22. Dec 2011

WashTec AG: Analysis of the North American activities finalized


WashTec AG / Key word(s): Miscellaneous

22.12.2011 / 17:19


Ad Hoc release

- Comprehensive analysis of Northern American activities significantly impacts results

- Cost cutting program initiated - strategic options will be reviewed

- Order intake and backlog in Europe slightly recovering

Augsburg, 22 December 2011 - Management and supervisory board of WashTec AG - the leading supplier of innovative solutions for the carwash worldwide - have finalized their analysis of the North American activities and initiated a comprehensive cost cutting program. The detailed analysis of the North America activities showed operational weaknesses in all areas. Forecasted operating losses will account for up to 5.5 mEUR. Major improvements shall be realized within a cost cutting program. In addition the Northern American activities will be focused and reduced. At the same time potential strategic alliances will be evaluated. Also due to wrong accounting adjustments the situation in North America was not discovered earlier. Comprehensive investigations have been initiated with external experts and are still ongoing. They confirmed individual misconduct in the area of accounting. The wrong accounting entries have been corrected. The company will initiate respective legal actions. Group result 2011 is estimated to be impacted by up to 6 mEUR extraordinary expenses including costs for the restructuring program communicated earlier. Impairment on goodwill and other assets as well as provisions for North America of up to 22 mEUR (at actual FX rates) will also be discussed with the auditors in connection with year-end accounting. WashTec still forecasts an operating group result 2011 (EBIT) before write-offs and extraordinary expenses of 10 to 15 % below 2010 (2010: 20.3 mEUR). The company expects significant revenue growth despite the difficult macroeconomic environment. Order intake and order backlog in Europe have slightly recovered in the ongoing quarter.

Contact:
WashTec AG
Argonstrasse 7
86153 Augsburg

Tel.: +49 (0)821 - 55 84 - 0
Fax: +49 (0)821 - 55 84 - 1135



End of ad hoc announcement


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