Tognum AG / Quarter Results/Strategic Company Decision
08.05.2008
Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Tognum remains on course
Order intake in Q1 up 7 % to 875 million
Quarterly revenues increased by 9 % to 727 million
Adjusted quarterly EBIT stable at 100 million leads to
return on sales of 13.8 %, in line with financial year 2007
Adjusted Q1 net profit increased by 21 % to 58 million
Outlook for 2008 financial year unchanged
Friedrichshafen, 8 May 2008. Today Tognum AG presents its quarterly report
for the first three months of the 2008 financial year.
Figures Tognum Group (1 January 31 March)
Q1 2007 Q1 2008 Change
Order intake 815 m 875 m +7 %
Revenues 667 m 727 m +9 %
EBIT (adjusted) 100 m 100 m 0 %
Return on sales (adj.) 15.0 % 13.8 % -1.2 pp
Net profit (adj.) 48 m 58 m +21 %
Earnings per share (adj.) 0.40 0.44 +10 %
Equity ratio as at 31 March 5 % 24 % +19 pp
Volker Heuer, Chairman and CEO of Tognum AG, commented: 'We continue to
make excellent progress on our growth course: Quarterly order intake
reached an all-time high in the first three months of 2008. Year-over-year
we have again increased our revenues in the first quarter and year-to-date
we further reduced our debt. Signs for the full year still signal high
profitability.'
Very good order intake
The Tognum Group saw an increase of around 7 % in orders to 875 million
year on year during the first quarter of 2008 (Q1 2007: 815 million). As
in the previous year the book-to-bill ratio in Q1 was at 1.2 and therefore
higher than the 2007 full year average.
Revenue growth
Revenues rose in the first quarter by roughly 9 % to 727 million (Q1 2007:
667 million) as Tognum took its share of positive developments in the
market. Production capacity utilisation remained high.
Stable return on sales
In the first quarter of 2008, the Tognum Group achieved an adjusted* EBIT
(earnings before interest and taxes) of 100 million. Despite a markedly
weaker US Dollar, with an average exchange rate of 1.50 USD/EUR in Q1 2008
(Q1 2007: 1.31 USD/EUR), the return on sales in Q1 2008 amounted to 13.8%,
as in 2007 overall (Q1 2007: 15.0 %). It is fully in line with the
expectations for the full year 2008.
Net profit increased by 26 million to 63 million in the first quarter of
2008 (Q1 2007: 37 million). Taking one-time effects and non-operative
events into account (such as increased depreciation and amortisation due to
purchase price allocations (PPA, resulting primarily from the acquisition
of the off-highway business from DaimlerChrysler in 2006) as well as
exchange rate factors resulting from valuation of US Dollar bank
liabilities at the reporting date and hedges, adjusted net profit rose in
Q1 2008 by 21 % to 58 million (Q1 2007: 48 million).
This improvement is based on a lower tax rate and lower interest expenses
due to a lower level of outstanding debt. Adding to the interest expense,
but not considered as one-time effect in the adjusted net result, the
strong reduction in USD interest rates in Q1 2008 had an effect on the
market evaluation of interest swaps, which alone led to a negative
evaluation effect in net income of around 9 million.
The adjusted quarterly earnings per share amounted in Q1 2008 to 0.44
which corresponds to an increase of 10 % as compared to Q1 2007 (0.40).
Growth in both segments
Both segments saw an year-over-year increase in Q1 revenues: The segment
Engines grew by roughly 5 % to 617 million (Q1 2007: 588 million) and the
segment Onsite Energy Systems & Components (OES&C) grew by roughly 43 % to
144 million (Q1 2007: 101 million, still excluding Katolight).
Adjusted EBIT also increased in both segments year-over-year. In the
segment Engines, the adjusted EBIT in Q1 2008 amounted to 96 million (Q1
2007: 94 million); the segment OES&C generated an adjusted EBIT of 10
million representing an increase of 3 million year-over-year (Q1 2007: 7
million, still excluding Katolight).
Both revenues and adjusted EBIT of the subsegment Onsite Energy were
positively impacted in Q1 2008 by the April 2007 acquisition of the
US-based Katolight Corp which in Q1 2008 achieved revenues of 36 million
and an adjusted EBIT of 2 million.
Equity ratio significantly higher
The Group again increased its equity ratio to 24 % as of 31 March 2008. On
31 December 2007, it was at 23 %, on 31 March 2007 it was only at 5 %. Net
financial debt also decreased until end of Q1 2008 by an additional 49
million to 245 million (31 December 2007: 294 million; 31 March 2007:
645 million).
Number of employees continues to increase
As of 31 March 2008, the Tognum Group employed a total of 8,354 (31 March
2007: 7,343). The number of employees increased in the first quarter of
2008 by 175 (31 December 2007: 8,179 employees). This represents an
increase of 14 % or 1,011 employees year-over- year including Katolight.
Outlook unchanged
After the first four months of 2008, Tognum continues to expect constant
growth in almost all applications and regions for the relevant off-highway
products. On the basis of the average bank expectations of March 2008,
Tognum expects an average exchange rate of 1.45 US Dollars per Euro in 2008
overall.
