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[August 2002]
Sanitec Half-Year Results
Net sales at Sanitec for the six month period ending 30 June 2002 were on last year's level. While the German market continued to be slow, other regions such as Eastern Europe and Scandinavia (including Finland) grew. Despite the difficult situation in Germany, Bathroom Ceramics managed to gain market share, while increasing average selling price. Mainly the depressed German market offset the effect of increased cross-selling activities in Bath and Shower Products.Sanitec reported that the internal integration and efficiency programme was continuing according to plan. The strategic purchasing initiative - started at the beginning of the year - was progressing well and the respective savings are expected to start accruing in the second half of the year.
All business units have also strengthened measures to cut SGA costs. Savings from restructuring of production plant network and outsourcing activities are expected to give concrete results in subsequent years.
Sanitec's net sales in the second quarter - at 257.1 million euro - were on a level with last year and 2.2% higher than the first quarter 2002. Q2 sales to Central and Eastern Europe were up 3.3% on the previous year and 13% up on the previous quarter.
The Q2 EBITDA of 39.2 million euro (15.2% of net sales) was at the level of the previous year and was 4.8 million euro or 13.7% higher than that achieved in Q1 2002, despite increased corporate costs and consulting expenses related to the ongoing Group development initiatives.
ENDS