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[May 2004]
Sanitec Reports on Bathroom Ceramics Performance
In its full year (2003) financial results statement issued on 28 April 2004, Sanitec reported that Bathroom Ceramics net sales for 2003 were €605.7 million, a decrease of 2.3%. Currency exchange rate variances negatively impacted 2003 sales by €16 million. It was noted that in 2002 Sanitec Bathroom Ceramics' sales were increased by a one-time €5.5 million customer bonus accrual reversal in the Keramag unit.
Good sales volumes, particularly in France, the UK, Ireland, Italy, Poland, Ukraine and Scandinavia - as well as increasing average selling prices in Italy, Benelux and Scandinavia - were at the core of the performance. Higher selling prices compensated for a slight overall decline in volumes.
Bathroom Ceramics operating profit was €31.6 million, a drop of €3.4 million or 9.7% from 2002 (positively influenced by the Keramag issue noted above). The performance in this segment was linked largely to Sanitec's ceramic production network restructuring. Additional closures of certain manufacturing facilities and continued outsourcing to strategic partners enabled the group to drive down its production costs.
Bathroom Ceramics EBITDA for 2003 was €96.1 million, down 3.6% on 2002.
Sanitec's other main businesses are Bath & Shower Products and Vacuum Sewage Systems and the group as a whole ended 2003 with net sales of €951.1 million as against €985.4 million in 2002. Although showing a drop of 3.5%, group sales for the year were actually in line with 2002 after adjustments for currency exchange rate effects and special items in the 2002 figures.
ENDS