Further valuation adjustments in discontinued operations
Personnel change at IWKA Aktiengesellschaft executive board level
3 August 2006
The further restructuring of the portfolio announced earlier will require a valuation adjustment of over EUR 50 million on June 30, 2006, which will cause a substantial loss in the first half of 2006. Companies that do not meet the targeted return on investment targets were reclassified as discontinued operations effective June 30, 2006 and will be sold.
The aforementioned valuation adjustments will result from the planned sales of ARO-Schweisszangen-Group (Automotive Division), GSN Maschinen-Anlagen-Service GmbH (Automotive), HASSIARedatron GmbH (Packaging) and the Boehringer Group, which is already part of discontinued operations.
On the other hand, comparable operating earnings generated by continuing operations for the first six months of this fiscal year improved significantly as projected. The same applies to cash flow. The interim report to June 30, 2006 will be released on August 8, 2006. Mr. Dieter Schäfer, by mutual agreement with the Supervisory Board, will leave the Executive Board of the company as of August 31, 2006. In addition to his other duties, Wolfgang-Dietrich Hein, CEO, will be head of the Packaging Division. The Supervisory Board's decision was made on August 3, 2006. The Supervisory Board's audit committee reviewed IWKA Aktiengesellschaft's draft interim report to June 30, 2006 on the same day.
Karlsruhe, August 3, 2006
The Executive Board