• Net profit for the year more than doubled, from EUR 49.5 million to EUR 103.6 million
  • Further improvement in profitability: adjusted EBIT margin reaches 9.1%
  • Upward trend continues: revenues up 5.6% to EUR 1,234 million
  • Q4 supports increase in revenues and earnings for full financial year
  • Recommended dividend: EUR 0.50 per share
  • Management Board confirms 2007/08 goals: revenue growth > 5%, 2-digit EBIT margin

Dornbirn, Austria – In the 2006/07 financial year, the Zumtobel Group of Austria more than doubled its net profits from EUR 49.5 million in the previous year (PY) to EUR 103.6 million. Adjusted for exceptional items and non-recurring expenses, EBIT rose 13.3% to EUR 112.3 million, enabling the Group to attain the targeted improvement in EBIT margin, which reached 9.1% (PY adjusted EBIT margin: 8.5%).

Along with the increased operating efficiency, the Group’s improved performance was largely driven by further revenue growth. Group revenues moved ahead 5.6% from EUR 1,168.0 million in the previous year (adjusted for the sale of the airfield lighting business) to EUR 1,234.0 million in the year under review. As in the previous year, both of the Group’s divisions contributed to growth. Revenues increased 3.2% in the luminaire business, while TridonicAtco posted two-digit growth as sales moved ahead 11.6%.

Based on the substantial upturn in earnings and the capital increase carried out in conjunction with initial public offering in May 2006, the key financial indicators showed a further improvement. Thus, by the balance-sheet date, equity had increased by EUR 253.8 million to EUR 441.6 million and as a result, the equity ratio rose from 17.3% to 38.6%.

Even compared to what had been a strong fourth quarter in the previous year (EUR 303.7 million), revenues in the fourth quarter (February to April) were up 3% at EUR 312.7 million. The adjusted EBIT margin rose 80 basic points to stand at 8.1% (PY Q4: 7.3%). The fact that this was lower than the full-year adjusted EBIT margin of 9.1% was due to the seasonal nature of the Group’s project business.

The Management Board and Supervisory Board will recommend that the Annual General Meeting on 26 July 2007 approve the payment of a dividend of EUR 0.50 per share.

In the current financial year 2007/08, the Management Board is expecting to see a further increase in revenues and EBIT. Against the backdrop of a healthy economy, the Zumtobel Group is targeting revenue growth of at least 5% and thus aiming to once again outperform European construction industry growth by between two and three percentage points. In terms of EBIT margin, the Management Board confirmed a target of 10% for the 2007/08 financial year.

Note to the editors
The comparable prior year figures were adjusted to reflect the application of IFRS 5 and IAS 19.

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