Dyckerhoff Plans Further cost cuts

Dyckerhoff Plans Further cost cuts
Published: 31 March 2004

Dyckerhoff AG said Tuesday it plans to cut more costs in 2004 in a bid to improve its operating profit this year.  Dyckerhoff will start its successful restructuring program "Dyckerhoff 21" within the upcoming months in all subsidiaries abroad, announced Wolfgang Bauer, Chairman of the Board of Management since March 1, 2004, at the press conference of the Company in Frankfurt.  "The roll-out of "Dyckerhoff 21" into our international activities builds the base for a further improvement of our operating result in the business year 2004."  All in all Bauer now expects cost and efficiency gains of about EUR 135 million from the expanded program after EUR 95 million originally planned.

In 2003 "Dyckerhoff 21" already generated cost savings of EUR 66 million, which were achieved in the sectors Production / Maintenance (EUR 44 million), Overhead (EUR 16 million) and Purchasing / Logistics (EUR 6 million). Thus the planned target of EUR 50 million was outmatched significantly.  Thanks to the ambitious efficiency program the cement producer managed the turnaround in 2003 and shows a net profit of EUR 30 million before capital gains again (previous year EUR - 130.7 million).

After not having received a dividend for the business year 2002, following the Annual General Meeting on May 12, a dividend of 0.13 EUR for the years 2002 and 2003 each, altogether 0.26 EUR, will be paid out to the shareholders of the preferred shares. The result of the parent company Dyckerhoff AG, which is active solely in Germany, is still in the loss, thus the dividend is paid from the retained earnings.