CeWe Color Holding AG / Restructure of Company
18.03.2009
Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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CeWe Color concludes restructuring activities
* Final closures in Paris and Teplice/Czech Republic
* No longer any extra costs through completion of process of transformation
* Investments of 250 million euros position CeWe as a digital provider
Oldenburg, 18 March 2009. CeWe Color Holding AG (Prime Standard, ISIN:
DE0005403901) will be completing its restructuring activities sooner than
originally anticipated. Consultations with factory delegates in France
concerning the closure of the plant in Paris have now been concluded. The
lab there will be closed down in May 2009 provided that the inspection
dates required by French law are met. Customers will receive the full range
of services from the remaining plants in Rennes, Montpellier and Freiburg.
The Board of Management expects CeWe activities in France to generate
considerably improved operative earnings as early as in the 2009 business
year thanks to a reduced cost basis.
One Plant in the Czech Republic to be closed down
In addition to the production plant in Paris, CeWe Color will also be
closing down the smaller plant in Teplice in the Czech Republic, which the
company had taken over in a process of market consolidation in 2007.
Business will then be concentrated on the more efficient, far larger plant
in Prague.
Target structure reached
With these final plant closures, CeWe Color is already reaching its target
structure in 2009. Restructuring expenses in the current business year will
not exceed a volume of around 10 million euros, which will nevertheless
have a positive effect on operative earnings as early as in 2009. In the
period from 2005 to 2009 alone, CeWe Color invested a total of more than 50
million euros while the number of photos from films declined, in order to
gradually concentrate the production of digital photos at large, efficient
plants. While a plant produced an average of only 108 million photos a year
in the business year of 2000, this figure now amounts to approximately 200
million photos. Chairman of the Board of Management Dr. Rolf Hollander: 'We
commenced with the task of restructuring the company in the process of
transformation at an early stage and prepared CeWe Color for the world of
digital photography in good time - not only technologically, but also in
terms of plant structure. The restructuring phase has now been concluded.
No longer extra costs
As of the business year of 2010, CeWe Color will be operating an efficient
system of production throughout Europe, so that the company will no longer
be reporting any extra costs relating to restructuring. Restructuring the
company for the transition to digital photography has reduced CeWe Color
profits by more than 10 million euros per year since 2005 alone. Rolf
Hollander: 'We are proud to have mastered the process of transformation
with positive results every year and to have maintained an extremely sound
capital ratio of 42.9%. As of 2010 we will no longer have to bear
restructuring costs.'
Investments of 250 million euros in digital transformation
Since the late 1990s, CeWe Color has invested a total of more than 250
million euros in the process of transformation to become a digital
provider. As early as in 1997 the company was the first photofinisher in
the world to set up a station for taking in digital orders in a retail
store as well as a website where orders could be placed. The company now
operates almost 50 digital printers in its 13 production plants. As the
leading photofinishing company in Europe, CeWe Color is the first choice as
a full-service provider among retailer partners. Exceptional digital print
expertise, unique software solutions and wide distribution through the
Internet as well as services provided to the 50,000 retail stores supplied
are a significant competitive advantage.
Increases through CEWE PHOTO BOOKS and commercial digital prints
CeWe Color is ideally positioned for the digital world. With the most
popular offer worldwide, the CEWE PHOTO BOOK (more than 2.6 million books
in 2008) and with photo gift articles, CeWe Color has successfully
transferred its original line of business, photofinishing, into the digital
era. The majority of CEWE PHOTO BOOKS are produced with digital printing
methods. This newly-acquired digital expertise and the sales know-how of
Diron, a company acquired by CeWe Color in 2008, will also enable CeWe to
benefit from the strongly growing market of commercial digital prints.
Rolf Hollander: 'CeWe Color is emerging stronger from the analogue/digital
transformation. We are now in a position to once again focus the strength
of the entire company on increasing sales and earnings.'
Financial Diary:
April 7, 2009 Financials press conference-Frankfurter Hof, Frankfurt (9.00)
April 7, 2009 Analyst conference-Frankfurter Hof, Frankfurt (11.00)
May 20, 2009 Publication report Q1/2009
May 28, 2009 Annual General Meeting - Park Hotel, Bremen (10.00)
About CeWe Color: Photo service company CeWe Color, with 15
highly-technical production operations and a staff of around 2,900
employees in 24 European countries, is both market and technological
leader. The company supplied around 2.6 billion photos, more than 2.6
million CEWE PHOTO BOOKS and photo gift articles to more than 50,000 retail
partners in 2008. In 2008 turnover amounted to EUR 420.0 million. CeWe
Color is 'first mover' in the launch of new digital technologies, for
example ordering digital photos in the Internet or with the help of order
terminals (DigiFoto Makers) in retail stores. Sales of personalised CEWE
PHOTO BOOKS are developing extremely well. In 1961, CeWe Color was founded
by Senator h.c. Heinz Neumüller. The company went public under the
leadership of Hubert Rothärmel. CeWe Color Holding AG is listed on the
Prime Standard.
Should you have any queries, please contact:
CeWe Color Holding AG, Hella Hahm (-400) or Axel Weber (-552)
Tel.: 0441 / 404 - 234, Fax: 0441 / 404 - 421,
Email: IR@cewecolor.de, Internet: www.cewecolor.de or www.cewe-fotobuch.de
DGAP 18.03.2009
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Language: English
Issuer: CeWe Color Holding AG
Meerweg 30-32
26133 Oldenburg
Deutschland
Phone: +49 (0)441 40 4-1
Fax: +49 (0)441 40 4-42 1
E-mail: IR@cewecolor.de
Internet: www.cewecolor.de
ISIN: DE0005403901
WKN: 540390
Listed: Regulierter Markt in Berlin, Frankfurt (Prime Standard);
Freiverkehr in Hannover, München, Hamburg, Düsseldorf,
Stuttgart
End of News DGAP News-Service
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DGAP-News: CeWe Color Holding AG: CeWe Color concludes restructuring activities
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