Annual Report 2005

34
Profit and Loss Statement
During the past financial year, the loss before
taxes amounted to 8.7 million Euros (previous year 13.9 million Euros) while the loss after
taxes was 9.4 million Euros (previous year 15.1 million Euros).
The group made a loss after tax in the amount of 1.4 million Euros (previous year 7.3 million
Euros) before one-time expenditures. As a result, it has not yet been possible to achieve our
objective - a balanced operating result - in spite of the significant improvement made. The reason
for this lies in the delayed realisation of the increase in the gross profit margin as well as
our failure to reach our trade sales target in the autumn.
One-time expenditures amounted to 7.9 million Euros (previous year also 7.9 million Euros)
which was therefore in line with expectations.
The main items of expenditure include redundancy payments for a total of 93 employees at
2.0 million Euros, wages and salaries for departing employees at 2.5 million Euros, extraordinary
value adjustments to fixed assets and liquid assets at 2.1 million Euros and other expenditure
at 1.3 million Euros.
The one-time expenditures have been caused by the restructuring program and mainly comprise
the staff cutbacks in Bückeburg, the relocation of activities from SEAL Graphics Europe
to the sites at Bückeburg and Sun Prairie, USA as well as organisational changes.
The downward trend in the gross profit margin from 46.5% in 2003 to 43.2% in 2004 caused
the year before by price increases for all the main raw materials was stopped. The turnaround
achieved during the second half of 2005 was not enough to get back up to the level
of 2004.