Corporate | 11 August 2009 07:30
Bechtle AG / Interim Report/Half Year Results Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer / publisher is solely responsible for the content of this announcement. ---------------------------------------------------------------------- Bechtle AG: earnings improved in second quarter - Revenue approx. 6 per cent lower year-on-year at 322.6 million euros - Earnings before taxes of 6.8 million euros - EBT margin improved versus first quarter - H1 cash flow substantially higher year-on-year at 19.4 million euros Neckarsulm, 11 August 2009 - The Bechtle group's Q2 business results were affected by the continuing weakness of the economy. Consolidated revenue of 322.6 million euros recorded for the period April to June 2009 was 6.3 per cent below the Q2 2008 figure (previous year: 344.5 million euros). Earnings before taxes were 40.6 per cent lower at 6.8 million euros (previous year: 11.5 million euros), though EBT margin improved versus the first quarter. With 20.8 million shares outstanding (previous year: 21.2 million shares), earnings per share came to 0.23 euros versus 0.40 euros one year ago. 'Though the economic situation remains troubled, our earnings improved versus the first quarter. While we are seeing variable results across international markets and the Group's different business areas, there are initial indications of the economy finding solid ground,' said Bechtle AG Executive Board Spokesman Dr. Thomas Olemotz, adding 'financial year 2009 will remain challenging however.' System houses buoyed by public-sector business In Q2 2009 Bechtle AG generated revenue of 216.0 million euros (previous year 220.1 million euros) in the IT system house & managed services segment. Public sector revenue from IT projects rose 21.5 per cent for the quarter, limiting the overall decline to only 1.9 per cent despite falling investment by corporations. While international revenue rose 2.2 per cent to 68.7 million euros for the first half as a result of inclusion of the Austrian system houses, domestic system house revenue declined 1.7 per cent to 354.6 million euros. Revenue from organic business in the IT system house & managed services segment was 3.7 per cent lower versus the previous-year period. EBIT for the IT system house & managed services segment fell 47.5 per cent in Q2 2009 to 3.8 million euros (previous year: 7.2 million euros). This resulted in an EBIT margin of 1.8 per cent (previous year: 3.3 per cent). This decline mainly reflected a year-on-year increase in the average number of employees in combination with lower capacity utilisation. System house earnings again rose slightly quarter-on-quarter, EBIT increasing from 3.0 million euros in Q1 to 3.8 million euros for Q2 2009, and EBIT margin from 1.5 to 1.8 per cent. Sluggish investment and pricing pressure affecting trading business Hardware and software revenues were more sharply impacted by the distressed economy than the service-oriented system house business. E-commerce revenue declined 14.2 per cent in Q2 2009 to 106.6 million euros (previous year: 124.3 million euros). Given the falling prices affecting the industry, Bechtle did very well to keep e-commerce revenues roughly even with last year's level in terms of volume. Factoring out non-organic business, revenue from this segment declined 11.9 per cent. The e-commerce segment posted Q2 EBIT of 2.7 million euros versus 3.7 million euros for the same period last year. EBIT margin came to 2.6 per cent versus 3.0 per cent one year ago, due to increasing margin pressures and lower revenue volume. In Q2 Bechtle successfully maintained earnings before interest and taxes even with the first quarter, leading to a quarter-on-quarter EBIT margin increase from 2.5 to 2.6 per cent. Solid equity ratio and balance sheet The equity ratio rose to 65.5 per cent (31 December 2008: 62.8 per cent). As of 30 June 2009 cash and cash equivalents, including securities available for sale and fixed term deposits, totalled 71.5 million euros, only slightly below the 