CeWe Color: 2nd quarter on track

According to a press release, the decline is mainly due to unfavorable currency effects related to the company‘s photo retailing activities in East Europe. CeWe Color’s core business with photofinishing and imaging services recorded sales of Euro 69.4 million (US-$ 99.1 million), only a slight decrease of 0.8 percent against the second quarter 2008, excluding currency effects. The company’s result after taxes increased by 9.2 percent to Euro 1.5 million (US-$ 2.14 million), the cash-flow improved by more than 20 percent due to reduced investments.

Sales of the CeWe Photo Book increased again significantly: CeWe Color produced 1.3 million pieces during the second quarter, a plus of 50 percent, while the European photo book market increased only 35 percent during the same period.

Dr. Rolf Hollander, CEO of CeWe Color Holding AG, confirmed that the phase of restructuring, which has reduced annual profits by an average of ten million euros a year over the past five years, had been concluded, resulting in positive effects on the company’s cost situation. ”The end of transformation-related restructuring and the end of a period of extremely high initial investments in digital technology will greatly alleviate our free cash flow. The foundation for more growth has been laid with our CeWe Photo Books, innovative gift articles and digital print services for commercial customers. Our credit facilities, which have just been raised by 29% to more than 90 million euros, secure the financing of this growth.”

For the full year, the management upholds the forecast of sales in the range of Euro 420 to 425 million (US-$ 600 to 607 million) with earnings before taxes of Euro 10 million (US-$ 14.3 million) to Euro 15 million (US-$ 21.4 million).