DGAP-News: KHD Humboldt Wedag International AG / Key word(s): Final
Results
KHD Humboldt Wedag International AG: KHD Closes 2013 with Strong
Increase in Revenues and Slightly Positive Result
27.03.2014 / 07:59
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KHD Humboldt Wedag International AG Closes 2013 with Strong Increase in
Revenues and Slightly Positive Result
- Order intake significantly below previous year's level caused by
unfavorable market conditions
- Increase in revenues of 16.9%
- EBIT and EBIT margin reflect challenging market conditions
- Solid liquidity position and stable equity ratio
Cologne, Germany, March 27, 2014. KHD Humboldt Wedag International AG
(KHD), one of the world's leading suppliers of equipment and services for
the cement industry, achieved revenues of EUR 249.6 million in the 2013
financial year, a significant increase compared with the previous year.
Continued fierce competition and the unsatisfactory margin quality in the
order backlog had a negative impact. KHD nevertheless recorded a positive
EBIT of EUR 1.2 million.
KHD's order intake fell by 58.0% to EUR 172.4 million due to continued
cautious investment activity and delays in the awarding of orders. However,
KHD won important large orders from Russia, the USA, and Turkey in the
fourth quarter.
The high order backlog from the previous year prompted a 16.9% increase in
revenue to EUR 249.6 million. In addition to the project business the
stable business in spare parts and services contributed almost EUR 38
million to revenues. Gross profit margin declined from 20.5% to 11.8%. This
was caused in particular by the lower margin quality of projects won in a
highly competitive environment with strong margin pressure as well as by
difficulties in the execution of some projects.
In spite of the success in the strict management of overhead costs EBIT of
EUR 1.2 million (previous year: EUR 6.4 million), corresponding to an EBIT
margin of 0.5% (previous year: 3.0%), remained significantly below the
original forecast. Earnings per share were EUR 0.01 (previous year: EUR
0.14).
Total cash and cash equivalents decreased to EUR 228.2 million, primarily
caused by negative operating cash flow, but still remained on a high level.
At 53.2%, the equity ratio as of December 31, 2013, is at virtually the
same level as in the previous year. Together with the high liquidity, the
equity ratio provides a solid basis for future development.
"The takeover and intensified cooperation with our strategic partner AVIC
offer new opportunities," said KHD CEO, Jouni Salo. "Together with AVIC, we
will continue to develop our business and leverage the strengths of both
companies." Furthermore, the expansion of the spare parts and service
business, which will be managed in the newly launched "Parts & Services"
business unit, is an important cornerstone of KHD's future development.
KHD forecasts a significantly higher order intake in the 2014 financial
year due to projected market improvement. The Group expects only slightly
positive EBIT margin for the current financial year, due to continued
project execution of contracts with lower margins. Revenues are
forecasted to be on a similar level as in 2013.
The complete Annual Report for KHD Humboldt Wedag International AG for the
2013 financial year is available at www.khd.com under Investor Relations.
KHD Group
KHD is a global leader for providing equipment and services to cement
producers with over 150 years of experience in the cement industry. Process
engineering and project management are among the core competencies of the
technology-focused group. KHD offers a wide spectrum of products and
services for the cement industry and is a leader in environmentally
friendly and energy-efficient products for the grinding and pyro processing
sections of the plants. The holding company KHD Humboldt Wedag
International AG, based in Cologne, Germany, coordinates its
internationally operating subsidiaries. The group employs more than 750
employees worldwide, including customer service centers in growing markets
like India, Russia and the Asia Pacific region. KHD Humboldt Wedag
International AG (ISIN: DE0006578008, WKN: 657800) is listed on the
Frankfurt stock exchange (General Standard). More information: www.khd.com.
Contact
KHD Humboldt Wedag International AG
Michael Nielsen
Investor Relations
Tel.: +49 (0)221 6504 1500
E-mail: michael.nielsen@khd.com
Website: www.khd.com
End of Corporate News
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27.03.2014 Dissemination of a Corporate News, transmitted by DGAP - a
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Language: English
Company: KHD Humboldt Wedag International AG
Colonia-Allee 3
51067 Köln
Germany
Phone: +49 (0)221 6504 1500
Fax: +49 (0)221 6504 1409
E-mail: michael.nielsen@khd.com
Internet: www.khd.com
ISIN: DE0006578008
WKN: 657800
Listed: Regulierter Markt in Frankfurt (General Standard);
Freiverkehr in Berlin
End of News DGAP News-Service
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259909 27.03.2014
DGAP-News: KHD Humboldt Wedag International AG: KHD Closes 2013 with Strong Increase in Revenues and Slightly Positive Result
| Source: EQS Group AG