orders of the US Bankruptcy Court are
obtained in respect of the Schemes and all other conditions
precedent under the working capital and performance bonding
facilities are satisfied or waived. The US Bankruptcy Court
hearing is currently scheduled to take place on 14 May 2003.
Marconi today confirmed that it will issue Junior Notes in the
amount of US$487 million, which is equivalent to GBP306 million
at the Currency Rate as defined in the Schemes. Upon completion
of Restructuring, Marconi expects its gross financial
indebtedness to amount to approximately GBP796 million,
comprising Senior Notes (GBP450 million), Junior Notes (GBP306
million) and Other Bank Debt including finance leases (GBP40
million).
It is currently expected that the Schemes will become effective,
with trading in the new securities to be issued by Corp
commencing on the London Stock Exchange on 19 May 2003.
Definitions
Operating cash flow is defined as cash flow from continuing
operations before net capital expenditure and exceptional items
Operating costs are defined as research and development costs,
general and administrative costs, selling and distribution costs
and other costs but excluding goodwill amortisation and
exceptional items
Appendix 1 : Additional analysis for the year ended 31 March 2003
Core Sales by Product Area and by Geography
in % FY03
EMEA US APAC CALA
Optical Networks 75 1 18 6
Broadband Routing and Switching (BBRS)
17 65 13 5
European Access 85 - 10 5
North American Access - 100 - -
Outside Plant & Power (OPP) - 91 - 9
Other Network Equipment 78 - 17 5
Installation, Commissioning & Maintenance (IC&M)
72 24 1 3
Value-Added Services (VAS) 61 33 5 1
US Businesses - Service Sales
During the two financial years ended 31 March 2002 and 31 March
2003, service sales of the Group's OPP and BBRS businesses were
consolidated within Network Services (IC&M and VAS respectively).
The following table sets forth the quarterly progression of these
sales during the year ended 31 March 2003:
in GBP million FY03
Q1 Q2 Q3 Q4 FY
OPP Services (in IC&M) 28 18 20 15 81
BBRS Services (in VAS) 19 24 19 15 77
Appendix 2 : Additional analysis for the year ended 31 March 2002
Core Sales by Product Area for the year ended 31 March 2002
in GBP million FY02
Q1 Q2 Q3 Q4
Optical Networks 139 208 189 191
Broadband Routing and
Switching (BBRS) 78 111 85 87
European Access 34 31 24 32
North American Access 52 61 40 56
Outside Plant & Power (OPP) 91 65 48 43
Other Network Equipment 38 39 16 45
Network Equipment 432 515 402 454
Installation, Commissioning &
Maintenance (IC&M) 93 140 105 104
Value-Added Services (VAS) 123 143 125 135
Network Services 218 283 230 239
Core 650 798 632 693
US Businesses - Service Sales
During the two financial years ended 31 March 2002 and 31 March
2003, service sales of the Group's OPP and BBRS businesses were
consolidated within Network Services (IC&M and VAS respectively).
The following table sets forth the quarterly progression of these
sales during the year ended 31 March 2002:
in GBP million FY02
Q1 Q2 Q3 Q4 FY
OPP Services (in IC&M) 50 43 35 26 154
BBRS Services (in VAS) 19 18 17 18 72
Core Operating Profit/Loss for the year ended 31 March 2002
in GBP million FY02
Q1 Q2 Q3 Q4 FY
Network Equipment (175) (41) (117) (131) (464)
Network Services (9) 11 5 28 35
Other (13) (20) (16) (15) (64)
Core (197) (50) (128) (118) (493)
About Marconi plc
Marconi plc is a global telecommunications equipment and
solutions company. The company's core business is the provision
of innovative and reliable optical networks, broadband routing
and switching and broadband access technologies and services. The
company's customer base includes many of the world's largest
telecommunications operators.
The company is listed on the London Stock Exchange under the
symbol MONI.
ROYAL & SUNALLIANCE: Notice of Release of First-Quarter Results
---------------------------------------------------------------
Royal & Sun Alliance announces that its First Quarter results
2003 will be released on Thursday 22 May 2003 at 7am. A briefing
to analysts will take place at our offices, Leadenhall Court, 1
Leadenhall Street, London at 9.30am and can be accessed live via
the company website (www.royalsunalliance.com).
For subscribing fund managers the meeting can also be viewed via
the RAW Financial Network.
An indexed version of the presentation will be available on the
website and on RAW shortly after the meeting finishes.
CONTACT: ROYAL & SUN ALLIANCE INSURANCE GROUP PLC
30 Berkeley Square, London
W1J 6EW Telephone
Phone: +44 (0)20 7569 6137
Fax: +44 (0)20 7569 6288
SOMERFIELD PLC: Lovering Hires Morgan Stanley in Buyout Approach
----------------------------------------------------------------
Businessman John Lovering has hired advisers Morgan Stanley to
help him court Somerfield with a GBP600 million offer for the
latter's business, a Stock Exchange report revealed.
The document mentioned Morgan Stanley as "connected" party.
The move follows Somerfield's rejection of a GBP509 million
takeover, or 103p per-share offer, late last month.
Mr. Lovering is now considering a raised offer of 110p-120p,
worth nearly GBP600 million at the top of that range, according
to the Financial Times.
Previous report of TCR-Europe mentioned analysts interviewed by
Times Online saying Somerfield's board might accept the offer if
the entrepreneur increased his offer to between 115p and 120p.
Dresdner Kleinwort Wasserstein is reportedly advising
Somerfield, while Bridgewell is understood to be leading the
negotiations.
Somerfield operates 1,300 stores under two fascias - Kwik Save
and Somerfield. It has struggled in the competitive food retail
market, dominated by Tesco.
*************
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter -- Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Trenton, NJ
USA, and Beard Group, Inc., Washington, DC USA. Kimberly
MacAdam, Larri-Nil Veloso, Ma. Cristina Canson, and Laedevee
Gonzales, Editors.
Copyright 2003. All rights reserved. ISSN 1529-2754.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.
Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.
The TCR Europe subscription rate is US$575 per half-year,
delivered via e-mail. Additional e-mail subscriptions for
members of the same firm for the term of the initial subscription
or balance thereof are US$25 each. For subscription information,
contact Christopher Beard at 240/629-3300.
* * * End of Transmission * * *