W.O.M. World of Medicine AG

euro adhoc: W.O.M. World of Medicine AG
Restructuring & Recapitalisations
WORLD OF MEDICINE focuses on its profitable core business, which grew by 11% in 2004, and completes strategic restructuring with revaluation of assets/ Declaration of intent on

---------------------------------------------------------------------   Disclosure announcement transmitted by euro adhoc.   The issuer is responsible for the content of this announcement. ---------------------------------------------------------------------


(Berlin, March 8, 2005) Medical technology device manufacturer WORLD OF MEDICINE today signed a declaration of intent regarding the sale of its industrial laser division. WORLD OF MEDICINE will be focusing on its core business, Minimally Invasive Surgery (MIS®), as previously announced. Over the last 2 ½ years, cost savings were achieved in MIS®, sales and marketing were reorganized, and additional measures aimed at improving margins have been implemented. WORLD OF MEDICINE has concluded a strategic restructuring plan, and positioned MIS® for sustainable profitability. Based on preliminary figures, sales in MIS® grew in 2004 by a substantial 11%, to EUR30.8 million, despite the sharp rise in the euro against the U.S. dollar (currency-adjusted: 22%).  MIS® generated a positive contribution to earnings in 2004, prior to adjustments for special effects (last year negative). In the course of the industrial laser division divestiture, the Management Board today in the evening resolved to significantly increase its risk provisions in the 2004 annual financial statement for W.O.M. WORLD OF MEDICINE AG, and in the consolidated financial statement.  The resulting devaluation of assets held at IB Laser, the industrial laser division, amounts to EUR 2.9 million after tax impact considerations. As an additional risk provision, inventories for medical device production were adjusted. This one-time asset revaluation will not lead to a drain on liquidity.  It will reduce the consolidated net earnings in 2004 for WORLD OF MEDICINE. Despite the one-time special effects, the Management Board expects the equity ratio for the Group to reach at least 64% in the end of 2004. By taking this step, WORLD OF MEDICINE is addressing all identifiable risks in order to facilitate its ability to pay dividends by 2006. For 2005, WORLD OF MEDICINE estimates a level of growth in euro-based sales in the middle single-digits calculated in percentage, and a definitive improvement in earnings.

If the sale of the industrial laser division will be executed according to the declaration of intent earnings from the repayment from debts, and from a future profit participation would provide for future extraordinary income.

The complete Annual Financial Statement will be presented by the Company, as planned, on March 30, 2005.

The Management Board

end of announcement                                euro adhoc 08.03.2005 21:31:34

Further inquiry note: Stefanie Gehrke Tel.: +49 (0)30 39981 566 E-Mail: stefanie.gehrke@womcorp.com

Branche: Pharmaceuticals
ISIN:      DE0006637390
WKN:        663739
Index:    Prime Standard, CDAX, Prime All Share, Technologie All Share
Börsen:  Frankfurter Wertpapierbörse / regulated dealing
              Berliner Wertpapierbörse / free trade
              Hamburger Wertpapierbörse / free trade
              Baden-Württembergische Wertpapierbörse / free trade
              Börse Düsseldorf / free trade
              Niedersächsische Börse zu Hannover / free trade
              Bayerische Börse / free trade
              Bremer Wertpapierbörse (BWB) / free trade

Weitere Meldungen: W.O.M. World of Medicine AG

Das könnte Sie auch interessieren: