AUGSBURG, Germany, Aug. 11, 2004 (PRIMEZONE) -- BOWE SYSTEC announces results for Second Quarter and First Half Year 2004
* Orders received in Second Quarter 2004: EUR 81.2 million +18 %
* Group turnover in Second Quarter 2004: EUR 71.2 million -13 %
* Group EBITDA in Second Quarter 2004: EUR 5.0 million -43 %
* Group net results in Second Quarter 2004: EUR -1.7 million
In the second quarter of the financial year 2004 BOWE SYSTEC AG (ISIN DE0005239701) has not yet reached its target increase rates for sales and results. However an improvement was noted in comparison to the very hesitant first quarter 2004. A clear revival was evident in the level of orders received. The increase in orders received amounted to 18% higher than the same quarter in the previous year. As a result of this positive development, orders in hand increased in the half year comparison by around 20% to EUR 62.4 million. This is the highest half-year value in the group's history.
Second quarter 2004: In the months April to June 2004 BOWE SYSTEC achieved a group turnover down 13% to EUR 71.2 million compared with EUR 81.6 million in the previous year. Turnover in the corresponding quarter in the previous year included a large order in the mail checking and sorting systems area, which was concluded according to plan in 2003. The second quarter of 2004 was characterised by special occurrences in the USA and Germany. In the USA in the second quarter the complete production works for sorting systems and scanners was moved, in order to achieve long-term process and cost advantages; this move resulted in interruptions to production in the second quarter 2004 and led to proceeds and results being postponed to the second half year 2004. In the Augsburg works the whole production area was reorganised into an exhibition room on the occasion of a company fair (Open House). As a result some projects were partially put back into the third quarter.
Orders received in the second quarter came to EUR 81.2 million and were thus 18% higher than the same quarter in the previous year. The result before interest, tax and depreciation (EBITDA) was EUR 5.0 million, down 43% against the same period in the previous year. The net result in the same period was EUR -1.7 million compared to EUR 2.5 million in the same quarter in the previous year. Significant reasons for this were the decline in the results caused by the level of sales, as well as the increased level of marketing activities undertaken in the second quarter. As well as the company fair, held on a two-year cycle, the trade fair "Drupa", which lasts for two weeks, was a major event that attracted many international visitors. In addition higher depreciation and amortisation of goodwill to the sum of EUR 1.4 million arose, together with integration costs associated with the expanded activities in the card personalisation area.
First half year 2004: The business trend in the first half year 2004 was in all rather restrained. Group turnover totalled EUR 137.6 million compared with EUR 159.1 million in the months January to June of the previous year, which amounted to a decrease of 13.5%, of which 5% can be ascribed to currency conversion fluctuations. Orders received showed an increase of 7,5% to a new maximum level of EUR 159.9 million (+14% after adjustment for currency costs). The result before interest, tax and depreciation (EBITDA) could not match the level of the first half-year 2003. The EBITDA came to EUR 8.3 million compared to EUR 14.7 million.
The result after tax fell from EUR 1.1 million to EUR -4.1 million. This was caused above all by the decline in the results caused by the level of sales, alongside increased marketing activities. Additionally in the half-year comparison, there was higher depreciation and amortisation of goodwill to the level of EUR 1.7 million, as well as integration costs associated with the expanded activities in the card personalisation area. A substantial increase in both sales and results is anticipated for the second half year. In outlook for the year 2004 as a whole, the Board estimates that group turnover will be EUR 340 to 360 million with a group annual net profit of EUR 18 million to EUR 20 million.
Second Quarter First Half Year
Financial Year
2004 2003 2004 2003
Orders received
(Million EUR) 81,2 69,0 159,9 148,8
Sales (Million EUR) 71,2 81,6 137,6 159,1
EBITDA (Million EUR) 5,0 8,7 8,3 14,7
EBIT (Million EUR) 0,3 5,4 -0,1 8,0
EBT (Million EUR) -1,1 3,0 -2,7 3,2
Net results (Million EUR) -1,7 2,5 -4,1 1,1
EPS (EUR) -0,26 0,41 -0,62 0,18
Staff - - 2.662 2.739
Complete interim report is attached as pdf file: http://hugin.info/130395/R/955024/136429.pdf