Loewe suffered considerable losses in turnover and performance in the first quarter of 2009
Autor: Siobhan Hayes
05/06/2009, 22:13 CET
Loewe televisions are not selling like hot cakes at the moment. As compared with last year, sales have dropped to 72.8 million, Loewe AG (Kronach) announced on Wednesday. The result before interest and taxes (EBIT) of the company has fallen to 0.7 million Euro.
Because of the difficult conditions worldwide, stock has been reduced considerably in retail, it was stated. “For this reason, Loewe made a cautious start to the new business year”, explained Frieder C. Löhrer, chair of the Board of Management, according to the announcement. The first months of the year show that 2009 has to be calculated with a weaker market growth. The company is concentrating on strict cost discipline, but also emphasised that it will continue to invest in the premium brand.
New products, the International Wireless Event (Internationale Funkausstellung or IFA) as well as the Christmas season should curb business in the second half of the year in particular. With a solid capital structure and long-term financing arrangements, Loewe is well prepared for the future.