Corporate | 29 March 2007 15:18
Muehlhan AG / Final Results
Release of a Corporate-announcement, transmitted by DGAP - a company of
EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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PRESS RELEASE
Muehlhan presents 2006 Annual Financial Statements
- Interim results of 28 February confirmed
- Performance improved in strategically important Oil and Gas Offshore
division
- Ship Repair up by 27%
Hamburg, 29 March 2007 – Muehlhan AG (Entry Standard; ISIN DE000A0KD0F7)
has confirmed the key figures it published on 28 February 2007 for the
financial year 2006. The worldwide provider of marine surface protection
had sales of EUR 183.3 million in 2006, matching the strong performance of
the previous year (EUR 183.7 million). Total performance, i. e. sales plus
inventory movements, was increased by EUR 2.5 million to EUR 184.2 million
(2005: EUR 181.7 million), an effective growth of 1.4%, even though 2005
showed an above-average increase in sales by 19% due to a major contract
from the US Navy. The Muehlhan Group, which has 31 subsidiaries worldwide,
achieved an EBITDA in 2006 of EUR 11.1 million (previous year: EUR 20.3
million). Operating income (EBIT) for the same period was EUR 3.3 million
(2005: EUR 12.7 million).
As reported at the end of February, in addition to planned one-time costs
for the stock flotation and bond, these results were affected by unforeseen
project difficulties and the continuing weak dollar. In addition to
personnel changes already effected, the company made organizational changes
to identify project risks at an earlier stage: In future, a team reporting
directly to the Executive Board will carry out additional financial and
technical audits of current projects. This is designed to increase
transparency of projects and to facilitate faster responses to risks.
Despite challenging developments, the Executive Board of Muehlhan AG is
pleased with the financial year 2006: Disproportionate growth in the Oil
and Gas Offshore division increased the organic turnover by over 32% to EUR
17.3 million. EBIT in this division improved by 55% from EUR 1.1 million to
EUR 1.7 million. Increasing customer demand in 2006 for advanced
technologies and solutions justified the strategy of Muehlhan AG to promote
the extension of this division.
In Ship Repair, EBIT improved by 27% from EUR 3.3 million to EUR 4.2
million. Earnings were positively and sustainably influenced by
restructuring. In the Ship Newbuilding division, a decrease in business in
the USA and project management difficulties at a Norwegian shipyard reduced
the EBIT from EUR 9.6 million to EUR 3.1 million. The Group’s fourth
division, Industry Services, increased its EBIT from EUR 2.9 million to EUR
3.0 million.
The financial assets of the Muehlhan Group, which had an average number of
2,318 staff in 2006 (2005: 1,942), amounted to EUR 29.0 million at the end
of the financial year (2005: EUR 6.9 million). This is due mainly to the
inflow of funds from the initial public offering and listing of the shares
of Muehlhan AG in the Entry Standard of the Frankfurt Stock Exchange. This
allows Muehlhan to finance further growth. At balance sheet date, Muehlhan
had increased its equity to EUR 54.0 million, an increase of approx. 41% on
the previous year (EUR 38.3 million). The equity ratio of 45.9% was higher
than in 2005 (45.1%).
The most important results are shown in the following table:
In kEUR Financial year Financial year
2006 2005
Sales 183,279 183,675
Total performance 184,169 181,671
EBITDA 11,066 20,327
EBIT 3,302 12,710
Consolidated net profit after minority 156 6,264
interest
Cash flow 6,953 18,314
Financial assets 28,980 6,876
Fixed assets 42,669 44,149
Equity 53,975 38,325
Outlook for the financial year 2007
In the current financial year, the company is seeking to extend all
divisions. Muehlhan AG believes that strongly-growing markets offer immense
earnings and turnover potential. The difficulties which arose at the end of
2006 in industrial business in the USA (affected sales in 2006: 3.8 million
EUR) and in ship newbuilding in Norway (affected sales in 2006: 2.5 million
EUR) led to certain projects being discontinued due to non-cost-covering
margins and to the Norwegian project being closed down. With an existing
order backlog of over EUR 130.0 million and a successful Middle East market
entry, the company is confident to compensate the affected sales by growth
over all business segments. The Executive Board therefore expects a total
performance in 2007 of EUR 185 million to EUR 205 million.
The reorganization of accounting from the German GAAP (HGB) to
International Financial Reporting Standards (IFRS) planned for 2008 will
now be introduced in May of this financial year. Immediately following this
change in accounting methods, the company will issue first quarter results
and a profit prognosis for the financial year.
The company is today publishing all financial information in its 2006
Management Report.
About Muehlhan:
The Muehlhan Group is a leading worldwide provider of marine surface
protection. Its core business consists of applying and renewing corrosion
protection coatings to steel structures, including steel surfaces of ships,
oil and gas rigs and platforms. The Muehlhan Group is also active in the
Industry Services segment, which includes surface protection for wind
turbines, chemical production plants and fuel storage depots, steel
bridges, cranes and machinery. The company’s patented technology
brand-named µ-jet guarantees especially high quality and efficiency in the
removal of old coatings and rust, particularly in the open sea. Muehlhan
was established in Hamburg in 1881 and today employs some 2,300 people in
31 subsidiaries around the world. In 2006 the company generated revenues of
EUR 183 million. For further information visit www.muehlhan.com
Ties Kaiser
Muehlhan AG
Tel: +49 40 75271-156
E-Mail: Kaiser@muehlhan.com
DGAP 29.03.2007
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Language: English
Issuer: Muehlhan AG
Schlinckstrasse 3
21107 Hamburg Deutschland
Phone: +49 40 75271 0
Fax: +49 40 75271 130
E-mail: investorrelations@muehlhan.com
www: www.muehlhan.com
ISIN: DE000A0KD0F7
WKN: A0KD0F
Indices:
Listed: Freiverkehr in Berlin-Bremen, Hamburg, München, Stuttgart;
Entry Standard in Frankfurt
End of News DGAP News-Service
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