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| Zumtobel returns best performance in the company's history  Zumtobel Group based in Dornbirn, Austria, closed its books on the 2006/07 financial year with record results. Net profit for the year more than doubled, rising from EUR 49.5 million in the previous year (PY) to EUR 103.6 million. In absolute terms, this was the best performance in the history of Zumtobel AG. In relative terms, too, the group's operating performance showed a further improvement: EBIT (adjusted for exceptional items and non-recurring expenses) rose 13.3% to EUR 112.3 million, enabling the Zumtobel Group to attain the targeted improvement in EBIT margin, which reached 9.1% (PY adjusted EBIT margin: 8.5%).Along with the increased operating efficiency, the group's improved performance was largely driven by further revenue growth. Group revenues moved ahead 5.6% from EUR 1, 168.0 million in the previous year (adjusted for the sale of the airfield lighting business) to EUR 1, 234.0 million in the year under review. Thus the Zumtobel Group was able to continue the previous year's upward trend and once again posted stronger growth than the European construction industry, which is itself making a strong recovery. As in the previous year, both divisions – the Zumtobel Lighting Division with the Thorn and Zumtobel brands and the TridonicAtco Division in the lighting components sector – contributed to growth. Revenues increased 3.2% in the luminaire business, while TridonicAtco posted two-digit growth as sales moved ahead 11.6%. This surge in revenues was mainly based on two factors: first, the ongoing replacement of magnetic ballasts with innovative, energy-efficient but higher-priced electronic ballasts, and second, the higher price of copper for magnetic ballasts, which was successfully passed on to the market. The LED business recorded a 30% increase in revenues to EUR 21 million. Along with the LED business of TridonicAtco Optoelectronics, the two start-up companies, Ledon Lighting and Lexedis Lighting, also contributed to this upward trend. In the year under review, LEDON was awarded two major projects – the Vienna Stadium Centre and the BMW Museum in Munich – which will be carried out for the most part during the 2007/08 financial year. The Management Board confirmed a mid-term sales target in the LED sector of EUR 100 million. The company, which has been listed on the Vienna Stock Exchange since 12 May 2006, intends to enable its shareholders to participate in earnings through payment of a dividend. Taking into account non-recurring and/or non-cash effects on earnings, the Management Board and Supervisory Board will recommend that the Annual General Meeting on 26 July 2007 approve the payment of a dividend of EUR 0.50 per share. The ongoing strategic growth initiatives will continue at the Zumtobel Group in 2007/08. In terms of regional expansion, the focus will remain on the Asian and Eastern European regions, along with a number of niche markets in Western Europe and, increasingly, the Indian market. On the technology front, LEDs are set to remain a key growth driver for the group. And with reference to new product applications, the core areas will be the exclusive Zumtobel Lighteriors home-lighting collection, the new "LED Light-Engine" LED application, and magnetic ballasts for Russia. In the current financial year, the Management Board is expecting to see a further increase in revenues and EBIT. Zumtobel Group is targeting revenue growth of at least 5% and thus aiming to once again outperform European construction industry growth by between two and three percentage points. In terms of EBIT margin, the Management Board confirmed a target of 10% for the 2007/08 financial year. write your comments about the article :: © 2007 Construction News :: home page |