Turnover and Earnings Leap in third quarter of 2007

125% EBIT increase compared to Q3/2006

Hamburg, (PresseBox) - .
- Turnover increase by 68% from EUR 40.1 million in previous year period to EUR 67.4 million in third quarter of 2007
- EBIT rise from EUR 4.8 million in previous year quarter to EUR 10.8 million
- Over 30% turnover increase and 66% EBIT increase in quarter year comparison not including the Heycom acquisition
- E-Commerce is driving growth and profit for the coming years

D+S europe AG (ISIN: DE0005336804), a leading solutions provider for comprehensive e-commerce and customer contact management, has achieved the indicated leap in turnover and earnings in the third quarter of 2007. Due to strong organic growth and the initial consolidation of the Heycom Group, the largest acquisition in the company history, turnover rose by about 68% from EUR 40.1 million in the previous year period to 67.4 million in the third quarter of 2007. EBIT rose over-proportionally by 125% from EUR 4.8 million in the previous year to EUR 10.8 million. The EBIT margin reached 16.1% compared to 12.0% in the corresponding quarter a year before, thus in the third quarter clearly exceeding D+S Europe AG’s set target of 15% as future EBIT margin.

Following D+S europe AG’s strategy, according to which acquisitions must have an immediate positive effect on earnings per share, as planned the Heycom takeover led to a significant increase in earnings per share:Compared to 8 cents in the first quarter of 2007 D+S europe AG doubled the value to 16 cents in the third quarter of 2007. Adjusted for effects resulting from the corporate tax reform passed in the summer, which lead to a onetime non-cash effective earnings charge of about 5 cents due to an adjustment of deferred taxes from losses carried forward, earnings per share amounted to 11 cents.

In the third quarter initial consolidation of Heycom contributed to the increase in Group turnover with a share of 56% compared with the third quarter of 2006. 44% of the turnover increase was generated by the existing consolidated companies without Heycom with all three Group segments showing marked organic growth. Thus turnover of consolidated companies without Heycom rose by over 30% from EUR 40.1 million in the third quarter of 2006 to EUR 52.2 million in the third quarter of 2007. In the same quarter EBIT of consolidated companies without Heycom increased by 66% from EUR 4.8 million to EUR 8.0 million.

In the nine-month comparison Group turnover rose by 39% from EUR 114.8 million in the previous year to EUR 159.4 million in 2007. EBIT rose by 65% from EUR 13.3 million the previous year to EUR 21.9 million. Thus the EBIT margin went up from 11.6% in the previous year to 13.8% on average in the first nine months of 2007.

For the entire business year 2007 D+S europe AG confirms the expected turnover increase by well over 40% from EUR 164.8 million in Jahr 2006 to over EUR 236 million. Moreover, the Group plans an over-proportional increase in EBIT by 75% to about EUR 33 million in 2007. Given this development earnings per share are to total 50 to 52 cents compared to 35 cents in 2006 minus the above-mentioned 5 cents due to one-time effects resulting from the corporate tax reform.

For the coming years D+S europe AG assumes further increases in turnover and earnings. For 2008, after first full-year consolidation of the Heycom Group, a turnover increase to over EUR 320 million and an earnings increase by about 50% to EUR 48 to 50 million are planned. In 2009 turnover is expected to rise to over EUR 390 million and EBIT to EUR 60 million. Taking the corporate tax reform into account, which will result in a lower tax burden, the company expects earnings per share of over 80 cents in 2008, after originally, without the tax reform, 70 to 75 cents were forecasted. In 2009 D+S europe AG expects earnings per share to rise to over EUR 1 for the first time.

Dipl.-Ing. Achim Plate, Chairman of D+S europe AG, explains: "With the Heycom takeover which was concluded on July 1, 2007, the field of ecommerce will clearly improve our Group’s growth and profits. As expected we have already clearly benefited from Heycom in the third quarter and distinctly extended the value-added chain within D+S europe AG."

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