(Ad-hoc) S&P downgrades Dürr rating by one notch to "B"
08/11/2005 - Dürr AG - WKN 556520 / ISIN DE0005565204
Standard & Poor's (S&P) has lowered Dürr AG's long-term corporate credit rating from "B+" to "B" and placed it on credit watch with negative implications. The rating agency notified the company of this action today around 5 PM.
The reason cited for the decision of the rating agency is the weaker earnings outlook. Today, the company has announced that it will not be able to achieve its original profit target of more than Euro 18.6 million due to restructuring charges and sales revenues and earnings contributions of the Paint and Assembly Systems division below expectations. S&P also refers to the currently difficult environment in the automotive industry.
At the same time S&P has lowered the subordinated debt rating for Dürr's corporate bond placed in July 2004 for Euro 200 million from "B-" to "CCC+" and placed it on credit watch with negative implications.
Dürr budgeted total expenses of EUR 40 to 50 million for the implementation of the restructuring program FOCUS. In return, the company expects annual cost savings to the same extent. In the context of FOCUS, Dürr aims to significantly improve profitability through a reorganization of the business model towards the more profitable modernization and services business areas.
Dürr AG
The executive board
End of disclosure
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