DGAP-News: WashTec AG: WashTec is expecting considerable earnings growth in 2012 after a disappointing 2011
(firmenpresse) - DGAP-News: WashTec AG / Key word(s): Final Results
WashTec AG: WashTec is expecting considerable earnings growth in 2012
after a disappointing 2011
26.03.2012 / 11:24
---------------------------------------------------------------------
Press Release
WashTec is expecting considerable earnings growth in 2012 after a
disappointing 2011
- Revenue increase of 9.3% to EUR 293.3m in fiscal year 2011
- EBIT declined to EUR -10.2m due to non-recurring charges in the amount
of EUR 28.0m
- Net finance debt reduced to EUR 24.4m despite charges, equity ratio
remains good at 38.6%
- Strategic realignment of the Group, review of the options for the North
American business
- Slight revenue growth and significant earnings improvement anticipated
for 2012
Augsburg, March 26, 2012 - Consolidated revenues of the WashTec Group - the
leading supplier of innovative solutions for the carwash business worldwide
- rose in fiscal year 2011 by 9.3% to EUR 293.3m (prior year: EUR 268.4m).
After adjusting for acquisitions, the Group generated a 2.6% increase in
revenues. Group earnings were burdened significantly by the very
disappointing development in the North American business and the ensuing
costs that were triggered thereby. Given the non-recurring charges totaling
EUR 28.0m incurred for restructuring expenses, other provisions and,
write-downs on goodwill and other intangible assets, EBIT fell to EUR
-10.2m (prior year: EUR 20.3m), thereby landing the Group in the red. After
adjusting for these non-recurring effects, an EBIT of EUR 17.8m was
achieved.
'As a consequence of the massive problems encountered in our North American
business, fiscal year 2011 proved to be a great disappointment for WashTec.
We reacted immediately and have already been able to make great progress in
terms of strategic realignment and re-dimensioning of our activities there.
Although 2012 will also not be an easy year, we do expect significant
improvement with regard to the adjusted Group earnings', commented
management board speaker, Thorsten Krüger, on fiscal year 2011.
Consolidated net income declined to EUR -14.5m (prior year: EUR 10.8m).
Earnings per share equaled EUR -1.04 after having been at EUR 0.77 the year
before. For this reason, the management board and the supervisory board are
planning to recommend to the annual general meeting of shareholders, which
is scheduled for May 10, 2012, that no dividend should be paid for fiscal
year 2011. Nevertheless, WashTec continues to view its shares as
valued-oriented with an attractive return policy and remains committed to
its goal, as communicated last year, of sustainably distributing to its
shareholders roughly 40% of the net income in the form of dividends and/or
in the form of share buy-backs, provided that a conservative gearing ratio
of less than 1 can be maintained.
Balance sheet quality remains good despite non-recurring charges
Since the non-recurring charges for the North American business did not
impact the Company's cash position, WashTec is reporting appreciable net
cash flow of EUR 17.2m in 2011 as well (prior year: EUR 29.1m). Due to the
expansion of business activity, net current assets rose from EUR 68.2m to
EUR 75.5m. Thanks to positive cash flow, the Group was able to once again
reduce net finance debt (net bank debt plus long-term and short-term
finance leasing debt) by EUR 2.2m to EUR 24.4m. In contrast, the equity
ratio declined from 43.5% to 38.6%, and the gearing ratio climbed
accordingly from 0.28 to 0.32. Thus, WashTec still enjoys a good balance
sheet structure. The syndicated loan facility, which was extended in 2011
through the end of 2014, will ensure that the Group's mid-term financing
needs are covered.
Strategic realignment by focusing on innovation, sales, service and
internationality
In order to return as quickly as possible to a path of profitable growth
following the year of restructuring in 2012, management has begun
conducting a fundamental strategic realignment. Under the initiative,
WashTec's development work will focus more on creating added value for the
Group's customers and those customer's own wash clientele. WashTec's
experience from the diversification measures pushed in recent years shows
that these areas offer additional potential. This step is accompanied by
the continued professionalization of sales and a conversion of service to
purely scheduled maintenance. Moreover, the cost structures should be
further improved through the intelligent utilization of WashTec's global
supply chain and a further modularization in the field of production.
Moreover, the Company will continue its expansion specifically in the
strong-growth, emerging countries of Eastern Europe and Asia in order to
realize the mid-term to long-term potential of these regions.
