Sales for the third quarter 2007 totaled EUR 66.1 million compared with EUR 57.6
million for the same period the year before. Sales have therefore increased by
15% over last year.
Profit from operations EBIT in the third quarter 2007 was EUR 1.8 million, which
is 2.7% of income compared with 1.7 million last year.
Shares in the Dutch company Stork NV are charged at calculated market price and
appear as a EUR 6.7 million loss in associated companies in the third quarter.
Sales for the first nine months of 2007 totaled EUR 210.9 million compared with
EUR 136.8 million, which is about a 54% increase from the previous year.
Proforma sales increase during the period was about 2.7%.
Profit from operations EBIT during the period January to September 2007 was EUR
8.4 million, compared with 6.4 million the year before. Charged one-time costs
resulting from integration totaled about EUR 5 million during the first half of
the year. Profit from operations EBIT before one-time costs was 6.4% of sales
(13.4 million), compared with 4.7% the year before.
Net profit for the period January to September 2007 was EUR 2.7 million compared
with 0.7 million in 2006.
Working capital from operations totaled EUR 11 million compared with 0.7 million
last year. Cash generated from operations totaled EUR 9.6 million, which was
negative by about 6.4 million at the same time in 2006. Net cash at the end of
the period totaled EUR 9.2 million, a reduction of about 40.4 million from the
end of June 2007, in particular because of buying shares in Stork NV.
Equity totaled EUR 150.0 million, and equity ratio was 38.5% at the end of
September 2007. The company is well financed to take on continued external
growth.
Formal discussions concerning the company's possible purchase of Stork Food
Systems are ongoing.
Hörður Arnarson, CEO:
“Integrating the operations of Marel, Carnitech, Scanvægt and AEW/Delford under
the name Marel Food Systems is progressing according to plan. While significant
results have been achieved in integrating the companies, there is still much
work left in order to take advantage of the synergistic possibilities that the
merged companies present. Synergistic effect is not yet impacting the company's
performance.
When taking into account one-time costs, then 6.4% EBIT at a year of great
transformation is in line with the company's objective of achieving an EBIT
above 10% next year. It is positive that the company's cash flow is strong.
Marel Food Systems is well financed to take advantage of those opportunities
that arise over the coming months, with a great support of its largest
shareholders.”
Prospects
Prospects on the company‘s largest markets are good, and significant investments
by its customers are pending over the coming months.
The merger of Marel, Carnitech, AEW/Delford and Scanvægt will create a company
with a broad product range, strong marketing network, outstanding service
network and a unique position in various product categories. Extensive internal
work resulting from integration will, however, continue to dampen conventional
productivity within the company over the upcoming quarters.
It is anticipated that integration will return a minimum increase in operational
profits of EUR 15 million by reducing costs and increasing productivity, with
the objective of achieving an EBIT of at least 10%. At the same time, additional
internal growth is anticipated through improved investment utilization in
product development, and by strengthening sales and marketing work. Initial
strategy anticipated that integration of the companies would take about 2 - 3
years, but this has been changed to 1.5 - 2 years, with the full impact being
felt by mid 2008. It is projected that the positive effects of integration on
company performance will begin being felt in the fourth quarter of this year.
For further information, contact:
Hörður Arnarson, CEO Tel: (+354) 563-8000
