aap Implantate AG: Publication of first-half 2003 figures

In the second quarter of 2003, the moderate business trend at aap Implantate AG, a specialist in artificial and biological implants for the muscular-skeletal organ system, continued. It was due in part to the strength of the euro and the consequences of the SARS epidemic. Consolidated sales revenues at EUR 6.1 million in the first half of 2003 were around 15% down on the previous year.

Before special factors (acquisition-related depreciation and stock options), the company grossed EUR 493,000 in earnings before interest, taxes, depreciation and amortization in the first half of 2003 (previous year: EUR 1.954 million). The operating result adjusted in this way totaled minus EUR 233,000, or less than the previous year’s EUR 1.462 million. DVFA/SG consolidated result before special factors was minus EUR 562,000 in the reporting period (previous year: EUR 306,000) and DVFA/SG earnings per share were minus EUR 0.12 (previous year: minus EUR 0.06).

Taking the above-mentioned special factors into account, the figures were as follows: EBITDA was EUR 493,000 (previous year: EUR 1.614 million), and operating result minus EUR 964,000 (previous year: EUR 392,000). The DVFA/SG consolidated result was minus EUR 1.067 million (previous year: minus EUR 406,000), DVFA/SG earnings per share were minus EUR 0.22 (previous year: minus EUR 0.09).

We will probably not be able to achieve our objective of double-digit profitable sales growth for the current financial year. It will be difficult to offset the losses of the first half financial year fully by means of a more positive business trend in the third and fourth quarter. aap nonetheless anticipates in the second half of 2003 a recovery of business in Asia and further sales stimuli arising from reconstruction of our sales network in the United States. The new AEQUOS® knee endoprosthesis, the Variofit® hip prosthesis system and the two bone replacement substances Cerabone® and Ostim® are scheduled to be launched successfully in the market before the year is over.