DGAP-News: BayWa AG / Key word(s): Quarter Results
BayWa remains on the path to success and is firmly focussed on
increasing EBIT in 2012
12.11.2012 / 10:30
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BayWa remains on the path to success and is firmly focussed on increasing
EBIT in 2012
The financial year continued to develop very positively for the BayWa Group
in the third quarter of 2012. The international trading and service
company's revenues came to around EUR7.9 billion on 30 September 2012
(previous year: EUR7.0 billion). EBIT amounted to EUR125.4 million
(previous year: EUR123.1 million). 'All three segments contributed to this
positive development,' explained Klaus Josef Lutz, CEO of BayWa AG, at the
presentation of the quarterly figures.
Business developed successfully in all three segments in the third quarter.
In the Agricultural Segment, BayWa profited from a good grain harvest in
its sales territories and a strong willingness to sell among farmers as
well as from the resulting rise in the collected amount of grain. Grain
price developments also had a positive impact on farmers' willingness to
invest in agricultural equipment. The business of the majority stake in New
Zealand-based Turners & Growers, which developed as planned, also had a
positive effect on revenues and EBIT in the Agricultural Segment. The
Energy Segment's revenues and EBIT increased due to continuously positive
business developments in the renewable energies sector. Contrary to
industry trends, conventional energy saw sales increase in lubricants,
heating oil and at petrol stations. The Building Materials Segment made up
the weather-related shortfalls from the first two quarters of 2012 by
improving logistics and procurement and profited from a good economic
climate in the construction industry.
'The highlight of the third quarter of 2012 was the acquisition of Cefetra
B.V. and Bohnhorst GmbH, which will transform BayWa into a player on the
international grain market,' commented Klaus Josef Lutz, who was very
pleased about the results of the past three months. His goal is to increase
EBIT further in 2012: 'The positive economic situation on the farming
market, increased collection volumes and grain prices, projects that are
developing positively or their planned sale in the renewable energies
business as well as the improved operating business in the building
materials trade are convincing us that, in 2012, we will exceed the
150-million EBIT mark from 2011.'
Agriculture: High grain collection volumes and growth through the
international fruit business
The Agriculture Segment, which comprises trading in agricultural resources
and produce as well as the Agricultural Equipment and Fruit Business Units,
generated revenues totalling EUR3.8 billion as of 30 September 2012
(previous year: EUR3.2 million). EBIT also rose to EUR81.8 million
(previous year: EUR75.2 million). The revenues increase is primarily due to
soaring grain production prices. The rise in EBIT mainly resulted from the
positive development of Turners & Growers the largest pome fruit trading
company in New Zealand, which has been a consolidated BayWa Group company
since the second quarter of 2012. Together with the German fruit business,
revenues in the Fruit Business Unit went up to EUR350.2 million (previous
year: almost EUR100 million). Its EBIT increased to EUR14.6 million as of
30 September 2012 (previous year: EUR2.4 million).
The Agricultural Trade Business Unit recorded revenues of EUR2.5 billion in
the first nine months of the current financial year (previous year: EUR2.3
billion). This rise reflects the better-than-expected grain harvest in
BayWa's sales territory and farmers' increased willingness to sell. The
operating resources business also showed stable development, while the
fertiliser business developed more modestly due to price levels. The
Agricultural Trade Business Unit's EBIT approximated EUR50.6 million as of
30 September 2012 (previous year: EUR55.4 million). This drop is primarily
due to the lower margins in the grain and fertiliser trade as the grain
price in particular has risen steeply in line with the harvest. However, as
the collected grain volumes alone increased by more than 20% year-on-year
to 1.5 million tonnes at BayWa, the company expects to be able to make up
this shortfall again by the end of 2012.
The Agricultural Equipment Business Unit managed to pick up on the very
positive figures in the previous year on account of the continuing
willingness to invest among farmers. Demand for mechanical engineering
products remained high in the third quarter and resulted in revenues rising
to EUR941.6 million as of 30 September 2012 (previous year: EUR787.7
million). Due to strategic investments to strengthen the competitive
position of locations and sales specialisations, EBIT fell to EUR16.6
million at the end of the third quarter (previous year: EUR17.4 million).
Energy: Renewable energies contribute almost 77% to segment result
Revenues in the Energy Segment went up to EUR2.7 billion as of 30 September
2012 (previous year: EUR2.1 billion). EBIT rose steeply to EUR25.0 million
(prior year: EUR14.1 million). Renewable energies accounted for just under
77% of revenues. 'Our strategy is to position ourselves on the
international market and to develop projects that we usually sell on
straight away once completed. This is working out excellently for our
company,' commented Klaus Josef Lutz with regard to this very positive
development. BayWa profited in the first six months of 2012, for instance,
from the boom in large PV systems caused by the previously announced
cutting of public grants in Germany around the middle of the year. As
expected, PV trade declined slightly in the third quarter. In the USA, on
the other hand, BayWa continued to record unfalteringly high demand for
solar modules. System sales, which went according to plan, also contributed
to the excellent development in the renewable energies business. Revenues
increased by more than 80% year-on-year to EUR300.7 million during the
first nine months of the current financial year (previous year: EUR163.9
million). EBIT more than doubled to EUR19.2 million as of 30 September 2012
(previous year: EUR8.6 million).
Conventional energy trading in diesel and petrol as well as heating oil and
lubricants went up slightly in the third quarter, contrary to the general
market trend. Wood pellets sales volumes also increased. Together with the
higher average heating oil price, revenues rose to approximately EUR2.4
billion as of 30 September 2012 (previous year: just under EUR2 billion).
The improved sales development also pushed up EBIT, which amounted to
EUR5.8 million as of 30 September 2012 (previous year: EUR5.5 million).
Building Materials: Building Materials catches up considerably in the third
quarter
The Building Materials Segment, which essentially only comprises trading in
building materials since the hiving-off of the DIY and garden centres in
Germany at the beginning of 2012, developed very positively in the third
quarter of 2012. Revenues came to EUR1.3 billion and EBIT to around EUR23.1
million as of 30 September 2012. The Building Materials Segment therefore
increased its EBIT by 15.9% and revenues by 17.6% as of the same date. 'We
are very pleased with developments in the Building Materials Segment.
Weather permitting, we may even be able to offset the lost revenues and
income from the discontinued DIY and garden centre business with building
materials sales alone by the end of the financial year,' explained Klaus
Josef Lutz, stating the positive economic development in the residential
construction and structural engineering industry as the driver for this
positive performance. He continued that the improved efficiency in the
logistics business and the strategic supplier focus also played an
important part.
Contact:
Marion Danneboom, BayWa AG, Head of PR/Corporate Communication,
tel. +49 (0)89/92 22-36 80, Fax +49 (0)89/92 22-36 98,
e-mail: marion.danneboom@baywa.de
End of Corporate News
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Language: English
Company: BayWa AG
ArabellastraÃe 4
81925 München
Germany
Phone: 089/ 9222-3691
Fax: 089/ 9222-3698
E-mail: marion.danneboom@baywa.de
Internet: www.baywa.de
ISIN: DE0005194062, DE0005194005,
WKN: 519406, 519400,
Indices: MDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard), München;
Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,
Stuttgart
End of News DGAP News-Service
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192610 12.11.2012
DGAP-News: BayWa remains on the path to success and is firmly focussed on increasing EBIT in 2012
| Source: EQS Group AG