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VOGT electronic AG (OJ:VOE) VOGT electronic AG / Misc. manpower / employee / Ad hoc: VOGT electronic Group reacts to the global financial crisis and market development Ad hoc announcement according to §15 WpHG processed and transmitted by Hugin. The issuer is solely responsible for the content of this announcement. ---------------------------------------------------------------------- --------------
Obernzell, November 5th, 2008
As a reaction to the consequences arising out of the global financial crisis and the resulting current market development the VOGT electronic Group has initiated restructuring measures. These structural adjustments become necessary to ensure the company's future.
In addition to the optimization of the operational processes all other resources will be reviewed with the objective to reduce costs. However, part of these measures is also a headcount reduction in Germany on the sites Obernzell/Erlau and Lehesten. In total the VOGT electronic Group plans to cut 250 jobs on these sites.
The VOGT electronic Group sells inductive components, modules and sub-assemblies. The sales share of the automotive business in the VOGT electronic Group is approximately 60%. Particularly the development of this business segment during the last months and weeks requires immediate reactions and measures. The consumer electronic business couldn't also meet the expectations in 2008. The propects for the financial year 2009 don't give any reason to optimism. For the global automotive business the VOGT electronic Group doesn't expect any far-reaching changes of the developments as it can be assessed from today's point of view. Quite the contrary, further sales forecast reductions of the VOGT customers have to be expected. The business of electronic components and here especially the inductive components one is also running very slowly. In general markets in Germany and Europe are predicted to decline in 2009.
The business of the VOGT electronic Group developped dissatisfying most recently during the 3rd quarter of the current financial year. Adjusted sales of the Group decreased by 8.1% to 35.0 mio. EUR (previous year: 38.1 mio. EUR) and were thus below expectations. Reason for this drop down were the declining sales in the automotive and the consumer electronic business.
Due to missing impulses of incoming orders VOGT expects a clear decline of sales during the 4th quarter. Background is the ongoing crisis of the financial markets and its impact on the automotive industry. Due to the decline of sales and extraordinary expenses linked to allowances on receivables and stocks the company expects a clear downturn of profit. The market trends visible in the 4th quarter will continue in 2009 from the VOGT electronic Group's point of view.
The Management Board of VOGT electronic AG regrets the necessity of headcount reduction. However, due to the current development of the markets of the VOGT electronic Gruppe there are no more room or choice of action left to ensure the future of the company.
The Management Board
For any further information please contact: VOGT electronic AG Annette Stiefler VOGT electronic Platz 1 D-94130 Obernzell Tel.: +49 8591 / 937 121 Fax: +49 08591 / 937 103 Mail: ir@vogt-electronic.com
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VOGT electronic AG VOGT electronic Platz 1 Obernzell Germany
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