Corporate | 15 August 2008 07:53
Muehlhan AG / Half Year Results
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PRESS RELEASE
Muehlhan significantly increases sales revenues and earnings in the first
half of 2008
- Double-digit increase in sales to EUR 104.5 million
- Broad growth in all business segments
- Net earnings increased around EUR 4.6 million over 2007 results to EUR
2.0 million
Hamburg, August 15, 2008 – During the first six months of fiscal year 2008,
Muehlhan AG’s (Entry Standard; ISIN DE000A0KD0F7) sales of EUR 104.5
million and net income of EUR 2.0 million were significantly higher than
the prior-year figures (1st half of 2007: sales of EUR 92.1 million and a
net loss of EUR 2.6 million). The 2008 second quarter alone accounted for
sales revenues of EUR 55.2 million. Thus, in the second quarter, Muehlhan
was able to surpass even the positive figures posted at the beginning of
the year.
As expected, a geographic breakdown shows that the EUR 11.4 million in
sales reported by the U.S. operations were slightly below the first-half
2007 figure (EUR 13.4 million). The Asian segment’s combined sales for the
first half of EUR 6.8 million were around 13% higher than the previous year
(1st half of 2007: EUR 6.0 million). We were particularly pleased with the
18% growth trend in Europe. Here, sales increased from EUR 72.9 million to
EUR 86.2 million.
The Ship Newbuilding segment's sales of EUR 35.9 million at the end of June
2008 exceeded the figure reported for the first half of 2007 (EUR 34.1
million) by more than 5%. Germany, in particular - but the rest of Europe
as well - contributed a major part of this growth.
In the Repair business, the Group again benefited from growing trade fleets
– and thus from an expanding repair market – in the first half of 2008.
With sales of EUR 23.1 million (prior year: EUR 20.3 million), the segment
managed to grow by more than 14%.
Muehlhan’s Oil & Gas Offshore segment posted sales of EUR 6.9 million in
the first half of 2008. During the prior-year period, it reported EUR 5.7
million. This represented an increase of 21%.
While the fourth business segment, Industry Services, was primarily focused
on and burdened by a major project - the Golden Gate Bridge - in 2007, the
U.S. subsidiary, Muehlhan Certified Coatings, achieved a good profit margin
on the same level of sales posted last year. The acquisition of Procon
Emirates also has proven to be an important factor in strengthening the
company's position, offering the potential for continued growth throughout
the year. The Industry Services business segment reported total sales of
EUR 38.6 million for the first half (prior year: EUR 32.1 million). Thus,
this business segment grew by more than 20%.
At the end of the first half of 2008, the company continued to expand on
the positive earnings trends of recent quarters. EBITDA (operating income
before depreciation and amortization) for the period from January to June
totaled EUR 8.5 million (prior year: EUR 4.0 million). EBIT (earnings
before interest and taxes) amounted to EUR 4.9 million, compared with EUR
0.9 million last year. The EBT (earnings before taxes) figure shows the
improvement in profitability even more clearly: here, Muehlhan reported
almost EUR 3.8 million, versus EUR 0.1 for the first half of 2007.
Consolidated earnings after minority interests rose by EUR 4.6 million,
from a loss of EUR 2.6 million last year. After an already good start in
the first quarter, Muehlhan therefore stepped up its performance in the
following months. Overall, the Group ended the first half with net income
after minority interests of approximately EUR 2.0 million.
Outlook
Muehlhan expects favorable economic conditions to continue for the rest of
the year in all four business segments. In addition, the money-losing
Norwegian subsidiary was sold in July 2008. This will have a positive
impact on 2008 third-quarter earnings.
The Executive Board continues to stand by its projected sales (EUR 200 to
215 million) and earnings (EBIT of EUR 9 to 12 million; after-tax earnings
of between EUR 4 and 6 million) for the full year. Due to the still pending
legal decision in the lawsuit on the Golden Gate Bridge project, it is
currently not possible to provide a more detailed breakdown of expected
earnings.
For a closer look at business developments and prospects, the Executive
Board invites you to review the company’s 2008 First Half Interim Report,
which was published today.
Table of key figures (in accordance with IFRS):
in € 000 1st Half of 1st Half of
2008 2007
Sales 104,537 92,062
EBITDA* 8,460 4,037
EBIT** 4,917 894
EBT*** 3,782 83
Earnings per share (EUR) 0.10 -0.13
Consolidated earnings after minority 2,019 -2,576
interests
Cash flow 7,843 3,185
Investments 4,414 7,310
Depreciation and amortization 3,543 3,143
in € 000 June 30, 2008 December 31,
2007
Total assets 132,374 128,319
Current assets 63,794 58,695
Fixed assets**** 64,391 65,392
* EBITDA: Earnings before interest, taxes, depreciation and amortization
** EBIT: Operating income
*** EBT: Earnings before income taxes
**** Fixed assets (IFRS): Total long-term assets minus 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, besides scaffolding for
marine and industry customers, 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 employs some 2,400 employees around
the world. In 2007 the company generated revenue of EUR 196 million (IFRS).
For further information visit www.muehlhan.com.
Press contact: Ties Kaiser c/o Muehlhan AG, Phone +49 40 752 71 156,
email: kaiser@muehlhan.com
15.08.2008 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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