Latest (and not quite the last) on the saga out of Germany

[Curmudgeon]

Märklin übernimmt Gartenbahnhersteller LGB
© AP


(PR-inside.com 26.07.2007 16:50:34)
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Göppingen (AP) Der Modelleisenbahnhersteller Märklin übernimmt den ins Trudeln geratenen Nürnberger Gartenbahnhersteller LGB. Die Gläubigerversammlung der insolventen Ernst Paul Lehmann Patentwerke, die Inhaber der Marke LGB ist, habe am Donnerstag dem Verkauf zugestimmt, teilte Märklin in Göppingen mit. «Mit der Übernahme von LGB erschließen wir eine neue Kundengruppe und ergänzen das Produktprogramm», erklärte Märklin-Chef Axel Dietz.
Nach seinen Angaben konnte Märklin im ersten Halbjahr gegen den Branchentrend seine Betriebsleistung - Umsatz, sonstige Erlöse und Bestandsveränderungen - auf 55,1 Millionen Euro steigern, nach 54,8 Millionen im Vorjahr. Der Auftragsbestand verbesserte sich um 16 Prozent auf 58,6 Millionen Euro. Die Zahlen des ersten Halbjahres bestätigten Märklin auf dem eingeschlagenen Weg der Gesundung, erklärte Dietz. Märklin war im Mai 2006 vom britischen Finanzinvestor Kingsbrigde übernommen worden.







Märklin takes over garden railway producer LGB

© AP


(PR-inside.com 26.07.2007 16:50:34)

Göppingen (AP) Model railway producer Märklin takes over Nürnberg garden railway producer LGB, who ended up in a tailspin. On Thursday the assembly of creditors approved the sale of Nürnberg's Ernst Paul Lehmann Patentwerke, the owners of the LGB trademark, announced Märklin in Göppingen. "With the takeover of LGB we tap a new clientel and complement the product line" declared Märklin CEO Axel Dietz.

According to his statement, Märklin could in the first half of 2007, counter to the industry trend, increase its results - turnover, other income and asset mutations - to 55.1 million Euro, compared to 54.8 the year prior. Orders increased by 16% to 58.6 million Euro. The results of the first six months confirm that Märklin is on the way to recovery, said Dietz. The British investment company Kingsbridge took over Märklin in May of 2006.



Copied with VERBAL permission from the translator.

[Rene Schweitzer]

This is indeed true and from the AP wire. We have received the official press release from Märklin (in German) and will translate it. I called the American office for comment, and a chunk of their staff is at the NMRA National Convention and they had no comment right now.

[vsmith]

Holy Bat-poop Batman!

Well, there it is!

I'm not too surprised by this, the writing has been on the wall (and all over the internet) for awhile now, with all the hoopla over trademarks and tooling lately, we'll have to wait and see exactly what Marklin got in the sale...and what LGBoA still has or doesnt have...it aint over till they start shipping again.

[Rene Schweitzer]

Here is the official Märklin press release translated:

Märklin continues on its stabilization course - takeover of LGB achieved

-- The business volume in the first half of 2007 2% higher than in the
same period of 2006

-- Organisation of the modern production network and cost reductions
concluded.

-- Göppingen reinforced as the centre of development, engineering and
production

-- Acquisition of a broader product and client base

Göppingen, July 26, 2007 - The industry segement is still contracting, but
Märklin continues to stabilize: Counter to the trend model railway producer
Märklin increased its result for the first half year of 2007 (end of June)
to 55.1 million Euro ( same period in 2006: 54.8 million). Orders are also
better than in the previous year, an increase of 16% to 58.6 million Euro
(2006: 50.6 million)

"With that we have further stabilized and expanded our business" seid Axel
Dietz, CEO of Märklin. "The most important measure of that are turnover and
orders. In that category we managed a 2% increase of 101.7 million compared
with the prior year. Which confirms our chosen path to recovery." The
turnover of the company, which reached 43.1 million for the first half, was
approximately the same as the prior year, when extra ordinary factors were
accounted for; however due to production relocations and new terms for the
distribution during the reporting period, the results can only be compared
in a limited fashion.

Substantial steps of "program for the future" successfully concluded.