77.6 million euros recorded at 31 December 2008, despite a 12.4 million euro dividend distribution. Bechtle has unused credit lines available in the amount of 40.7 million euros and thus a comfortable liquidity reserve of 112.1 million euros. Cash flow from operating activities increased 51.0 per cent in the second quarter to 6.0 million euros. On a cumulative basis, cash flow from operating activities for the first half of 2009 more than doubled year-on-year to 19.4 million euros (previous year: 8.2 million euros). This chiefly reflected changes in net assets. Number of employees down slightly As of the 30 June 2009 reporting date the Bechtle Group had 4,395 employees, including 263 trainees. This reflects 49 fewer employees in the second quarter. The cost-cutting measures implemented in response to the economic situation centred on introducing reduced hours. Despite the current economic difficulties, Bechtle AG continues to invest in qualified training of young staff. For example, in the first half of the year, all successful graduates at the company headquarters in Neckarsulm, Germany were offered a job contract. Moreover, about 80 young people will embark on their professional career at Bechtle AG in September. Economic outlook still cloudy Although some indicators point towards potential stabilisation, there remains a great deal of uncertainty as to the further economic development. 'In the second half of the year we will continue pursuing a range of specific cost reduction and revenue enhancing measures. In the current adverse environment, customers more than ever appreciate Bechtle's reliable services and financial strength. We need to boldly capitalise on the opportunities this creates for us,' said Dr. Olemotz.Q2/2009 Q2/2008 +/- H1/2009 H1/2008 +/- Group revenue EUR 000 322,619 344,465 -6.3% 641,489 681,321 -5.8% Domestic EUR 000 213,819 224,746 -4.9% 420,137 440,830 -4.7% Foreign EUR 000 108,800 119,719 -9.1% 221,352 240,491 -8.0% IT-SH & MS EUR 000 215,970 220,147 -1.9% 423,242 427,810 -1.1% IT-E-C EUR 000 106,649 124,318 -14.2% 218,247 253,511 -13.9% EBIT EUR 000 6,541 10,964 -40.3% 12,323 22,582 -45.4% IT-SH & MS EUR 000 3,805 7,249 -47.5% 6,820 13,057 -47.8% IT-E-C EUR 000 2,736 3,715 -26.4% 5,503 9,525 -42.2% EBT EUR 000 6,838 11,510 -40.6% 12,965 23,520 -44.9% EAT EUR 000 4,821 8,438 -42.9% 9,150 17,168 -46.7% EPS EUR 0.23 0.40 -41.6% 0.44 0.81 -45.8% Cash flow from operating activities EUR 000 5,981 3,961 51.0% 19,359 8,247 134.7%30.06.2009 31.12.2008 +/- Cash and cash equivalents* EUR 000 71,487 77,638 -7.9% Equity ratio % 65.5 62.8 Number of employees 4,395 4,405 -0.2%* including securities and fixed time deposits *** About Bechtle With more than 50 IT system houses in Germany, Austria, and Switzerland and distribution companies in eleven countries, Bechtle AG is one of Europe's leading IT e-commerce providers. Founded in 1983, the company is headquartered in Neckarsulm and currently has around 4,400 employees. Bechtle is a single, vendor-independent source for the full range of IT infrastructure and operation solutions to its 56,000+ predominantly mid-sized customers from the industrial, service and public sectors. Bechtle has been a publicly-quoted company since 2000 and has been listed in the TecDAX technology index since 2004. For 2008 the company reported revenue of 1.43 billion euros. Contact: Bechtle AG Investor Relations Thomas Fritsche Telefon: +49 7132/981-4121 Martin Link Telefon: +49 7132/981-4149 Telefax: +49 7132/981-4116 ir@bechtle.com 11.08.2009 Financial News transmitted by DGAP ---------------------------------------------------------------------- Language: English Issuer: Bechtle AG Bechtle Platz 1 74172 Neckarsulm Deutschland Phone: +49 (0)71 32/ 9 81-0 Fax: +49 (0)7132/ 9 81 - 8000 E-mail: ir@bechtle.com Internet: www.bechtle.com ISIN: DE0005158703 WKN: 515870 Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hannover, München, Hamburg, Stuttgart End of News DGAP News-Service ---------------------------------------------------------------------------