DGAP-News: KHD Humboldt Wedag International AG / Key word(s): Half
Year Results
KHD Humboldt Wedag International AG: KHD EBIT close to breakeven in
the first half
28.08.2014 / 08:00
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KHD EBIT close to breakeven in the first half
- Low order intake due to poor market conditions
- Revenues slightly higher than in the previous year
- Positive development in the service business partially offsets weak
margin development in the project business
- Higher investments in strategic growth
- Comfortable liquidity and equity base
Cologne, Germany, August 28, 2014. The earnings position of KHD Humboldt
Wedag International AG (KHD), one of the world's leading providers of
equipment and services for the cement industry, continued to be affected by
weak market conditions and unsatisfactory margin quality in the order
backlog in the first half of 2014. Revenues slightly increased to EUR 114.8
million with a slightly negative EBIT of EUR -0.9 million. The positive
contribution to earnings of the Parts & Service segment was not able to
fully offset the disappointing results in the Capex segment.
Although KHD's order intake of EUR 52.0 million was higher than in the
previous year (EUR 40.4 million), it remained well below expectations. In
the Capex segment a significant new order in Russia could not be booked as
order intake due to continuing uncertainties in connection with the Ukraine
crisis. Therefore, new orders in the Capex segment amounted to a low EUR
24.6 million. The Parts & Services segment contributed EUR 27.4 million to
H1 2014 order intake. As a result of the low order intake and the ongoing
execution of existing projects KHD's order backlog as of June 30, 2014 was
at EUR 276.5 million and thus significantly lower than for the same period
last year.
Revenues of EUR 114.8 million (previous year: EUR 111.5 million) came in
largely from projects, which were taken in recent years under strong margin
pressure. This affected KHD's gross profit, which amounted to EUR 16.0
million (previous year: EUR 17.6 million), bringing gross profit margin to
13.9% (previous year: 15.8%).
Earnings before interest and taxes (EBIT) amounted to EUR -0.9 million
(previous year: EUR 3.1 million) in the reporting period. This corresponds
to an EBIT margin of -0.8%. Positive EBIT in the Parts & Services business
of EUR 6.3 million was offset by negative EBIT in the Capex segment of EUR
-7.2 million. Earnings per share were EUR -0.02 (previous year: EUR 0.05).
"Despite the weak market and margin situation, we are investing in the
expansion of our business model," said KHD CEO Jouni Salo. "We have
strengthened our service business and once again intensified research and
development activities."
Total cash and cash equivalents of EUR 228.0 million remain virtually
unchanged when compared with the end of 2013. As of June 30, 2014, the
equity ratio was at a comfortable 55.2%.
For the 2014 financial year, the Group is expecting total order intake to
be slightly lower than the previous year's figure (EUR 172.4 million) and a
revenue decline of up to 10%. The Group's EBIT margin is expected to be
slightly negative. Profit before tax should be positively affected over the
course of the year, due to the conclusion of lending agreements to AVIC
with attractive interest rates.
The complete 2014 Half-Year Report for KHD Humboldt Wedag International AG
is available at www.khd.com under Investor Relations/News and financial
reports.
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 cement 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
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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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284299 28.08.2014
DGAP-News: KHD Humboldt Wedag International AG: KHD EBIT close to breakeven in the first half
| Source: EQS Group AG