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> Half year results 1998
By breaking even in its operations as soon as first half, Thomson multimedia continues in 1998 the dynamic of recovery initiated in 1997
Paris, 16 July 1998 - Thomson multimedia's preliminary consolidated results for the first half of 1998 show strong progress compared to the same period last year. For the second consecutive half-year, Thomson multimedia has posted positive operating income and a strong upturn in net profits.
First Half 98 Results
||98 -vs- 97
||+ 1 458
|Pre-tax net results
||+ 2 326
||+ 2 304
For all markets, activities for the first half of the year were characterized by the repositioning of sales to drive medium and high-end products with higher margins (particularly of 16/9 in Europe), the halt of certain loss-making sales programs, and a strong increase in the sales of components (tubes, optical pick-ups, etc…). As a result, the Group’s turnover, 65% of which is achieved on the American continent, now stands at 16,319 million French Francs. This result is slightly above the Group's forecasts at the beginning of the year.
With a positive operating result of 64 million francs, an improvement of 602 million francs compared to first-half results for 1997 (-538 million francs), the Group is continuing its recovery and in the first half of the year, has achieved break-even in its operations for the fist time in this decade. This shows the active pursuit of its restructuration plans. This result is largely due to the synergies created by a simplified organization of the product lines, efforts made in purchasing, the reduction of non-payroll expenditures that did not affect the customer (the SPRING program), the preliminary effects of a vast project to transform the Group's processes (supply chain, stock reduction, logistical chain, reduction of lead times, information systems, etc.) and the SAFE commercial reactivation program, for which the Group had allocated 1.4 billion francs in the first half of 1997.
Current results stand at -273 million francs, an improvement of 868 million francs compared to the same period last year. This result is due mainly by the rise of the operating income (602 million francs) and a drop in financial costs (-266 million francs), which were reduced after the recapitalizing of the company at the end of the second half of 1997. The consolidated pre-tax net profit stand at -197 million francs after exceptional items were taken into account.
Commenting on these results, Chairman and Chief Executive Officer of Thomson multimedia, Thierry BRETON said : "These results demonstrate the strong motivation of the entire staff and their commitment to the turnaround and continued development of the company. The second half of the year should witness the pursuit of improvements in operating results and net profits, in line with the targets the Group has set. The Group also intends to reinforce its strategic position at the heart of the convergence of the information and entertainment industries, by pursuing the dynamic of alliances and industrial partnerships begun during the first half of 1998."
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