Corporate | 15 November 2007 07:22
Muehlhan AG / Quarter Results/Miscellaneous
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Muehlhan discloses quarterly results for the first nine months of 2007
• Sales for the first nine months increase by 3.2% to EUR 143.4 million
compared to the same period in the previous year
• The upward trend of the second quarter is sustained in the third quarter
• Further progress in the reorganization of the US business: significant
cost reduction and realignment of the divisions
Hamburg, 15 November 2007 – Muehlhan AG (Entry Standard; ISIN DE000A0KD0F7)
has generated worldwide sales of EUR 143.4 million in the first nine months
of the current financial year compared to EUR 138.9 million during the same
period in the previous year.
Europe was once again able to report very satisfactory development with
sales growth of 16.3 percent to a total of EUR 114.8 million. The Asian
region also developed very positively with a sales increase of almost 30.0
percent to EUR 8.7 million. Both regions were therefore able to compensate
entirely for the significant decline in sales in the USA of EUR 13.4
million or respectively 40.0 percent to the current EUR 20.1 million.
The Ship Repair business continues to be one of the strongest sales drivers
among the divisions. Sales of almost EUR 13.5 million were achieved from
the beginning of July through the end of September (third quarter 2006: EUR
11.2 million), which supplemented the favorable half-year sales of EUR 20.3
million.
Industry Services made the greatest contribution to sales of all divisions
this reporting period for the first time, with EUR 50.2 million (first nine
months 2006: EUR 41.3 million). The high level of the second quarter (EUR
16.5 million) was therefore clearly surpassed once again with EUR 18.1
million. The third quarter 2007 is the final quarter, in which
consolidation effects by the bridge refurbishing US company Certified
Coating Company, Concord (CCC) –taken over by 1 October 2006– have been
noticeable to their full extent.
Ship Newbuilding, with a share of sales of EUR 50 million, continues to
remain at a high level, but does not quite reach the previous year’s
especially high level of EUR 55.5 million. The reasons for this include the
almost complete stop of business operations in Norway due to a lack of cost
recovery as well as the tapering off of new construction orders in the USA
last year.
In the Oil & Gas Offshore segment, Muehlhan achieved sales of EUR 9.7
million in the course of the year to the end of the third quarter of 2007
(previous year: EUR 13.9 million). Earnings of over EUR 4.0 million can be
attributed to the last three months alone. Even though large growth rates
have been achieved during the course of the year, this division is unlikely
to be able to achieve the original projections for 2007 due to its delayed
start in the North Sea.
At the earnings level, Muehlhan can confirm the positive turnaround which
was already becoming evident in the first half of the year with an EBIT
(earnings before interest and taxes) of EUR 1.8 million for the first nine
months (share of third quarter 2007: EUR 935 thousand) and an EBT (earnings
before taxes) of EUR 514 thousand (share of third quarter 2007: EUR 431
thousand).
The regional breakdown has been also maintained when it comes to results:
performance improvements are carried primarily by Europe. The USA is
contributing a cumulatively negative EBIT of minus EUR 4.8 million (same
period in previous year: plus EUR 2.8 million), with only minus EUR 0.7
million being attributed to the third quarter due to the reorganization
measures that were introduced. The USA has reported balanced results for
the month of August 2007 for the first time in a year. When annualized, the
measures that were implemented to reduce overhead costs coupled with
production optimization will improve results on a sustained basis by EUR
2.5 million.
Group results for the third quarter were again positive for the first time
in the current year at EUR 838 thousand (third quarter 2006: EUR 975
million) despite burdens from the USA and currency losses of over EUR 1.0
million. Despite a slight pre-tax profit, due to tax optimization Muehlhan
was able to achieve tax revenue. Cumulative net results after minority
interests as of 30 September 2007 thus amount to minus EUR 1.7 million
(results for first-half report 2007: minus EUR 2.6 million).
Outlook
The Muehlhan Group expects this current trend to continue for the rest of
the year. The Executive Board anticipates closing out the year with sales
revenues in the magnitude of EUR 195.0 million (2006: EUR 184.4 million)
and thus within the range of expectations (EUR 185.0 to EUR 205.0 million).
The Executive Board feels that, based on the continued strength of the euro
and the associated currency losses, the targeted earnings margin (EBIT: EUR
4.0 to 7.0 million, EBT: EUR 3.0 to 6.0 million) can be achieved at the
lower end at best.
For a more detailed look at the course of business and the business
outlook, the Executive Board would like to refer you to the company’s
interim report for the third quarter of 2007, published today.
Key figures (in accordance with IFRS):
in kEUR 9 months 2007 9 months 2006 3rd quarter 2007 3rd quarter 2006
Sales revenue 143,405 138,922 51,343 50,321
EBITDA* 6,667 12,270 2,630 4,014
EBIT** 1,829 8,183 935 2,651
EBT*** 514 6,703 431 2,155
Net earnings per share in EUR -0.09 0.20 0.04 0.06
Consolidated earnings after minority interests -1,738 3,043 838 975
Cash flow 5,816 11,628 2,631 3,551
Investment 10,612 3,516 3,302 1,316
Depreciation 4,838 4,087 1,695 1,363
30 September 2007 31 December 2006
Balance sheet total 131,410 122,767
Current assets 72,983 73,555
Fixed assets**** 54,811 46,745
Equity 57,942 59,287
* EBITDA: Earnings from operational activities plus depreciation and
amortization
** EBIT: Earnings from operational activities
*** EBT: Earnings before taxes
**** Fixed assets: Total long-term assets less deferred tax assets
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 over 30 subsidiaries around the world. In 2006 the company
generated revenues of EUR 184 million (IFRS). For further information visit
www.muehlhan.com
Press contact:
Ties Kaiser
Muehlhan AG
Tel: +49-40-75271-156
E-mail: kaiser@muehlhan.com
15.11.2007 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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