Gelsenkirchen, Germany - Masterflex AG has announced that it is taking a Euro 8.1 million impairment charge, a move which follows a re-evaluation of individual projects after new ceo Dr Andreas Bastin Dr Andreas Bastin announced a focus on consistent earnings growth.
As a result, Masterflex said, it is assessing all activities that do not fit with its core high-tech polyurethane hose systems.
One project - an investment in early 2007 in a start-up company with a novel high-tech process for coating surfaces - is now being halted, at a charge of Euro 6.2 million.
Two long-standing development projects Masterflex is taking charges on are its 'LaryVent respiration mouth', which will be completely written off, at an impairment charge of Euro 1.1 million, and a 'hose inner surface coatings' project, with a partial value impairment of Euro 0.8 million. Masterflex said it remains convinced that this latter project will be a success and added that in future will commit its own expertise to the work.
Masterflex stressed that this value impairment process is necessary, among other actions, to enable the company to concentrate fully on expanding its successful core high-tech hose system business.
"In Q1 2008 our core business performed successfully," said the group's 3 July statement, adding that, against this background, the board has reconfirmed its forecast for 2008 of growth in operating earnings (EBIT) of between 6 and 12 percent.