Sale of EX-CELL-O Charges against 2005 consolidated year-end result
On December 29, 2005, the IWKA Group sold the EX-CELL-O Group of companies, consisting primarily of Ex-Cell-O GmbH, Eislingen, Germany, Ex-Cell- O Machine Tools, Inc., USA and Ex-Cell-O Machines S.A.S., France, to MAXCOR Inc., New York, effective December 31, 2005/January 1, 2006.
December 29, 2005
The deal is subject to approval by the relevant antitrust authorities.
A book loss of about EUR 55 million will be charged against the IWKA Group's earnings from discontinued operations in 2005 as a result of this divestiture. The EX-CELL-O Group's operating losses of about EUR 40 million will be in addition to the aforementioned charge.
In addition, one-time expenses resulting from the Continuing Operations of around EUR 40 million will be charged against the IWKA Group's consolidated EBIT for 2005. These relate to structural improvements to the Automotive Technology, Packaging Technology and Robot Technology Divisions. The one-time expenses will make the otherwise positive IWKA Group consolidated EBIT from the Continuing Operations negative.
The Executive Board is planning significant growth in cash flow and earnings as early as 2006 because of the sale of the non-core companies and the previously introduced optimizations in the Continuing Operations.
Karlsruhe, December 29, 2005
The Executive Board