Buhrmann NV: Strategic Initiatives Continue to Drive Profitability
Buhrmann NV: Strategic Initiatives Continue to Drive Profitability
AMSTERDAM, The Netherlands, February 9/PRNewswire-FirstCall/ -- Buhrmann (NYSE: BUH Amsterdam: BUHR.AS), one of the world's largest
global suppliers of office products and graphic systems for the business
market, announced its fourth quarter 2004 results today.
Buhrmann's three Office Products Divisions operate primarly under the
name of Corporate Express. Corporate Express is the only contract stationer
with a global proprietary distribution network spanning 16 nations across
North America, Europe and Australia/New Zealand, and distribution
partnerships in other countries. Buhrmann's graphic systems distribution
companies are the largest re-sellers of industry-leading Heidelberg equipment
in six European countries.
A full version of the company's fourth quarter 2004 earnings release can
be found on its corporate website: www.buhrmann.com. The following paragraphs
are a summary extracted from the original press release:
Fourth quarter 2004
- Operating profit (EBITAE) from ongoing operations increased 16.3% at
constant exchange rates and by 10.2% as reported at actual rates
- Positive trend in added value growth continues due to further
implementation of our private brands and preferred suppliers initiatives
- Total organic sales up 4%; organic sales global office products
activities up 3%
- Net profit* per ordinary share (fully diluted) increased to EUR 0.24;
net profit* up to EUR 48 million
Full year 2004
- Net profit* increased to EUR 139 million (2003: EUR 43 million); Net
result EUR 80 million (2003: a loss of EUR 132 million)
- Net profit* per ordinary share (fully diluted) increased to EUR 0.69
(2003: EUR 0.19)
- Dividend proposed of EUR 0.14 per ordinary share (2003: EUR 0.07)
* Net profit on ordinary operations before amortisation of goodwill and
exceptional items
CEO's STATEMENT
Commenting on 2004, Buhrmann President and CEO Frans Koffrie said: "I am
pleased with the improved earnings. Positive trends continued into the fourth
quarter with a further improvement in underlying sales, added value and
operating profit. This reflects the beneficial impact that the implementation
of our strategy is having on our results. In addition, we see a continued
gradual improvement in market circumstances in North America, while business
activity remained relatively weak in most European markets. Corporate Express
Australia has again reported solid growth. All in all we are positive about
prospects for further success in 2005, based on our expectations of a steady
improvement in market conditions in North America and the anticipated
positive effects of measures to enhance the performance of our office
products activities in Europe."
LOOKING AHEAD
Profitable sales growth remains our key priority. We are encouraged by
the successes we achieved in 2004 in delivering value from our strategic
initiatives. In addition we see continued, steady improvement in market
conditions in North America. In Europe the positive effects of measures to
enhance the performance of our office products activities are expected to
bear fruit. Given the current trend in sales Corporate Express Australia is
forecasting further growth in 2005. The Graphic Systems Division is entering
a slow recovery phase evidenced by recent sales growth and an increased order
book.
For 2005, at current exchange rates, we expect cash financial expenses of
around EUR 85 million (cash interest plus dividends on preference shares).
Cash tax payments are estimated to be between EUR 20 million to EUR 25
million. Capital expenditure is expected to be around EUR 70 million for
2005, while the outflow reported under "other operational payments" (current
provisions for restructuring) is foreseen between EUR 10 million to EUR 15
million. In view of normal seasonality we expect available cash flow for the
first quarter of 2005 to be negative, but for the full year we expect a
positive available cash flow.
Full version of the press release on: www.buhrmann.com
Source: Buhrmann NV
Buhrmann Corporate Communications, Ewold de Bruijne, Tel: +31-20-651-10-34, e-mail: ewold.de.bruijne@buhrmann.com or Analysts/investors can contact: Buhrmann Investor Relations, Carl Hoyer, Tel: +31-20-651-10-42, e-mail: carl.hoyer@buhrmann.com
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