Annual Report 2005

18
Business Unit “Graphics”
The business unit “Graphics” accounts for
approximately 90% of the Group’s turnover
just as it did last year. However during the past
few years, this unit has been reorganised considerably
through the sale and shutdown of
operating activities. The end of this process
was marked by the closure of the foam board
company in the USA in September 2005. The volume of sales relating to this amounted to
approximately 4.5 million Euros per annum. Because of the extremely low return on capital,
this company will be run as an investment company in the future. Compared to 2002, a total
volume of 16 million Euros per annum was sold, closed down or removed from the consolidated
group.
Activities in the business area “Special Products” have been shown as an independent area
of operations for the first time in 2005. Up to and during 2004, these activities were included
within the business unit “Graphics”. Independent segment reporting has been dispensed
with since they still only account for a small proportion of the turnover.
During the past financial year, the consolidated turnover amounted to 120.7 million Euros
(previous year 124.9 million Euros) which equates to a drop of 3.4%. Excluding the changes
to the foam board operations in the USA and UK described, this amounts to a drop of 2.0%.
Up to the summer of 2005, turnover has developed according to plan. The strong seasonal
increase expected in the autumn did not happen. However, turnover did develop in line with
our expectations during the last two months of the year.
The reasons for the deviations in the autumn included technical problems with the procurement
of goods as well as the changes to foam board operations in the USA.
All in all, the graphics markets in our most important sales regions have continued to stabilise
throughout 2005. This is also indicated by the development of sales during the first quarter
of 2006.