Gelsenkirchen, Germany - Polyurethane hose specialist Masterflex AG said its 2008 financial year was dominated by the group's strategic realignment and restructuring. At the end of the year, the group said, it made further value adjustments, following write-downs carried out during the year.
"At the same time," Masterflex added, "our operating business - particularly the core business unit High-Tech Hose Systems - continued to post stable and profitable performance, which allowed us to generate a significant positive free cash flow," said a 20 April statement from the Gelsenkirchen, Germany-based group.
Extensive impairment tests were carried out on projects and goodwill during 2008, to remove all unsuccessful and unprofitable business from the company and to adjust goodwill to current performance, Masterflex said.
These measures were designed to ensure that Masterflex remains sustainable in future and to protect it from possible risks, said a 20 April statement from the group.
In 2008, Masterflex said that, despite the difficult economic environment, consolidated revenue decreased only slightly to Euro 88.3.Euro million from Euro 88.9 million the year before. Write-downs and other non-recurring charges totalling Euro 13.3 million, however, had a considerable impact on the balance sheet.
As a result, Masterflex's consolidated income before taxes and interest (EBIT) from continued business units totalled Euro 7.0 million. With a Euro 7.7 million loss from the discontinuation of the Mobile Office Systems segment and the above non-recurring effects, the group suffered a consolidated net loss after minority interests of Euro 15.7 million.
To improve Masterflex's ability to continue operating and to expand its successful core business, the group has begun to develop a sustainable plan for restructuring its financing in conjunction with banks and advisers. "In 2009, optimisation of the capital structure will remain our top priority," the company stressed.
The Masterflex board "does not expect 2009 to be an easy year," the statement said, adding that the group foresees opportunities and will launch a range of high-value hose innovations for 2009. In March 2009, Masterflex set up a new sales company in Sweden as part of further internationalisation, the company said.