Ad hoc: CFC Industriebeteiligungen releases interim report on the second quarter 2009 and change to Entry Standard stock listing

• Group sales of EUR 23.3 million 
• Group result of EUR – 35.3 million determined by extensive valuation adjustments in the segment “Fashion” 
• Change decided from regulated market to Entry Standard of Frankfurt Stock Exchange 

 

CFC Industriebeteiligungen GmbH & Co. KGaA (ISIN: DE000A0LBKW6), Dortmund, released the interim report on the second quarter 2009 today. 

The CFC Group generated sales of EUR 23.3 million in the second quarter (prior-year quarter: EUR 22.9 million). However, considering the comparable basis of consolidation, sales dropped 13 % due to the effects of the financial and economic crisis. The result from operations (EBITDA) is affected considerably by special items in the second quarter. Net assets of the segment “Fashion” were written down in the amount of EUR 23.4 million – not affecting liquidity – in the course of the company’s focusing on the segments “Electronics” and “Home & Living”. CFC announced this reorientation in its ad hoc announcement of July 16, 2009. Furthermore, the valuation adjustment of Format’s property, plant and equipment in the segment “Home & Living” resulted in an additional charge on comprehensive income in the amount of EUR 5.0 million, not liquidity-related as well. Thus the EBITDA for the second quarter of EUR – 36.8 million (prior-year quarter: EUR – 1.1 million) is determined by one-off effects in the total amount of EUR 28.4 million. Due to the big loss, equity fell to EUR 9.0 million in the second quarter. As of the balance sheet date, the group has cash and cash equivalents of EUR 9.1 million at its disposal, signifying a EUR 3.0 million increase over the December 31, 2008 level. 

As of the end of the quarter the CFC Group had 1,026 employees.

Today the CFC management also resolved the change from the regulated market (General Standard) to the Entry Standard of the Frankfurt Stock Exchange and submitted a corresponding application to Deutsche Börse AG. The substantial advantage of the segment change is a considerably reduced cost burden due to the company’s stock market listing. The inclusion of the shares in the Entry Standard is expected to be realized within the next months. The Xetra quotation of the share price and the guarantee of liquidity continue to be assured by the designated sponsors. 

 

Commentary 

Marcus Linnepe, CEO of CFC Industriebeteiligungen, summarizes the development in the second quarter 2009: “Particularly our holdings in the segment “Fashion” were clearly affected in the second quarter 2009 by the effects of the economic crisis and the corresponding slump in consumer spending. From the group’s vantage we made the assessment that it was not justifiable to provide for the capital requirements for pre-financing the business from equity capital as substantial funds would have been tied up for a long term. We sold the company delmod on July 24, 2009 and are presently in the process of assessing strategic options for Rosner. Therefore we made the decision to write down the net assets of the segment “Fashion” in the financial statements for the second quarter already as a precaution. We are seizing this impulse for CFC’s reorientation towards the segments “Electronics” and “Home & Living” and adapting our corporate structures accordingly at the same time. Part of this process is the change to the Entry Standard which reduces the burden on work input and costs due to the stock market listing considerably. In addition, the Entry Standard provides for financial reporting according to HGB accounting standards (German Commercial Code), offering far more significant statements for restructuring companies with a long-term orientation than IFRS.” 

The complete interim report on the second quarter 2009 is available at the company website (http://www.cfc.eu.com) under “Investor Relations/Financial Reports”.