Marklin restructuring process is operating continuously - record profit in 2009
Insolvency of Gebr. Ltd. - EBIT increases to EUR 12.4 million
The insolvent company Gebr. Ltd. has earned in the first fiscal year after commencement of insolvency proceedings (31.03.2009-1.02.2010) with an EBIT of 12.4 million euros a record profit and therefore all projections and expectations exceeded. "We are all proud of this result," said the liquidator of Gebr. GmbH, Michael Pluta, at today's press conference the company at the Nuremberg Toy Fair. "Our thanks are due especially to the employees at both locations and Gyor Göppingen, who made good use of them by their success." Moreover, the liquidity situation in the full year could be kept stable. For the first time in years we have succeeded in securing funding for the company's turnover is normal during both the summer months as well as in the run-up phase for the Christmas season from the cash flow of the company out. "The rest will be ensuring liquidity in 2010 the focus of our work," Pluta said. The annual turnover in fiscal 2009 (1.1.2009-31.12.2009) approximately 111 million euros, he was thus 10 million euros less than The plan created in February 2009. "We have given up around 12 million euro turnover, as we have already granted, but have canceled because of financial constraints do not promote responsible jobs," Pluta said. "Due to the extremely positive response that has found our current product news program, we see a potential increase in revenues for 2010."
At the end of the year 1020 people were employed at Märklin, Göppingen of them in 500 and in Györ, Hungary 520th "We anticipate that we plan with the current staff structure and the number of employees are well positioned, and no changes in the personnel area," said the administrator. For investors process Pluta said that several candidates were still in the race, but that it currently does not would like to make forecasts. An investor must already meet all of his previously stated criteria. This would also entail that express the investor for the preservation of the two sites, Göppingen and Györ. "The investor will have a sustained commitment to explain, he must demonstrate to an appropriate management approach and continue, he must essentially the strategy of insolvency administration. "We want and will not be realized at the expense of employees short sales success," said liquidator Pluta. Potential investors must be able to present a financing volume of around 100 million euros, the price is at least 60 million euros. Remains an asset deal would be sought. "We stand on the moment of sale of the company in any way under pressure. I have always stressed that in principle a sale in October 2009 might be possible, but I have also always stressed that this is not a must, "Pluta said. "The priority for me was always the goal to position Marklin in the market again positive. We have been successful and we are working in all areas for further improvements in 2010 and 2011. "
Restructuring process to continue in 2010
The 2009 restructuring process included all business areas across the company; it was and still is a head-to-toe reorganization and restructuring process. Visible measures that had a quick impact included reducing the number of Managing Directors from three to one, who was installed by the trustee, and reducing the number of divisions and division heads who report directly to this Managing Director from 13 to only 5. Implementing the restructuring concept required major HR adaptation measures in March 2009, in the course of which the number of employees has been reduced from 1,417 to 1,020. The Nuremberg plant has been completely shut down. The product portfolio has not been reduced, and still includes all track widths and the Märklin, Trix and LGB brands.
In 2009, the trustee has concluded a long-term rental contract for a new finished goods warehouse. Moving to this new warehouse will be finished by the middle of this year. The ongoing restructuring process will be strictly continued over the next year in order to implement additional, already defined improvement potentials. The trustee wants to be able to present a potential investor with a restructured and well-positioned company which, based on a stable and well-balanced product and market strategy, will provide good profits that can be used as a basis for the new owner to expand into new markets and develop new products.
Marketing and sales activities to be extended – focus on new countries
Märklin’s key markets are Germany, Switzerland, Austria and Benelux. Germany is the biggest contributor to turnovers with about 70%, followed by Switzerland and Benelux. “In 2009, stabilizing the key markets was what mostly contributed to success”, says Lars Schilling, Director of Marketing and Sales. “We want to achieve new growth by regaining additional distribution points at toy stores and by expanding export market shares. “
The most successful product lines in 2009 have been the limited editions that were launched for the 150 years’ anniversary and the innovations released over the past year. This year, Märklin has introduced 250 new products at the Nuremberg toy fair, including absolute novelties such as the TGV record train and new starter packs, which are the only plug-and-play beginner’s packs for children and adults in the market, using a newly developed control unit and corresponding equipment. These innovations, together with the roll-out of an online community platform for model toy fans, along with the launch of the “Märklin TV” web-based TV channel, will generate even more growth.
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