Trading Update and Management Change
Regulated information
Trading update
Kortrijk, 19 January 2009. FY08 profitability hit by economic downturn but significant improvement in working capital in 4Q08 leads to a better cash position
The results below are unaudited.
Kortrijk, 19 January 2009. Sales for 4Q08 were € 208 m. Total sales for FY08 were € 725 m, down 1.5% compared to 2007. Order intake for 4Q08 was € 204 m. For FY08 the reduction in order intake was 2.7%.
FY08 EBIT before restructuring and impairment charges was severely hit by the world wide economic crisis. It will be below € 10 m versus € 58.7 m in 2007. Underlying the low profitability for 2008 are the very weak performance of the corporate events business as part of the Media & Entertainment division, the decrease in gross margin, the higher provisions taken for bad debt, foreign exchange and higher cost.
Management had originally set out to reduce cost with € 30 m. However, given the further deterioration of the global economy, the cost reduction goal was increased to € 36 m, leading to higher restructuring charges. Restructuring charges are expected to be around € 27 m, higher than the € 20 m communicated with the 3Q08 results in October 2008.
Reducing working capital had been indicated by Barco as being a key priority. Over 2008 working capital was reduced with around 40 m euro, supporting a reduction in net debt to about € 30 m euro from € 53 m at the end of 2007.
The Board of Directors will submit to the Annual Shareholders Meeting not to pay out a dividend over 2008.
Fully detailed 4Q08 and FY08 results will be communicated on 4 February 2009.
Management Change
Martin De Prycker steps down as CEO of BarcoEric van Zele assumes the position of CEO
After seven years of leading the transformation of Barco, Martin De Prycker has informed the Board that he wishes to step down as CEO of the company. The Board has accepted his resignation and has asked Mr De Prycker to support the transition.
The Board has proposed Eric Van Zele, currently a member of the Board, to take up the CEO position. Mr Van Zele has accepted this appointment.
The Board has expressed its appreciation for the contribution Martin De Prycker made to the company.
About Barco
Barco, a global technology company, designs and develops visualization products for a variety of selected professional markets. Barco has its own facilities for Sales & Marketing, Customer Support, R&D and Manufacturing in Europe, North America and Asia Pacific. Barco (NYSE Euronext Brussels: BAR) is active in more than 90 countries with about 3600 employees worldwide. Barco posted sales of euro 747 million in 2007.
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