Winkler + Dünnebier AG

euro adhoc: Winkler + Dünnebier AG
Current market situation requires further capacity adjustment W+D prepares for the future (E)

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Neuwied, August 26, 2003: The Managing Board of the special-purpose machinery manufacturer Winkler + Dünnebier Aktiengesellschaft has resolved a further capacity and cost adjustment program in response to the ongoing slump in demand on its core markets. In addition to measures to improve the Company’s structures and processes, an extensive headcount reduction of between 220 and 250 jobs in Neuwied is unavoidable. The Managing Board deeply regrets this decision, which follows on the headcount reduction last year, but sees no alternative if it is to safeguard the Company and remaining jobs. Corresponding adjustments at sites outside Germany are currently being considered. The reason for the ongoing slump in investment in the Paper division is global excess capacity, coupled with a sharp drop in the price of envelopes. In addition, the machinery used in industrialized nations is relatively new, so new markets are not enough to offset the decline. As a result, the Company is not expecting a short-term recovery. The Hygiene division has also been hit by investment cycles at its customers, who are equally reacting cautiously to the economic situation. In addition, the situation is made more difficult by intensive price competition between several players in the highly competitive feminine hygiene segment. In order to reduce market dependency in its two core areas, W+D is pushing the development of new products for the graphics and paper-making industry. The first results will be presented during the DRUPA trade fair in May 2004. The Company expects to feel the first benefits from these new products and other project activities as from the middle of next year, but does not forecast long-term benefits until 2005 onwards. The Managing Board believes that these capacity adjustments, together with a broader product offering, will lay the foundations for a sustained improvement in the Company’s profitability. August 26, 2003

end of announcement            euro adhoc 26.08.2003

Further inquiry note: Heike Fuchs Tel.: +49(0)2631-84979 E-Mail:

Branche: Machine Manufacturing
ISIN:      DE0007790008
WKN:        779000
Index:    CDAX, Midcap Market Index, Prime All Share, Prime Standard, Technologie All Share
Börsen:  Börse Düsseldorf / official dealing
              Frankfurter Wertpapierbörse / official dealing
              Berliner Wertpapierbörse / free trade
              Bayerische Börse / free trade
              Hamburger Wertpapierbörse / free trade
              Baden-Württembergische Wertpapierbörse / free trade

Weitere Meldungen: Winkler + Dünnebier AG

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