DGAP-News
ROY Ceramics SE: Intended relocation of production facilities affects Q3 financial results - Seite 2
reached 2.3 million Euros in the first nine months 2015.
Relocation of the production from China to USA
The sale of the two Chinese subsidiaries at a purchase price of USD 80.0
million which took place in October 2015 lays the foundation for the
relocation of the production of ROY Ceramics from China to the USA. The
buyer, White Horse Holdings Limited, has to pay the purchase price until 30
June 2016. The bulk of the payment from White Horse is expected already by
31 December 2015.
The new state-of-the-art production site will likely be relocated to
Houston, Texas, because of energy, transportation, raw materials, climate,
labour cost, and tax advantages. In order to sustain the production during
the transition period whilst the new factory in the USA is being built,
arrangements with a reputable ceramics factory in Thailand have been made
to have access to OEM ceramics products manufactured according to ROY's
production and design know-how. Non-ceramics accessories will continue to
be produced by ROY's existing suppliers in Italy and China.
Adjusted full-year outlook
The planned relocation of the production will likely adversely affect ROY's
business in China in the fourth quarter of 2015: As a consequence, ROY
Ceramics had to adjust downwards the full-year outlook for operating
profits given in the half-year report. The Management does not expect
further revenues in the fourth quarter 2015 until such time as the OEM
facility in Thailand is operational. Furthermore, EBIT for Q4 might be
adversely affected by the cost of moving plant and machinery from Beijing
to Thailand and the USA. Thus, a net loss is expected for Q4, which is
mainly driven by operational overhead costs. The ROY Group will proceed
with the next step of its restructuring process when the first tranche of
the funds has been received from White Horse Holdings Limited, which is
expected by the end of December 2015.
About ROY Ceramics SE
ROY Ceramics is one of the 10 leading players in the Chinese sanitary ware
market. The Group develops, designs, produces and markets high-end quality
ceramics sanitary ware bathroom amenities and accessories. Roy Ceramics
leverages on German technology and offers product quality unrivalled
amongst domestic manufacturers in the PRC. The ROY brand is targeted in
particular to luxury hotels, high quality houses, official and commercial
buildings, property developers, retail outlets, architects and design
houses. ROY Ceramics sells its products via a well-selected distribution
network of self-owned flagship showrooms, franchised outlets and
distributors.
For further information, please contact:
ROY Ceramics SE
Tel: +49 (0)69 710455155
Mail: ir@royceramics.de
Or visit: www.royceramics.de
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30.11.2015 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
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Language: English
Company: ROY Ceramics SE
Bockenheimer Landstr. 17/19
60325 Frankfurt/Main
Germany
Phone: +49 (0) 69 710455155
Fax: +49 (0)69 710455450
E-mail: ir@royceramics.de
Internet: www.royceramics.de
ISIN: DE000RYSE888
WKN: RYSE88
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Dusseldorf, Stuttgart; Wien (Dritter
Markt (MTF) / Third Market (MTF))
End of News DGAP News Service
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418937 30.11.2015
The planned relocation of the production will likely adversely affect ROY's
business in China in the fourth quarter of 2015: As a consequence, ROY
Ceramics had to adjust downwards the full-year outlook for operating
profits given in the half-year report. The Management does not expect
further revenues in the fourth quarter 2015 until such time as the OEM
facility in Thailand is operational. Furthermore, EBIT for Q4 might be
adversely affected by the cost of moving plant and machinery from Beijing
to Thailand and the USA. Thus, a net loss is expected for Q4, which is
mainly driven by operational overhead costs. The ROY Group will proceed
with the next step of its restructuring process when the first tranche of
the funds has been received from White Horse Holdings Limited, which is
expected by the end of December 2015.
About ROY Ceramics SE
ROY Ceramics is one of the 10 leading players in the Chinese sanitary ware
market. The Group develops, designs, produces and markets high-end quality
ceramics sanitary ware bathroom amenities and accessories. Roy Ceramics
leverages on German technology and offers product quality unrivalled
amongst domestic manufacturers in the PRC. The ROY brand is targeted in
particular to luxury hotels, high quality houses, official and commercial
buildings, property developers, retail outlets, architects and design
houses. ROY Ceramics sells its products via a well-selected distribution
network of self-owned flagship showrooms, franchised outlets and
distributors.
For further information, please contact:
ROY Ceramics SE
Tel: +49 (0)69 710455155
Mail: ir@royceramics.de
Or visit: www.royceramics.de
---------------------------------------------------------------------------
30.11.2015 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
---------------------------------------------------------------------------
Language: English
Company: ROY Ceramics SE
Bockenheimer Landstr. 17/19
60325 Frankfurt/Main
Germany
Phone: +49 (0) 69 710455155
Fax: +49 (0)69 710455450
E-mail: ir@royceramics.de
Internet: www.royceramics.de
ISIN: DE000RYSE888
WKN: RYSE88
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Dusseldorf, Stuttgart; Wien (Dritter
Markt (MTF) / Third Market (MTF))
End of News DGAP News Service
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418937 30.11.2015
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