Ad-hoc-Announcement, 19.09.2008
TA Triumph-Adler AG revises 2008 earnings expectations
Nuremberg, September 19, 2008 – TA Triumph-Adler AG has uncovered an attempt by a group of managers and employees at TA Norddeutschland GmbH to set up a competing company in an illegal manner and using unlawful methods, and to entice away a large number of customers in the process. Criminal and civil law measures have been launched. The criminal authorities have searched apartments, and confiscated material.
The activities mainly relate to one of three locations belonging to this major regional company. As a consequence, its business operations are currently negatively impacted to a major extent. Sales and earnings of this major regional company in 2008 will be considerably lower than budgeted. The company's Management Board anticipates an earnings shortfall within the Group of over €4 million compared to this budget, while further negative effects cannot be excluded.
At the same time, the company notes that the sales targets for the full 2008 financial year can no longer be achieved, despite the fact that a multitude of measures have meanwhile been introduced. Among other things, this is due to a delay in the delivery of a new generation of color machines by the supplier Kyocera Mita, which has a negative impact on activities in both sales channels this year.
In the light of this overall situation, the Management Board intends to push ahead with the cost-reduction measures planned as part of the "Aufbruch 2010!" program. These measures, and individual measures connected with the re-establishment of the location at TA Triumph-Adler Norddeutschland, as well as to create a defense from the competitor company, will require additional extraordinary expenses of prospectively around €2 million. These expenses will yield tangible benefits over the upcoming business years, however.
The Management Board has also resolved to put a major brake on acquisition activities, and to return to the planned rate of dynamic growth only when the situation has been resolved, and all these measures have been implemented.
Given these circumstances, the Management Board of TA Triumph-Adler AG now expects pretax earnings for the 2008 financial year of only around €9 million to €11 million (2007: €12.1 million, previous forecast: up to €20 million). The Management Board will provide information about 2008 sales expectations, and their potential effects on longer-term targets, when the third-quarter figures are published in November.
Contact:
TA Triumph-Adler AG
Suedwestpark 23
D - 90449 Nuremberg
Dr. Joachim Fleing
Phone: +49 / 911 / 68 98 - 499
Fax: +49 / 911 / 68 98 - 200
ir@ta.ag
www.triumph-adler.com
Bearer shares ISIN: DE0007495004,
admitted to official trading (Prime Standard) on the Frankfurt stock exchange and on all German regional exchanges
Important notice:
This press release contains forward-looking statements that are based on assumptions and estimates made by the management of TA Triumph-Adler AG. Even if the management of the company is of the view that these assumptions and estimates are appropriate, future actual developments and future actual events may diverge significantly from these assumptions and estimates due to various factors. These factors may include, by way of example, changes in the macroeconomic situation, exchange rates, interest rates, as well as changes both within the market and in the competitive environment as the result of technological change. TA Triumph-Adler AG provides no guarantee, and accepts no liability, if future developments, and results achieved in the future, do not accord with the assumptions and estimates expressed in this press release.