Hugin Ad hoc announcement according to § 15 WpHG: Interim report: HAWESKO Holding AG: Hawesko: Earnings weakness expected in 3rd quarter

10/20/2006, 2:47 PM (Source: GlobeNewswire)
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- Mail-order advertising reduced because of IT system change
- Nine-month EBIT nevertheless 10 % above previous year
- Little effect expected on full-year earnings

Hamburg, 20 October 2006. The wine merchant and trading group Hawesko
Holding AG (HAW GR, HAWG.DE, DE0006042708) has announced today on the
basis of preliminary numbers for the third quarter that it expects
EBIT to be EUR 0.9 million for the period July to September 2006,
thus falling below the previous year's figure of EUR 2.1 million. The
main reason for the drop in earnings is a reduction in advertising
activities of the mail-order segment effected in the third quarter;
this was necessary in the course of the complete switchover to a new
IT system. In total a 20 % reduction was posted in the mail-order
segment's quarterly sales. Beyond this, one-off costs were incurred
due to the IT switchover. According to preliminary calculations, the
earnings development of the other business segments - wine-shop
retailing and wholesale - will not suffice to compensate the
third-quarter drop in mail-order EBIT. Group EBIT is nevertheless
expected to be EUR 5.8 million, 10 % above the previous year. A
detailed analysis as well as the complete interim report at 30
September 2006 will be published in the upcoming nine-month interim
report on 27 October 2006.

For the Hawesko Management Board there is no great material change in
full-year 2006 targets due to the earnings weakness in this quarter:
The Board expects a sales increase against the previous year (EUR 287
million). Regarding EBIT from existing activities the Board now
assumes that the previous year's figure (EUR 18.9 million) will not
be surpassed. Expenditures for the start-up of new activities - in
particular for the first pilot stores with the new specialist retail
concept multiwein - will place a charge on the EBIT for 2006, as
already announced. From today's standpoint the Management Board
estimates group EBIT on the magnitude of EUR 18 million, whereby a
normal course of business is assumed for the important pre-Christmas
trading period in the fourth quarter. The current month's good
business development at the beginning of this quarter supports this
forecast. Normally the Hawesko Group generates over one-third of its
annual sales and over three-quarters of its annual operating profit
in the fourth quarter.

# # #
Hawesko Holding AG
Postfach 20 15 52
20205 Hamburg

Investor Relations: Thomas Hutchinson, Hawesko Holding AG
Tel. (040) 30 39 21 00
Fax (040) 30 39 21 05

--- End of Ad-hoc Message ---
WKN: 604270; ISIN: DE0006042708; Index: CDAX, Prime All Share, SDAX,
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