Softing AG

euro adhoc: Softing AG
quarterly or semiannual financial statement
Softing AG: Divisional success varies greatly - earnings below expectation despite sales growth

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Based on the figures for the first nine months of the year, the Executive Board of Softing AG believes that the company will not be able to attain a full-year EBIT of approximately E 1.5 million, which was the target it announced at the beginning of the year. Continuing a trend that was announced back at the Annual Shareholders' Meeting in July 2006, the 2006 financial year will be dominated by a highly profitable Industrial Automation division and an Automotive Electronics division that will place a heavy burden on earnings this year. Based on today's knowledge, large orders which the Executive Board until recently expected for 2006 will not affect sales and earnings before 2007. As a result of the burden placed on earnings by the Automotive Electronics division, we expect the operating result for the full year to be only slightly positive.

After the change on the Executive Board at the beginning of the year, the Automotive Electronics division was realigned by Dr. Michael Siedentop, who revised the division's strategy, reorganized the division, hired new personnel in key positions, and initiated steps aimed at achieving sustainable cost reductions. These measures had a significant impact on this year's earnings. At the end of the year, the Executive Board will examine if this will result in balance sheet corrections as well. However, the Executive Board is confident that the impact of the measures listed above will be fully limited to the 2006 financial year. The management of Softing AG believes that it has created a solid foundation for the division's sustainable return to profitability.

The Industrial Automation division continued to experience a significant increase in sales and earnings. The division achieved sales growth of nearly ten percent with an EBIT margin of around 11 percent. Most notable, however, is the excellent positioning of the division's products in the market. The product portfolio will be complemented by additional new products this year. As a result, we expect sales in the next year to increase considerably while margins should at least remain stable.

Despite the expected failure to reach our earnings target, the Executive Board believes that Softing AG is very well positioned for the future. The preliminary business planning expects both sales and earnings to increase significantly in 2007.

The Quarterly Report 3/2006 can be downloaded in pdf format from the Investor Relations section at from November 14, 2006.

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ots Originaltext: Softing AG
Im Internet recherchierbar:

Further inquiry note:
Dr. Wolfgang Trier
Tel.: +49(0)89 45656 0
Technical realisation:
Emilio Kokot
Tel.: +49(0)89 45656 311

Branche: Technology
ISIN:      DE0005178008
WKN:        517800
Index:    CDAX, Prime All Share, Technologie All Share
Börsen:  Frankfurter Wertpapierbörse / regulated dealing/prime
              Börse Berlin-Bremen / free trade
              Hamburger Wertpapierbörse / free trade
              Baden-Württembergische Wertpapierbörse / free trade
              Börse Düsseldorf / free trade
              Bayerische Börse / free trade

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