Summary
Satair had a good start to fiscal 2007/08. The Group posted USD 100.4 million
in first-quarter revenue, up 21% from last year and slightly above
expectations. Among the main achievements of the Aftermarket Division was a
strengthening of its position in the US market, where it made considerable
progress, and fine results in Europe and Asia. The OEM Division attained strong
growth in all markets, posting total revenue growth of 27% from the
year-earlier level. The EBITDA margin before special items (costs of incentive
program and profit on sale of property) came to 10.1%, up from 6.8% last year
and reflecting forward sales of USD which contributed USD 2.2 million in net
income in the period in review.
The outlook for the full year is unchanged. A somewhat higher gross margin is
expected to compensate for the higher financial costs caused by the fair value
adjustment of interest hedge contracts. These contracts have no cash flow
effect.
1Q 2007/08 in brief
The Group posted USD 100.4 million in consolidated revenue, up 21% from last
year.
The Aftermarket Division: USD 67.9 million, up 19%
The OEM Division: USD 32.4 million USD, up 27%
The gross margin came to 21.3, up from the year-earlier level of 20.4.
The first-quarter EBITDA margin before special items came to 10.1% against 6.8%
last year.
EBITDA totaled USD 10.3 million - up 83%.
Profit before tax came to USD 5.6 million - up 73%.
Cash flows from operating activities were negative in an amount of USD 2.4
million against USD 5.3 million in negative cash flows in the same quarter last
year.
The financial performance in 1Q reflects a significant impact of the declining
USD rate. The USD/EUR rate declined 4.8% in the period in review, and as Satair
had sold USD 49 million under contract in early 1Q, the figures for the period
include a total of USD 2.2 million in unrealized profit on fair value
adjustments of these contracts. The declining dollar rate had a positive effect
on revenue corresponding to approx. 1.5 percentage points of revenue growth. On
the other hand, the declining USD rate caused an increase in total costs in the
range of 2% rated to revenue. Accordingly, the amount in first-quarter EBITDA
reflects an overall effect upwards of USD 1.5 million in net income because of
the decline of the USD.
Webcast
On Friday, November 9 2007, at 10.30am a conference call and webcast will be
arranged on the subject of this release. To attend, dial +45 3271 4767 five
minutes before the above time. The conference may be accessed via the link at
http://webcast.zoomvision.se/denmark/clients/satair/071109/ or on Satair's
website www.satair.com. The conference will subsequently be available on
Satair's website.
