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Aalberts Industries N.V. - Strategic expansion of Aalberts Industries Flow Control in North America - Conference Call - Final.

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Original Source: FD (FAIR DISCLOSURE) WIRE

OPERATOR: Good morning, good afternoon. Thank you for standing by. [OPERATOR INSTRUCTIONS]. Now I'll turn the meeting over to Mr. Eijgendaal and Mr. Aalberts. Please go ahead.

JAN AALBERTS, PRESIDENT AND CEO, AALBERTS INDUSTRIES NV: Good morning ladies and gentlemen. I'm glad you're in. I don't think we have to explain a lot to you because I think you all have the press release where I think we have tried to clear up or at least explain to you quite well about the acquisition.

We are very glad that we have done the acquisition. It extends our portfolio next to the metal products we have already for many years. It's not that this is the first acquisition in plastic products because we have done plastic products already for some years, especially in Germany and in France, in our Company called Simplex and Comap. We did, as you have seen, an acquisition at the beginning of this year, at least signed, finally finalized the acquisition in Poland, the special plastic fittings.

This acquisition of LASCO is giving us a good opportunity to grow further in America, because next to our Elkhart activity this is going to increase our portfolio in America because of the range of products. What I must say that, of course, LASCO is also in businesses which are not activities which Elkhart has, special in swimming pool and spa activities, as well as in golf courses, where LASCO is the famous supplier in those parts.

The -- as you have seen, don't expect that we know that LASCO is going to increase our profit per share in 2007, even by this small issue of 750,000 shares. The 750,000 shares are at least giving us still a very strong balance sheet after the acquisition. And we control the balance sheet of course forwards, doing acquisitions without -- when they are not to large, do acquisitions without issuing new shares.

We have also given you some indications about 2006 which was a necessary thing to do. I hope you are understanding and reasonably happy with this indication of 2006.

I think probably this first introduction is enough to tell you about and I think it is probably more of your interest to try to answer questions in special areas where you like to have more information.

So I'd rather like to start the questioning from your side and we will try to answer them as good as we can. So, operator, will you give them an opportunity to ask questions, then we will answer.

OPERATOR: First question comes from the line of [Aaron Beckenberg]. Please go ahead, sir.

AARON BECKENBERG, ANALYST: [inaudible] good morning. I think I have to do it English. Could you shed some light regarding the revenue in 2006, and also regarding the EBIT margin of the company acquired?

JAN AALBERTS: The company acquired is of an EBIT margin which is just a bit below our own consolidated one. At least at this moment, but we expect some improvements in the coming years, especially by the synergy between Aalberts Industries Group as well as the cooperation between Elkhart, Yorkshire and Elkhart and LASCO.

Revenues of the Group in 2006, we haven't mentioned it. I think the first six months did give an indication of growth which will be around 1.4b.

AARON BECKENBERG: Okay. Thank you.

OPERATOR: The next question comes from [Carl Lears]. Please go ahead sir.

CARL LEARS, ANALYST, EQUINOX NEWS, THOMSON FINANCIAL: Yes, hello. Carl Lears at [Equinox News, Thomson Financial]. I was wondering whether you have any takeover price for us, for LASCO Fittings....

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