Corporate | 4 May 2009 07:49
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WashTec AG / Key word(s): Quarter Results
Business development in first quarter of 2009 affected by economic crisis: – Revenues decline by 15.6% to EUR54.6m (prior year EUR64.7m) due to lower equipment sales – Operating result (EBIT) at EUR-2.5m (prior year EUR3.1m) – New generation of roll-over washing systems launched in the United States Augsburg, May 04, 2009 – In the first quarter, the financial and economic crisis negatively impacted WashTec’s business, particularly in equipment sales. Investment delays among smaller customers and declining equipment revenues in markets such as Spain, where the market for car wash systems has nearly collapsed, resulted in a 29% decline in revenues from equipment sales. Service and chemicals revenues were at prior year level, after making adjustments for special service projects in the previous year and the acquisition of AUWA-Chemie in May 2008. Due to stable wash counts, revenues of the operating subsidiary WesuRent remained stable as well, which shows that the washing behaviour remains unchanged despite the current crisis. Total revenues in the first quarter fell by EUR10.1m to EUR54.6m (prior year EUR64.7m).
Based on the decline in revenues, the operating result fell by EUR5.6m to
EUR-2.5m (prior year EUR3.1m). This figure includes EUR 0.8m write-downs
for
Net finance costs were further reduced from EUR0.8m to EUR0.6m due to lower bank liabilities. Earnings before taxes (EBT) fell in the first quarter to EUR-3.1m (prior year EUR2.2m).
The equity ratio remained stable at 39.5%. Net bank liabilities, including
financial lease liabilities, climbed from EUR46.9 m (as of December 31,
2008)
During the largest American car wash trade fair – the ICA in Las Vegas held in early April – Mark VII (USA) exhibited a new generation of roll-over washing systems, which includes »touch-free« and »friction« systems. The new equipment, which was developed in the United States, offers significantly improved washing results with lower energy and water consumption. The roll-out in Europe of the products presented at the automechanika 2008, like for example the SoftCare2, advances according to plan. Forecast The current car wash figures show that the economic environment so far had no major impact on car washing behaviour, and that the car wash operations business continues to be stable and profitable. The financial and economic crisis, however, continues to cause delays in investments in equipment among certain customer groups such as individual operators as well as in certain markets. Initially, the United States, followed by Spain and Great Britain in Europe, were particularly affected. During 2009 it is expected that investments will also be delayed in other regions, such as Eastern Europe. Given the decline in equipment sales and the lower order backlog compared to prior year, WashTec anticipates that equipment revenues for the entire first half of 2009 will be significantly lower than the same period in 2008. All other business fields are expected to remain relatively stable. Given the continuing uncertainties with respect to the business climate and the short order to delivery cycle, a more detailed outlook for 2009 is still not possible. Because of the anticipated decline in revenues, the company has already initiated various cost-cutting measures. This includes not only short-term measures such as strict cost management, but also mid-term and long-term actions such as sourcing activities in Asia and the commencement of component manufacturing in the Czech Republic. Overview of key performance indicators:
The full interim report may be downloaded at www.washtec.de.
Contact:
WashTec AG
Tel.: +49 (0)821 – 55 84 – 0
End of Corporate News 04.05.2009 Dissemination of a Corporate News, transmitted by DGAP – a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP’s Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de |
| Language: | English | |
| Company: | WashTec AG | |
| Argonstraße 7 | ||
| 86153 Augsburg | ||
| Germany | ||
| Phone: | +49 (0)821 55 84-0 | |
| Fax: | +49 (0)821 55 84-1135 | |
| E-mail: | washtec@washtec.de | |
| Internet: | www.washtec.de | |
| ISIN: | DE0007507501 | |
| WKN: | 750750 | |
| Listed: | Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, München, Stuttgart | |
| End of News | DGAP News-Service |
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| 61259 04.05.2009 |