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[May 2005]
Sanitec's Results for 2004
Sanitec Group sales for 2004 were 898.9 million, an increase of 3.7 million or 0.4% over 2003. Solid sales increases in other regions compensated for weak market situations in Germany, Holland and Italy.
EBITDA was strongly affected in 2004 by one-time restructuring and integration consulting costs of 44.7 million and the disposal of the Vacuum Sewage Segment (the Evac business). Excluding these items, EBITDA improved to 160.5 million, representing 18.2% of net sales in 2004 compared to 17.3% in 2003.
Total operating expenses including depreciation and amortisation were reduced by 33.5 million or 3.7% driven primarily by Sanitec's integration process and sales, general and administration cost reduction initiatives.
Lennart Sunden, President and CEO, said: "Despite demanding market conditions, Sanitec was able to increase its profitability in 2004, when excluding one-time effects and the divestment of the Evac business. This gives me confidence that Sanitec is a company with high growth potential and I am very much excited about the challenges ahead of us".
Bathroom Ceramics net sales for 2004 were 610 million compared to 605.7 million in 2003, an increase of 0.7%. Currency exchange rate variances negatively impacted the Bathroom Ceramics sales in 2004 to the tune of 200,000. The Group was able to increase average selling prices in all but two regions. The remaining regions finished roughly on a par with the previous year.
ENDS