Orell Füssli Group: Full year results 2005

 

Special factors burden the profit of Orell Füssli

The turnover of the Orell Füssli Group showed an increase of 5% to CHF 337 million. Half of this increase is due to the first time consolidation of former business acquisitions. Due to special factors the net income decreased to CHF 15.2 million, 35% less than previous year.

 

The business segment of security printing an industrial systems was burdened by special factors. The Atlantic Zeiser Group, which is a leading company for individualization of products and documents had to be re-organized after the full integration into the Orell Füssli Group beginning of 2005. Although sales and EBIT achieved satisfying results, the reassessment of some assets and deferred expenses charged the net income substantially. Security printing was running at full capacity but due to low prices in the tough international competition and problems while rolling out new equipment the result turned out to be below expectations. The result Security Printing was further influenced by throughput problems due to printing banknotes on polymer substrate, a speciality which was taken up on industrial scale in 2005.

 

While the publishing activities witnessed further progress with profit, book retailing suffered from a low demand in the first half of the year and was handicapped because of construction sites due to major refurbishment projects at various outlets.

 

The re-organization with the Atlantic Zeiser Group is almost completed and the order level for the security printing is high. Additionally, the favourable economic prospects for 2006 may contribute to success, particularly in industrial activities and book retailing. Orell Füssli expects 2006 sales on the level of 2005 and a return to the profitability of previous years. The closing for 2005 will be for the first time based on IFRS standard. The following figures correspond to the provisional report, which is not yet audited.

 

 

 

 

 

	2005	2004		2004
	IFRS	IFRS	%	FER
Operating income	337.4	322.0	+5	325.5	CHF million
EBIT	27.2	35.9	-24	39.2	CHF million
Net income	15.2	23.4	-35	23.2	CHF million

 

As can be seen by the figures for 2004 the change from SWISS GAAP FER to IFRS standard had not a significant influence on the net income. More important is the change of the EBIT because extraordinary items are reported with SWISS GAAP FER after EBIT, with IFRS before EBIT.

  

Detailed information will be provided at the media conference on April 11^th, 2006, when the annual report will be published. The general assembly will take place on May 10^th, 2006.

 

 

 

 

 

The Orell Füssli Group

As a strategic and financial holding, the traditional company of Orell Füssli combines the three independent business divisions of security printing and industrial systems, book retailing and publishing and employs around 1000 members of staff. Both in terms of technology and quality, the Security Printing and Industrial Systems division is a leader in the security printing sector, in the development and manufacture of systems for security documents and for the individualisation of products and documents. Orell Füssli holds a leading position in German-speaking Switzerland in the Book retailing sector, with 11 wholesale and specialist booksellers and thanks to its links with the Internet (www.books.ch). The Publishing sector includes not only specialist book publishers but also extensive on-line databases containing company and personal information relating to the Swiss economy (www.teledata.ch, www.kompass.ch).