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 valuationadjustment of over EUR 50 million on June 30, 2006, which will cause asubstantial loss in the first half of 2006. Companies that do not meet the targetedreturn on investment targets were reclassified as discontinued operations effectiveJune 30, 2006 and will be sold.
The aforementioned valuation adjustments will result from the planned sales of ARO-Schweisszangen-Group (AutomotiveDivision), GSN Maschinen-Anlagen-Service GmbH (Automotive), HASSIARedatronGmbH (Packaging) and the Boehringer Group, which is already part ofdiscontinued operations.
On the other hand, comparable operating earnings generated by continuingoperations for the first six months of this fiscal year improved significantly asprojected. 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 leavethe Executive Board of the company as of August 31, 2006. In addition to hisother 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'sdraft interim report to June 30, 2006 on the same day.
Karlsruhe, August 3, 2006
The Executive Board