For the 2008 financial year, the company continues to expect year-on-year
sales growth of 12 %, with a fluctuation corridor of plus or minus one
percentage point. If the real economic and financial conditions remain the
same, Tognum also expects an unchanged adjusted return on sales of 14 %
(fluctuation corridor of plus or minus one percentage point) in 2008. For
the running financial year Tognum will continue to strive for an increase
of 25 % in the adjusted earnings per share to more than 2.00 and plans to
distribute a dividend of more than 30 % of the annual net profit.
Further development of Group structure effective 1 Jan 2009**
On 7 May 2008, the Supervisory Board and the Executive Board decided about
the systematic continuous development of the business model based on the
strategic objective of acting as both a provider for comprehensive
solutions for off-highway drive and propulsion systems as well as a global
leader for decentralised energy. The decision of the Boards entails an
alignment of responsibilities within the Executive Board. Activities in the
area of engines for electrical power generation will be combined with those
for decentralised energy systems (diesel and gas based as well as fuel
cells) under the leadership of EVP Christof von Branconi in the business
unit Onsite Energy & Components.
The responsibility for off-highway drive and propulsion systems, which in
the future includes the applications Marine, Industrial, Oil & Gas
(mechanical power generation) and Defense will be transferred to EVP Rainer
Breidenbach in the second business unit, Engines. EVP Dr. Gerd-Michael
Wolters will assume board responsibility for development and operations of
MTU engines for use in both business units. The responsibilities of Volker
Heuer as Chairman and CEO and of EVP Joachim Coers (Finance, Personnel and
Group Services) remain largely unchanged.
As a result of the IPO, the Tognum Group introduced segmental reporting for
Engines and Onsite Energy Systems & Components in accordance with the
current IAS 14 reporting requirements. The introduction of IFRS 8 , which
in the future is replacing IAS 14, makes it necessary to realign Group
segmental reporting as of 1 January 2009. The complete effects on the
future Group segmental reporting will be described during an analyst
conference in the fourth quarter of 2008.
As a result of the strategic growth initiatives, Tognum acquired 100 % of
US-based Katolight Corp., which offers diesel-based onsite energy systems,
in April 2007 and, before that, purchased all minority shares of
subsidiaries MDE Dezentrale Energiesysteme GmbH (gas-based systems) and CFC
Solutions GmbH (systems based on fuel-cells). These three companies today
represent the business unit Onsite Energy Systems. To more clearly position
the business model of MTU engines used for electrical power generation as
well as individual and combined systems for end customers, the brands CFC
Solutions, Katolight and MDE will be gradually replaced by the new product
brand MTU Onsite Energy over the coming years. This uniform market
appearance will enable the company to positively shift their image from the
MTU product brand to the area of energy systems and thus achieve an even
better market position.
* The adjustment effects currently consist of the increase in ongoing
depreciation from the purchase price allocation (PPA)* - particularly from
the sale of the off-highway activities of DaimlerChrysler in 2006 - and the
exchange rate effects from the valuation of US Dollar bank liabilities and
hedges as at balance sheet date.
** IFRS 8 is a result of the short-term convergence project between the
IASB and the US accounting standards setting organization, the FASB. It is
compulsorily applicable retrospectively for financial years starting after
31.12.2008. This is a de facto alignment of the regulations for segment
reporting with the requirements of SFAS 131 Disclosures about Segments of
an Enterprise and Related Information according to US GAAP. The Operating
Segments of IFRS 8 replace the previously valid Segment Reporting standard
IAS 14. IFRS 8 replaces the IAS 14 'risk and reward approach' in the scope
of segmentation, with the 'management approach' of SFAS 131, already in use
for longer. In principle, the scope of segmentation is undertaken in
accordance with the internal reporting system and not, as in IAS 14, with
the division into business and geographical segments.
Disclaimer regarding forward-looking statements et al.:
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This report also contains forward-looking statements based on assumptions
and estimates of Tognums Executive Board of Management. Although we assume
that our assumptions and estimates on which we have based these
forward-looking statements are realistic, we cannot guarantee that they
will in the future prove to be correct. The assumptions and estimates, by
their nature, may harbour risks and uncertainties that may cause the actual
figures to differ considerably from the forward-looking statements. Factors
that may cause such discrepancies include, among other things, changes in
the economic and business environment, variations in exchange and interest
rates, the introduction of competing products, lack of acceptance for new
products or services and changes in corporate strategy. Tognum does not
undertake any obligation to update, to review or to confirm the
forward-looking statements or to release publicly any revisions to any
forward-looking statements to reflect events or circumstances after the
date of this announcement.
Investors & Analysts contact:
Achim Schneider
ir@tognum.com
+49 (0)7541-90 3318
Media contact:
Stefan Wortmann
pr@tognum.com
+49 (0)7541-90 4350
DGAP 08.05.2008
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Language: English
Issuer: Tognum AG
Maybachplatz 1
88045 Friedrichshafen
Deutschland
Phone: +49 (0)7541 90 3318
Fax: +49 (0)7541 90 90 3318
E-mail: ir@tognum.com
Internet: http://www.tognum.de
ISIN: DE000A0N4P43
WKN: A0N4P4
Indices: MDAX, CDAX, Classic All Share, Prime All Share
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Hannover, Düsseldorf, Hamburg, München, Stuttgart
End of News DGAP News-Service
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DGAP-News: Tognum AG: 1st Quarter 2008 results with increase of order intake by 7% and revenues by 9%
| Source: EQS Group AG