With that Märklin is, one year after the takeover, right on course. By
midyear Märklin concluded the measures presented in January with which the
company reinforces core components, creates a modern production network and
presents competitive cost structures. The negotiations with the employees
have been amicably concluded. It was agreed to concentrate the production at
headquarters in Göppingen and the subsidiary Györ/Hungary. The employees at
Sonneberg and Nürnberg are helped through the transition by specially
created companies that offer skills upgrading and job search assistance.

Headquarters Göppingen: Center of expertise for development, engineering
and production of high quality models.

One of the core measures, with which Märklin gets a solid footing for the
future, is the consolidation of location Göppingen as a competency centre
for product management, development and engineering of the complete Märklin
line. Märklin's high quality product lines will exclusively be produced at
headquarters in Göppingen. This assures that the traditional strengths of
the employees - high quality and painstaking attention to detail - as one of
the most important criteria for Märklin's success will be secured and
expanded.

Märklin expands product lines and strengthens the highvalue and
sophisticated technical toy segment.

At midyear Märklin expanded its business portfolio : with the acquisition
of Nürnberg garden railway producer LGB, the company establishes a further
main pillar in an interesting growth segment. The creditors of the insolvent
Ernst Paul Lehmann Patentwerk oHG, owner of the LGB trademark and venerable
producer of garden railways, have at today's creditors' meeting approved the
sale of substantial assets to Märklin.

"With this we can continue the tradition of this unique large scale railway
and we are confident that within few months we will bring models and
accessories to market" says Märklin CEO Axel Dietz " With the takeover of
LGB we tap into a new client group and add the one popular size to our
product line which had, so far, been missing. In addition to that the garden
railway business has a different season cycle that runs in the opposite
direction and provides us with a better balance." In Nürnberg, where LGB
after very protracted, unsuccessful negotiations which were drawn out over
many months, is already in the second insolvency, the takeover will result
in approximately 20 highly qualified job positions. The production of the
LGB-models will in future happen within the Märklin production network

[Anonymous]

I called the American office for comment, and a chunk of their staff is at the NMRA National Convention and they had no comment right now.

How many times now has there been no comment but once they said they had stock!? Ok, if they did then maybe I could get the items I am wanting.

If they bloat there prices then I am done with them.

William

[Curmudgeon]

I think she's referring to the Maerklin US Office.

[Rene Schweitzer]

Yes, Curmudgeon is right. I called the Märklin American office for comment.

[Anonymous]

Guess ya'll figured out I was speaking of LGBoA.....mybad......

[EMPIRE II LINE]

 

If they bloat there prices then I am done with them.

William

 

Hey hang on to that old LGB stuff, be worth it's weight in gold, unless they start doing what Lionel has done to some extent.

Byron

[vsmith]

 

If they bloat there prices then I am done with them.

William

 

Hey hang on to that old LGB stuff, be worth it's weight in gold, unless they start doing what Lionel has done to some extent.

Byron

I personally will keep my expectations in check untill I see what they offer for US release and more importantly how long it takes to reach these shores, and even more importantly, how much they charge for them.

We still have no real idea what Marklin got in the sale, or how long it will take to move what they recieved and restart production and begin shipping, it sure wont be this Xmas.

I have my hopes that they'll go toe to toe with Bachmann and Aristo but Marklin has never been a low price leader, so I'm not holding my breath, but this whole debacle has been Fascinating!

[Anonymous]

Byron

All I use of LGB is switches, so if they do go up oh well, and the well is deep!

William

[vsmith]

Piko will be introducing what looks to be LGB-clone track, so that well may not be that deep that we cant climb out again

[Anonymous]

Piko will be introducing what looks to be LGB-clone track, so that well may not be that deep that we cant climb out again

Still waiting for the fat lady to sing, like you said Vic. Really seen no "sign" of price or if it is code 250. Heck might become a master spiker in my life time

[EMPIRE II LINE]

 

A Master what ????

 

[Anonymous]

 

A Master what ????

 

A Master turn out maker (frogs) @ 90 yrs old if the illness will let me get that old?!

Guess ya'll need to call me "Crazy Willy" now....