Corporate | 12 November 2007 09:27
Muehlhan AG / Contract/Miscellaneous
Release of a Corporate News, transmitted by DGAP - a company of EquityStory
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Muehlhan awarded major contract for bridge project in California:
• Muehlhan providing blasting and coating services for construction of New
Oakland Bay Bridge
• The contract, worth US$ 19.5 million, serves as excellent foundation for
the future development of Muehlhan’s subsidiary Certified Coatings Company
(CCC)
• Reorganization of US activities widely advanced
Hamburg, Germany, 12 November 2007 –Certified Coatings Company (CCC), the
U.S. subsidiary of Muehlhan AG (Entry Standard; ISIN DE000A0KD0F7), has
signed a contract worth US$ 19.5 million. Starting in early 2009, the
company will provide surface protection services for the new construction
of the 'New Oakland Bay Bridge'. This project, in contrast to the
reconstructive work on the Golden Gate Bridge, involves applying the
initial surface coating to a newly-built, 660-meter-long portion of the new
bridge.
The entire project, valued at over US$ 1 billion, is part of the
Californian 'Seismic Safety Projects', an initiative with funds of US$ 9
billion to protect the San Francisco Bay Area bridges from earthquakes.
The self-supporting suspension bridge Muehlhan will help build is the
largest public commission in California’s history. 'Winning this contract
proves that the acquisition of CCC, despite the difficulties it caused in
the first half of the year, was the right decision for our US strategy,'
explains Muehlhan Executive Board Chairman Dr. Andreas Krüger. 'Our work
on the New Oakland Bay Bridge will give the company an ideal utilization
base until 2013.' In contrast to the reconstruction project, the
clearly-defined services necessary for this new construction guarantee the
profitability of the commission. The problem of shortcomings contingent on
the construction design and subsequently required additional services not
being noticed until during the execution of the project is a non-issue.
In addition, the tragic collapse of a bridge in Minneapolis, Minnesota,
which sparked widespread discussion about bridge safety in the US, puts CCC
in a good position to participate in further projects and thus to utilize
the capacities additionally in the future.
The development of US business as a whole will also show a more pleasing
result towards the end of the year than at the six-month mark. Furthermore,
the Muehlhan Group’s fixed costs in the US will be massively reduced due to
restructuring measures and capacity adjustments implemented during the
summer. For 2008, these reductions will amount to an overall savings
potential of about EUR 2.5 million. An intensified business offensive
should also, at the same time, put the entire business back on course.
Muehlhan does not expect additional US-based losses in Q4 2007. An
exception may be the exchange rate risk due to the repercussions of a
continuously weak US dollar. The weak currency has already cost the Group’s
performance by EUR 1.0 million so far.
Legal proceedings in connection to the 'Golden Gate Bridge' case and
Muehlhan’s claim to an entitlement of US$ 3.8 million continue to progress.
The outcome of the trial before of a Californian court is currently
undetermined, nevertheless, due to its substantive legal position the
company is confident to enforce the asserted claims
About Muehlhan:
The Muehlhan Group is a leading world provider of marine surface
protection. Its core business consists of applying and renewing corrosion
protection coatings to steel structures. They include steel surfaces of
ships and of 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 184 million (IFRS). For more information visit
www.muehlhan.com
For more information on the New Oakland Bay Bridge visit:
www.baybridgeinfo.org
Press Contact:
Ties Kaiser
Muehlhan AG
Phone: +49 40 75271-156
Email: kaiser@muehlhan.com
12.11.2007 Financial News transmitted by DGAP
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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
Internet: www.muehlhan.com
ISIN: DE000A0KD0F7
WKN: A0KD0F
Listed: Freiverkehr in Berlin, Hamburg, München, Stuttgart; Entry
Standard in Frankfurt
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