Outlook 2012: Slight revenue increase and significant earnings growth
despite difficult environment
Particularly in the first half of fiscal year 2012, the hallmark of the
Company's work will be on realigning itself and, above all, on
re-dimensioning its North American activities. Thanks to a comprehensive
emergency program, significant cost reductions were already implemented in
2011 in the North American business. There will also be a narrowing and
focusing of those activities. According to the information available today,
the implemented program will not suffice in the current market situation,
however, in order to bring the US business activities over the mid-term to
an earnings margin that is comparable to the earnings margin reported by
the rest of the Group. For this reason, the possibilities of strategic
alliances are currently under review.
There are currently no plans to further expand the Company by making
additional acquisitions. Instead, the focus will remain on efficiency
measures and innovations in existing core business fields and on
investments in areas and regions representing the best growth opportunities
in the coming years, which applies above all, to Eastern Europe and Asia
(specifically China). The overall conditions for this industry, however,
are still marked by great uncertainty. For the full year forecast, the
Company is assuming that the North American business will be continued and
that the restructuring program will be implemented. On this basis, WashTec
is seeking modest revenue growth of 1 - 2% for the Group in 2012, with a
significant increase in adjusted earnings. Further non-recurring charges
caused by possible strategic alliances in North America cannot be currently
ruled out. By implementing the approved strategy, the Company is again
striving for sustained annual revenue and earnings growth of 4 - 7% in its
mid-term and long term planning.
'In view of the measures already implemented, a variety of planned
innovations and the growth opportunities in the emerging markets, above all
China and Eastern Europe, we are confident that we will come out of the
crisis not only stronger but also in a position to once again steer a
profitable course of growth in the mid-term and long term', announced Chief
Financial Officer, Houman Khorram, concerning the outlook of WashTec.
About WashTec:
The WashTec Group, with its headquarters in Augsburg, Germany, is the
leading supplier of innovative solutions for the carwash business
worldwide. WashTec employs more than 1,600 people around the world and has
subsidiaries in the European core markets, the US and Canada, as well as in
China and Australia. Furthermore, WashTec is represented in around 60
countries by independent sales partners.
Further information on the Company and the full 2011 annual report can be
found online at www.washtec.de.
Key Financial Figures of the Group:
EURm, IFRS 2011 2010 Change
Revenues 293.3 268.4 9.3%
EBITDA 19.3 29.9 -35.5%
EBITDA (adjusted) 28.2 29.9 -5.7%
EBIT -10.2 20.3 -
EBIT (adjusted) 17.8 20.3 -12.3%
EBIT margin (adjusted) 6.1% 7.6% -
EBT -11.8 18.6 -
Net income -14.5 10.8 -
Earnings per share* (in EUR) -1.04 0.77 -
Dividends per share 0.00** 0.31 -
Net cash flow 17.2 29.1 -40.9%
ROCE*** 16.4 19.9
EURm, IFRS Dec 31, 2011 Dec 31, 2010 Change*: Base: 13,976,970 shares
Balance sheet total 195.0 217.1 -10.2%
Equity 75.2 94.4 -20.3%
Equity ratio 38.6% 43.5% -
Net finance debt (as of Dec 31) 24.4 26.6 -8.3%
Gearing**** 0.32 0.28 14.3%
Net current assets***** 75.5 68.2 10.7%
Employees 1,651 1,639 0.7%
**: Planned recommendation to the annual general meeting of shareholders
*** 'Return on Capital Employed' = adjusted EBIT/ (total assets - total
liabilities - cash and cash equivalents) based on equal dividend payments
****: Net finance debt divided by equity
****: Trade receivables + inventories - trade payables
Contact:
WashTec AG
Argonstrasse 7
86153 Augsburg
Tel.: +49 (0)821 - 55 84 - 0
Fax: +49 (0)821 - 55 84 - 1135
End of Corporate News
---------------------------------------------------------------------
26.03.2012 Dissemination of a Corporate News, transmitted by DGAP - a
company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
---------------------------------------------------------------------
Language: English
Company: WashTec AG
Argonstraße 7
86153 Augsburg
Germany
Phone: +49 (0)821 55 84-0
Fax: +49 (0)821 55 84-1135
E-mail: washtec(at)washtec.de
Internet: www.washtec.de
ISIN: DE0007507501
WKN: 750750
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, München, Stuttgart
End of News DGAP News-Service
---------------------------------------------------------------------
161871 26.03.2012
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Bereitgestellt von Benutzer: EquityStory
" alt="Petrichor Reports Completion of Horizontal at Darst Creek Field, Texas
Datum: 26.03.2012 - 11:24 Uhr
Sprache: Deutsch
News-ID 128116
Anzahl Zeichen: 5667
contact information:
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 199 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"DGAP-News: WashTec AG: WashTec is expecting considerable earnings growth in 2012 after a disappointing 2011"
steht unter der journalistisch-redaktionellen Verantwortung von
WashTec AG (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
