Corporate | 27 August 2009 08:59
INDUS Holding AG / Half Year Results
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Positive earnings in the first six months thanks to aggressive
counter-measures
Bergisch Gladbach, August 27, 2009 - INDUS Holding AG generated sales
revenues of EUR 365.5 million in the first half of 2009 (previous year: EUR
462.1 million). While the Group was unable to isolate itself from the
adverse impact of the economic crisis, it generated a clearly positive
result, as reflected in earnings before interest and taxes (EBIT) of EUR
20.8 million and an EBIT margin of 5.7%. It should also be noted that the
result includes non-recurrent restructuring expenses in an amount of
approx. EUR 3 million.
The cost of materials fell from EUR 222.8 million to EUR 161.7 million, not
least due to the decline in commodity and energy prices. Personnel expenses
dropped from EUR 120.0 million to EUR 113.4 million in spite of
extraordinary restructuring expenses.
As at mid-year 2009, INDUS reported a moderately higher operating cash flow
of EUR 33.5 million (previous year: EUR 31.5 million) and continued high
liquidity of EUR 108.3 million. In spite of a general increase in borrowing
costs, operating interest income remained stable at EUR 14.0 million
(previous year: EUR 14.1 million). Net debt declined by a moderate EUR 4
million.
Rapid crisis intervention at the beginning of the year helps to stabilise
earnings
At the end of the past fiscal year, INDUS already initiated measures to
maintain the profitability of the portfolio companies. The restructuring
measures primarily affected the automotive industry and mechanical
engineering segments. The companies initially cut back the number of
temporary workers, did not renew expiring contracts and reduced employees'
overtime and leave accounts. A number of subsidiaries applied for
short-time work in order to keep their qualified workforces. At present,
some 30% of the INDUS staff is on short-time work, which will continue
until 2010 in most cases.
In some companies, staff adjustments were nevertheless inevitable. As a
result, the number of the Group's employees declined by 428 to 5,434 as of
June 30, 2009. INDUS expects the order situation to stabilise in the second
half of 2009, when the capacity adjustments will largely be completed. The
resulting positive effects on costs are expected to be felt in the third
and fourth quarter of 2009.
Improved order situation in July indicates turnaround
The figures for the first half of 2009 support the projections of INDUS
Holding AG, according to which sales and earnings will remain clearly below
the prior year level. CEO Helmut Ruwisch has identified a turnaround:
'Should the current recovery stabilise further, INDUS expects business to
improve in the second half of the year. We also believe that the
comprehensive restructuring measures will be fully reflected in our results
from the third quarter 2009 and slow down the decline in Group earnings.'
Based on these assumptions, the Management Board expects full-year sales to
decline by up to 20% and EBIT to come in between EUR 40 and 50 million.
According to Helmut Ruwisch, this is an acceptable result against the
background of the uniquely difficult environment.
Contact:
Regina Wolter
Öffentlichkeitsarbeit & Investor Relations
Tel.: +49(0)2204/4000-70
Fax: +49(0)2204/4000-20
E-Mail: wolter@indus.de
27.08.2009 Financial News transmitted by DGAP
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Language: English
Issuer: INDUS Holding AG
Kölner Straße 32
51429 Bergisch Gladbach
Deutschland
Phone: +49 (0)2204 40 00-0
Fax: +49 (0)2204 40 00-20
E-mail: indus@indus.de
Internet: www.indus.de
ISIN: DE0006200108
WKN: 620010
Listed: Regulierter Markt in Frankfurt (Prime Standard), Düsseldorf;
Freiverkehr in Berlin, München, Hamburg, Stuttgart
End of News DGAP News-Service
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