Business News
CeWe Color Holding AG commences with share buy-back
Thursday 12. June 2008 - CeWe Color intends to acquire up to 438,392 own company shares Long-term strategy and early establishment of digital business payoff
The Board of Management of CeWe Color Holding AG (Prime Standard, ISIN DE 0005403901, security identification number: 000540390) resolved today on the basis of authorisation granted by the General meeting of 28 May 2008 with a 99.96 % vote in favour to acquire up to 438,392 own company shares in the period from 16 June 2008 to 27 November 2009. In accordance with the General Meeting resolution, the purchased shares may also be used for the acquisition of companies, may be sold to third parties, used for employees with the company or called in. The Board of Management also resolved to offer CeWe Color employees the right to subscribe to employee shares.
Positive development in the digital section
Due to the positive development of business in the first quarter of 2008, mainly the result of strong growth in the digital section, the Board of Management expects to see a significant increase in operative earnings before tax and restructuring of 12 % to EUR 31 million, of 33 % to EUR 17 million for earnings before tax (EBT) and of 53 % to EUR 9 million for after-tax earnings (including restructuring costs of EUR 14 million). “The long-term strategy for establishing digital business which we began at an early stage is paying off and the success of the CEWE PHOTO BOOK is exemplary here,” said Dr. Rolf Hollander, CeWe Color Holding AG Board of Management Chairman. The company had been greatly supported in its strategy during the past few years thanks to the large number of long-term investors. This is impressively documented by the resolutions on ratification, with approval of more than 99.6 % of the votes being granted to all the members of the executive bodies at this year’s Annual General Meeting.
Prospects and current share price level favour share buy-back
The General Meeting also approved the dividend proposal of EUR 1.20 brought forward by the Board of Management and the Supervisory Board of CeWe Color Holding AG with a large majority of 99.96 % of the votes. This payout of a total of EUR 8.5 million, made possible by the increasing earning capacity of the company, is clear proof of its good future prospects. Rolf Hollander: “Given the scheduled positive development of business and the current share price level, we believe that the time is right for repurchasing shares. We are confident that this measure is a wise one for the company and that it is also in the interest of our numerous long-term shareholders.