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Message from the Chairman of the Supervisory Board
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Dear Shareholders,
2006 marked the beginning of the turnaround we announced a year ago. It is true that we had hoped to be closer to break even this year, whereas we are only half
way.
The main reasons for the shortfall come from the drop in embroidery in Europe and the recent fall-off in pearls which was a significant part of our business in our
“Loisirs & Création” chain.
The Sportswear division, however, despite harsh competition from Asia, has stood up well thanks to the quality of our products.
Naturally, we have taken the measures necessary to be back on target for breakeven. There are several aspects to these
measures:
• Restructuring of our logistics activities,
• Launches of innovative products,
• Change of management and restructuring
in the “Loisirs & Création” chain.
Added to this is the fact that we sold off
unused property in Mulhouse under conditions
which will enable us to finance the
construction of a new facility in 2007 and
significantly reduce our costs from 2008 onwards.
Your Board held 6 plenary meetings during the year. The Management/Selection/Remuneration Committee met twice; the
Accounts/Audit Committee met 4 times.
This year your Board saw the retirement of Jean-Paul Amiel who had spent 19 years with the company, but has reached the age limit. We would like to thank him for the outstanding services he has given us, for his loyalty and for the wisdom of his advice throughout the difficult past years.
We also regretted the death of François Simonnet who was a Director, then Member of the Supervisory Board and Censor for many years, and whose wise and uncompromising questions and comments were always most useful to us.
Once again I would like to thank the Executive Board for the tenacity with which they have continued to work to turn around the company in an environment which remains very difficult. I would also like to thank the employees for their constant commitment to turning around DMC.
As for you, Dear Shareholders, I would like to thank you most warmly for your loyalty and express the hope that 2007 and 2008 will finally reward you.
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