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Possehl Navigates to Robust Earnings in 2009 Crisis Year
Sales Decline of 20% to 1.220 Billion EUR
Earnings Before Taxes of 21 Million EUR
Net Financial Assets of 28 Million EUR
Sales and Earnings Growth Expected in 2010
Lübeck, Germany, March 11, 2010 – Lübeck-based L. Possehl & Co. mbH finished the 2009 crisis year with sales of 1.220 billion EUR. That corresponds to a decline of approximately 20% compared with the previous year. The decline in earnings before taxes of 65 million EUR to 21 million EUR reflected the severe global recession, which also affected key markets for the Possehl Group.
Thus, Possehl's corporate commitment to risk diversification passed its stress test. Moderate losses in several mechanical engineering areas and in the Electronics division could be more than offset by excellent, stable results in other divisions. The improvement in net liquidity from -13 million EUR in 2008 to +28 million EUR in 2009 was particularly encouraging. It was possible to achieve this significantly improved financial position despite investing a double-digit million Euro amount in new equity holdings.
• Thus, in early 2009, Possehl took advantage of sharply lower stock prices to acquire a 15% stake in the SDAX-listed Elexis AG. Elexis is a market leader in the area of factory automation. Possehl views this stake as a long-term financial investment.
• In order to strengthen the Special-purpose Construction division, which was particularly successful in 2009, 100% of Euroquarz GmbH was acquired at the end of 2009. Euroquarz GmbH is a producer of silica sand, quartz gravel and dry ready-mixed mortar. Subsidiaries are active in the areas of specialized mortar and building chemicals. Consequently, the Special-purpose Construction division has grown to an annual sales level of 150 million EUR without abandoning the position of niche supplier.
Optimistic for 2010
For the current 2010 fiscal year, Possehl expects a significant increase in sales and earnings. Specifically, excellent and stable contributions to earnings are anticipated in 2009 for the especially successful Special-purpose Construction and Precious Metals Processing divisions as well as for rubber mixing technology. In the Textile Finishing Systems, Electronics and International Trading divisions, which were particularly affected by the recession, a distinct clear upward trend has been noted in the early months of 2010.
Uwe Lüders, Chairman of the Executive Board of L. Possehl & Co. mbH:
"The global recession has not yet been overcome, although a clear upward trend is already evident in certain segments. While we will not yet match the sales and earnings level of the pre-crisis period in 2010, we do expect to make it halfway there. Our liquidity reserve, which expanded last year, enables us to take consistent advantage of opportunities for company acquisitions."
New Division Established for Small and Medium-Sized Business Participations
In order to be able to execute company acquisitions of small-to-medium sized enterprises with sales in the 10 million EUR to 50 million EUR range, Possehl established a new division for small and medium-sized business participations last year. The goal is to consolidate relatively small and medium-sized companies - primarily based in Germany - operating in various sectors.
Contact:
Mario Schreiber
L. Possehl & Co. mbH
Head of Personnel/
Corporate Communications
Beckergrube 38-52
23552 Lübeck, Germany
Phone: +49 (0) 451 148-304
Fax: +49 (0) 451 148-1153
Email: mschreiber@possehl.de
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