Pleasing first-quarter earnings performance

7/1/2010, 7:00 AM (Source: GlobeNewswire)
HORNBACH HOLDING AG / Pleasing first-quarter earnings performance processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement.


Hornbach Group posts satisfactory start to 2010/2011 financial year

At € 59.6 million, EBIT matches high previous year's figure - consolidated sales
up 0.8%



Neustadt a. d. Weinstrasse, July 1, 2010. The Hornbach Group can afford to be
satisfied with its start to the new 2010/2011 financial year. Its earnings
performance in the first quarter of 2010/2011 (March 1 to May 31, 2010) latched
seamlessly onto the successful performance in the previous year's period. At
€ 59.6 million, operating earnings (EBIT) at the overall Hornbach Holding AG
Group matched the previous year's figure. The Group's net income for the period
rose 2.0% to € 37.8 million, resulting in earnings per preference share of
€ 3.76 (previous year: € 3.72). An improvement in the gross margin enabled the
Group to make up for subdued garden sales at its DIY stores with garden centers,
which felt the effects of the poor weather in spring 2010. Consolidated sales
showed slight growth of 0.8% to € 826.6 million in the first three months
(previous year: € 819.8m).



The 131 DIY megastores with garden centers operated across Europe by
Hornbach-Baumarkt-AG, the Group's largest operating subgroup, increased their
sales by 0.7% overall to € 779.9 million (previous year: € 774.8m). The sales
performance in the first three months was affected by periods of very cold, wet
weather. This led to a decline in sales in the garden product division. The
other product divisions, by contrast, reported more or less stable or positive
developments. On a like-for-like basis, i.e. excluding sales at stores newly
opened in the past twelve months, and net of currency items, sales slipped
2.0%. Including currency items for the non-euro countries of Romania, Sweden,
Switzerland, and the Czech Republic, like-for-like sales decreased by only 0.8%
across the Group. Driven in particular by the positive development in the gross
margin, the subgroup's operating earnings reached € 49.6 million, thus also
matching the previous year's figure.



The Hornbach Baustoff Union GmbH subgroup provided further positive momentum.
Sales at the unchanged total of 21 builders' merchants outlets improved by 3.6%
to € 46.7 million in the first quarter of 2010/2011 (previous year: € 45.0m).
Earnings showed clearly disproportionate growth.



The Hornbach Group can still point to very robust balance sheet figures. As of
May 31, 2010, its equity ratio amounted to 41.2% (February 28, 2010: 42.4%).
Cash and cash equivalents are reported at € 463.2 million (€ 335.1m). The Group
expects to open three new DIY megastores with garden centers outside Germany by
the end of the 2010/2011 financial year (February 28, 2011). Due to increased
outlays to boost its market position, Hornbach expects its EBIT for the year as
whole to fall slightly short of the level reported for the 2009/2010 financial
year (overall Group: € 151.5m).


Further details can be found in the extensive interim reports of Hornbach
Holding AG and Hornbach-Baumarkt-AG published and available for downloading in
the "Investor Relations" section of the Group's website
atwww.hornbach-group.com.






[HUG#1428517]



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HORNBACH HOLDING AG
Le Quartier Hornbach 19 Neustadt an den Weinstraße Germany

WKN: 608343;ISIN: DE0006083439;
Listed: Prime Standard in Frankfurter Wertpapierbörse,
Regulierter Markt in Frankfurter Wertpapierbörse;


Interim Report Q1 2010/2011 HORNBACH HOLDING AG Group: http://hugin.info/130429/R/1428517/375898.pdf
Interim Report Q1 2010/2011 HORNBACH_Baumarkt-AG Group: http://hugin.info/130429/R/1428517/375899.pdf
Press Release Q1 2010/2011: http://hugin.info/130429/R/1428517/375897.pdf



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