2009
The banking and finance system is working again and there are practically no liquidity problems.
But the prospect of further global economic development is rather doubtful. At the moment, we cannot
foresee the consequences of the phasing out of the (government's) bail out measures. I personally expect
an economically difficult 2010. Asia and the Middle East will bounce back relatively well, whereas North
America and Europe will only recover slowly.
Progress in the financial year 2008 was stable for Franke through to September until the credit crisis
made itself felt in the real economy from October 2008 onwards, depressing sales and earnings figures below
the previous year’s level by the end of the year. Profitability was negatively impacted by currency effects
and value adjustments of assets. The main problem was the slump in demand at Franke Kitchen Systems.
We are responding by making adjustments to the cost structure. Franke Foodservice Systems, Franke
Washroom Systems and Franke Coffee Systems have all achieved results exceeding those of last year.