Corporate Express NV, one of the world’s leading suppliers of office products, announces its first quarter 2008 trading update ahead of today’s Annual General Meeting of Shareholders. The first quarter organic sales growth confirms sound progress in realising the strategic initiatives, first announced on 1 October 2007.
In North America organic sales growth of 2% was realised in the first quarter despite the difficult economic circumstances. This follows a return to organic sales growth in the fourth quarter 2007 when 3% growth was reported.
Europe achieved organic sales growth of 3% in the first quarter which follows 5% organic growth in the fourth quarter 2007. While sales were hampered by Nordic region warehouse integration effects, these have been addressed and Europe continues to show healthy underlying organic growth in its different markets.
Consistent with the comments made in Corporate Express’ fourth quarter 2007 statement early February, while the company is fully aware that the economic outlook for 2008 is uncertain, its organic sales growth for the first quarter demonstrates that Corporate Express is in a robust position to outperform the market.
Peter Ventress, CEO of Corporate Express: “We are encouraged by today’s trading update. It indicates the momentum that we have within our company and reflects the strength and potential of our strategic initiatives and the commitment of our employees to achieving our objectives. We are confident our actions, strategic priorities and strong market positions put us in a robust position to outperform the market.”
Corporate Express will publish a further update on the progress and future expectations of its strategic plan with its full first quarter results, scheduled for Wednesday 7 May.
In order to extend the maturity profile of the capital structure, in particular the revolver, the Company has been refinanced with a new credit facility. It consists of a 5-year revolver (EUR 175 million), a 5-year amortising Term A facility (EUR 200 million) and a 6-year Term B facility (EUR 205 million). The leverage ratio starts at 4.00x and gradually decreases to 2.75x. The interest coverage ratio starts at 3.00x and gradually increases to 4.60x.