Corporate | 15 November 2011 08:26
Muehlhan AG / Key word(s): Quarter Results/Interim Report
15.11.2011 / 08:26
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PRESS RELEASE
Muehlhan publishes interim report for the first nine months of 2011
* Operationally successful third quarter of 2011 yields net income of EUR
0.9 million
* Sales revenues increase thanks to steel construction, bridge and offshore
businesses
* Stricter bond covenants again the subject of negotiations
Hamburg, 15 November 2011 - In the third quarter of 2011, Muehlhan AG
(Entry Standard; ISIN DE000A0KD0F7) reported sales of EUR 45.7 million and
profit from operations of (EBIT) of EUR 1.9 million, thereby significantly
exceeding the prior-year figures (sales of EUR 40.6 million and EBIT of EUR
0.5 million). For the year to date, it has generated sales of EUR 126.4
million (previous year: EUR 125.8 million) and EBIT of EUR 4.3 million
(previous year's EBIT was also EUR 4.3 million). A lower financial result
and higher income taxes reduced the consolidated profit attributable to
equity holders for the first nine months to EUR 1.4 million, EUR 0.6
million lower than in the prior-year period. Despite the positive third
quarter, Muehlhan failed during the nine-month period to satisfy the
stricter bond covenants in effect since mid-2011. The Company is currently
in negotiations with the bond creditor regarding this matter and expects
these discussions to yield positive results.
The lion's share of sales revenues (EUR 98.7 million) was again generated
by the European business. For the first time since the onset of the
financial and economic crisis, the Group managed to expand business
volumes, posting an increase of more than 5% (January to September 2010:
EUR 93.7 million). The increase in the steel construction business,
continuing high demand in the scaffolding segment and higher sales revenues
in the Offshore sector supported this trend.
The North American businesses, which started showing signs of stabilizing
back at the beginning of the year, continued this positive trend through
the end of September 2011 with good sales and earnings figures. Sales
improved from EUR 13.9 million in the prior year to EUR 15.2 million. This
positive trend was mainly attributable to the new bridge construction and
the ship repair business fields.
Sales dropped considerably in the Asian region, including the Middle East,
from EUR 18.0 million the previous year to just EUR 11.8 million this year.
It is nevertheless worth noting that the third quarter of 2011 alone
accounted for almost half of the sales revenues for the first nine months
of the year, thereby demonstrating a clear upward trend. In particular,
growth resumed in the repair business and this has begun to produce
positive results. Thanks in particular to increasing capacity utilization
at a new shipyard customer in Qatar, this location is approaching the
break-even point.
In the Ship Newbuilding business, sales declined again during the fiscal
year, to EUR 28.9 million, compared to EUR 43.9 million the previous year.
This was seen as further evidence that the persistent trend toward a
permanent shift of essential parts of this business from Europe to Asia is
continuing. The Ship Repair sector improved slightly and for the first time
in a long time avoided further decreases in sales. Overall, sales revenues
increased to EUR 23.9 million (previous year: EUR 23.1 million).
The Energy sector generated total sales of EUR 26.8 million through the end
of the third quarter of 2011 (prior year: EUR 24.6 million). The sharp
decline in the refinery business in Qatar, which was caused by project
delays, was offset by an equally sharp increase in the Oil & Gas Offshore
business in Europe. For the first time, the USA made an appreciable
contribution to sales in the area of renewable energy sources.
The Industry business field, which primarily includes bridge-coating,
passive fire-proofing and other surface-protection services, saw sales rise
from EUR 19.4 million the previous year to EUR 21.1 million at the end of
September 2011, with the bridge business turning in the best performance.
The Other Services division (steel construction, scaffolding and access
services) significantly exceeded expectations, with total sales of EUR 24.9
million (first nine months of 2010: EUR 14.6 million).
Outlook
Following a slow beginning of the fiscal year, a large part of the business
has stabilized in the meantime. According to current information, the
Executive Board expects final quarter results to be on a comparatively low
level, meaning that only the lower end of the previously forecast range
looks achievable (sales revenues of between EUR 150 and 175 million, EBIT
of between EUR 4 and 7 million). Special charges may further burden the
earnings situation.
Key figures6:
in kEUR First 9 months of 2011 First 9 months of 2010 3rd quarter of 2011
3rd quarter of 2010
Sales 126,424 125,767 45,674 40,570
EBITDA1 8,685 9,173 3,382 2,127
EBIT2 4,298 4,283 1,921 515
EBT3 2,893 3,207 1,421 126
Earnings per share (EUR) 0.07 0.11 0.05 -0.01
Consolidated earnings after non-controlling interests 1,392 2,010 868 -145
Cash flow 8,270 8,540 3,926 1,654
Investments 4,820 3,209 2,460 666
Depreciation and amortization 4,387 4,890 1,461 1,612
in kEUR 30 September 2011 31 December 2010
Balance sheet total 111,547 108,328
Fixed assets4 45,831 45,916
Equity 61,689 61,258
Number of employees5 2,120 2,281
1 EBITDA: Profit from operations, plus depreciation
2 EBIT: Profit from operations
3 EBT: Earnings before taxes
4 Fixed assets: Total of non-current assets less deferred tax assets
5 Average number of employees during the entire reporting period
6 For all further information, please consult the full interim report for
the first nine months of 2011
About Muehlhan:
The Muehlhan Group is a global specialist in high-quality surface
protection and industrial services. Our business divisions - Ship
Newbuilding, Ship Repair, Energy, Industry and Other Services - enable us
to provide a broad range of professional services to our maritime and
industrial markets. The excellent quality of our service, our high degree
of organization, our technical expertise and almost 130 years of experience
are what set us apart.
With our workforce of around 2,300 employees at more than 30 locations
worldwide, we generated sales revenues of EUR 165.0 million in 2010. In the
years to come, we will utilize our market position as a stable foundation
for further expanding our business.
Press contact: Ties Kaiser, Muehlhan AG; Tel: +49 40 75271 -156 10 640,
e-mail: kaiser@muehlhan.com
End of Corporate News
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Language: English
Company: Muehlhan AG
Schlinckstrasse 3
21107 Hamburg
Germany
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
End of News DGAP News-Service
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