Linz Textil: profit increase due to special effects
LINZ / VIENNA. The turnover of the listed company decreased by 2.9 percent to 54.9 million euros in the first half of the year.
As a result of the dismantling of the Linz spinning mill, the number of employees fell from 607 to 576 in the first half of the year.
The stock market listed Linz Textil AG has earned considerably more money in the first half of the year, partly because of the closure of the yarn production in Linz, but slightly less implemented. The operating result amounted to 2.1 million euros, after 1.6 million in the same period last year. Turnover fell by 2.9 percent to 54.9 million euros. The full year must only be terminated by one-off effects with black figures.
The decline in sales was "mainly due to the dismantling of spinning production in Linz and the simultaneous relocation of production to the Croatian subsidiary," the company said on Tuesday. Part of the capacity was transferred to the Croatian Klanec plant, where personnel costs are considerably lower. Turnover in the other locations rose in the first half of the year.
Profit before tax increased from 2.1 to 2.76 million euros due to positive one-off effects – for example, fixed assets were sold as part of the closure of the plant.
"The restructuring concept in the field of semi-finished products, initiated in the spring of 2018, which became necessary as a result of the dismantling of the Linz spinning mill, will be completed in the fourth quarter", explains the semi-annual report. Although the resulting costs weigh on profit this year, the measures must bear fruit in the coming year. The finished products, including the products of the Vossen brand, continued to suffer losses in brick-and-mortar retail trade in the first half of the year, but are expected to be adjusted in the second half of the year on a seasonal basis and at the same level as one-off orders ".
Shareholders' equity decreased from 76.2% to 68.5% compared to the end of 2017 (before dividend payment) and total assets decreased by 0.6% to EUR 100.6 million. The number of employees was reduced from 607 to 576 during this period as a result of the closure in Linz.
In the second half of the year the company is confronted with a persistently challenging market environment. "One-off effects at group level are expected to produce a positive result by the end of 2018."
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