BayWa AG / Quarter Results
08.05.2008
Release of a Adhoc News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
Sharp increase in revenues and profit in the first quarter of 2008
Agriculture and Energy segments generate high growth
BayWa AG, a trading and services company, generated significant growth in
its Agriculture, Energy and Other Activities segments in the first three
months of 2008. All in all, the Group lifted revenues by almost 30 percent
to EUR 1.9 billion. In the period under review, ordinary profit rose to
plus EUR 10.9 million as compared with the previous years figure of minus
EUR 10.2 million. For the first time, therefore, the company achieved a
positive ordinary profit which is generally in the minus owing to the low
volume of business over the cold period. Despite the fact that the first
three months are of limited informative value, Group management considers
the above-average start to the season as a basis for a good annual result.
BayWa Aktiengesellschaft, Arabellastraße 4, D - 81925 München, www.baywa.de
WKN 519406 // ISIN DE0005194062; WKN 519400 //
ISIN DE0005194005
---------------------------------------------------------------------------
Information and Explaination of the Issuer to this News:
Agriculture segment records an excellent start to the season
The Agriculture segment benefited from the extremely healthy environment in
the first quarter of 2008 and got off to a good start in the new financial
year by raising revenues by 42 percent to EUR 980 million. Grain trading
in particular recorded sizeable growth, boosted by favourable conditions
for selling last years harvest. Similarly, the Agriculture business unit
sold considerably more fertilizer and feedstuff as compared with the
year-earlier period. Revenues of this business unit thus soared 46 percent
to EUR 827 million. The uptrend in the agricultural sector, which continued
to have a positive effect on the sale of machines and equipment as well as
the relevant services, brought revenues in the Agricultural Equipment
business unit to EUR 153 million, which is an increase of 24 percent.
On the back of brisk development in agribusiness, the Group raised the
segment result significantly from EUR 5.3 million to almost EUR 30 million.
Earnings in the grain and fertilizer businesses in particular were
substantially higher in a year-on-year comparison. The Agricultural
Equipment business unit also benefited from the positive investment
environment and raised profit.
Building Materials almost attain the previous years level
Despite weak residential construction, the Groups Building Materials
segment generated revenues of EUR 295 million which is a mere 1.5 percent
lower than the previous years level. BayWa views this development as being
satisfactory, as the first quarter of 2007 was favoured by extremely mild
weather conditions and follow-up orders in the wake of the abolition of the
governments home-owner subsidy. Other than in 2007, an early Easter this
year meant that there were three selling days less. Against this backdrop,
trading in building materials generated revenues of EUR 195 million, which
is only 2 percent lower than the previous years figure. After the
excellent garden business in the spring of 2007, the weather conditions
this year were also not as favourable. Nonetheless, revenues came to EUR
100 million, almost unchanged from the previous years level.
Although the ordinary profit of the Building Materials segment fell by EUR
5.8 million to minus EUR 23 million, given the extremely disparate
environments in the first quarters of this and last year, BayWa considers
this interim result satisfactory and in line with the seasonal trend of the
previous years.
Demand for heat energy on the rise
In the wake of higher oil prices and rising orders for heating oil, the
BayWa Group lifted its quarterly revenues in the Energy segment by 31
percent to EUR 469 million. The backlog in demand for heat energy, caused
by the mild winter of 2006/2007 and prices which have been rising for
months, therefore eased somewhat during the reporting quarter. Consumers
are filling their empty tanks, at least partly, despite higher prices. The
level of tanks nonetheless remains low. The diesel, petrol and lubricants
product business recorded stable sales figures in a quarter-on-quarter
comparison. Rising sales of heating oil also enabled the Energy segment to
increase its earnings as well. Ordinary profit grew from minus EUR 1
million to plus EUR 1 million in the reporting period.
Other Activities segment records growth in its food business
The Group also recorded strong growth in its Other Activities segment.
Revenues climbed 36 percent to EUR 124 million. Ybbstaler, a fruit
concentrate manufacturer, delivered good quarterly figures. Frisch & Frost
also had a good start to the new financial year with its potato products.
The car dealer operations also generated stable revenues in this period.
The segment profit rose 18 percent to EUR 3.1 million.
Basis for a good financial year
Despite the limited informative value of the first three months, BayWa
considers the revenues and earnings generated in the first quarter a sound
basis for a good financial year. The good start to business in the
Agriculture, Energy and Other Activities segments has strengthened optimism
for a positive development in these segments. The forecast for the Building
Materials segment is more cautious owing to the weak economic conditions in
the construction sector. Planning for this segment, however, also assumes
that the final figures for the year will improve slightly. Accordingly, the
projected higher revenue and profit targets are achievable provided that
exceptional weather and market conditions do not have a negative impact on
business.
Contact:
Lothar Schönberger, Tel. 089/9222-3692, E-Mail:
lothar.schoenberger@baywa.de
DGAP 08.05.2008
---------------------------------------------------------------------------
Language: English
Issuer: BayWa AG
Arabellastraße 4
81925 München
Deutschland
Phone: 089/ 9222-3692
Fax: 089/ 9222-3698
E-mail: presse@baywa.de
Internet: www.baywa.de
ISIN: DE0005194062, DE0005194005,
WKN: 519406, 519400,
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, Hamburg, München, Stuttgart
End of News DGAP News-Service
---------------------------------------------------------------------------
DGAP-Adhoc: BayWa AG: Sharp increase in revenues and profit in the first quarter of 2008
| Source: EQS Group AG