DGAP-News: Tognum AG: Tognum raises earnings guidance
(firmenpresse) - DGAP-News: Tognum AG / Key word(s): Interim Report/Half Year Results
Tognum AG: Tognum raises earnings guidance
08.11.2011 / 07:30
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Tognum raises earnings guidance for 2011 after nine months
*Order intake up 16.8% in the first three quarters to EUR2,382.3 million
*Revenues increase by 21.2% to EUR2.057.7 million
*Increased adjusted EBIT margin of 11.5%
*Full year 2011: revenue guidance confirmed, earnings guidance raised
Friedrichshafen, 8 November 2011. The specialist for propulsion and power
solutions Tognum after nine months raises its earnings guidance for the
full year and at the same time confirms its revenue guidance. Order intake,
revenues and adjusted EBIT margin increased significantly in the first
three quarters compared with the same period last year. Tognum now expects
an adjusted EBIT margin of around 11%. This represents a significant
increase on last year's figure (2010: 9.4%). The company had previously
assumed it would achieve an adjusted EBIT of around EUR300 million for
2011. Tognum still expects to generate revenues of around EUR2.9 billion
for the full year 2011.
'Tognum this year benefits significantly from the positive performance of
its end markets: both order intake and revenues have risen in virtually all
application areas compared with last year. Based on the excellent earnings
performance in the third quarter, we expect to see slightly better earnings
for the full year than previously anticipated,' explains Joachim Coers, CEO
of Tognum AG. 'We continue to invest heavily in research and development to
further increase our technological edge and have already been able to
further reduce fuel consumption and life cycle costs of our products. All
in all, the signs at Tognum indicate further profitable growth.' With
regard to the closing of Tognum's takeover in the third quarter by
Rolls-Royce and Daimler, Joachim Coers adds: 'Our new majority owners are
supporting us on our way to becoming the world's leading provider of
propulsion systems and distributed energy systems.'
Significant increase in order intake and revenues
Order intake increased in the first nine months of the year by 16.8% to
EUR2.382.3 million (Q1-Q3 2010: EUR2.039.5 million), while revenues rose by
21.2% to EUR2.057.7 million (Q1-Q3 2010: EUR1.698.2 million).
Strong increase in adjusted EBIT, high adjusted EBIT margin
There was a strong increase in the adjusted EBIT of 54.8% to EUR237.1
million in the reporting period (Q1-Q3 2010: EUR153.2 million). The prime
reason for this rise, besides the absolute increase in revenues, was the
related improvement in capacity utilisation, higher efficiency levels, an
improved revenue mix and a favourable development in terms of prices
compared with costs. R&D expenditure in the first nine months of the year
was up 13.8% to EUR133.5 million as planned (Q1-Q3 2010: EUR117.3 million).
With these investments in the future, Tognum continues to expand its
technological edge with new engines and systems. The adjusted EBIT margin
increased to 11.5% (Q1-Q3 2010: 9.0%).
Adjusted earnings per share almost doubled
A 28.3% increase in adjusted gross profit to EUR617.0 million
(Q1-Q3 2010: EUR481.0 million) resulted in an adjusted gross profit margin
in the reporting period of 30.0% (Q1-Q3 2010: 28.3%). Adjusted group net
income was up 87.7% to EUR162.7 million (Q1-Q3 2010: EUR86.7 million),
resulting in adjusted earnings per share of EUR1.24 (Q1-Q3 2010: EUR0.66).
Adequate financing structure
Tognum's equity ratio as at 30 September had risen to 28.4% (31 December
2010: 26.8%). 'This is the highest equity ratio since our IPO in 2007.
Furthermore, based on the company's earnings power the net financial debt
is low,' says Tognum CFO Dieter Royal. Net financial debt increased
slightly to EUR101.0 million (31 December 2010: EUR57.2 million), which was
primarily due to the dividend payment in the second quarter of EUR65.7
million. Free cash flow was down in the first nine months to EUR20.6
million (Q1-Q3 2010: EUR103.7 million). This mainly reflects the high
investments in the future and the growth-related increase in working
capital. 'Our financial management system is designed to support Tognum's
long-term profitable growth by means of an appropriate financing
structure,' says Royal. 'We are also flexible enough in financial terms to
ensure that we are able to consistently make whatever future investments
are required for our growth and product strategy.'
Improved performance in all reporting segments
All three reporting segments - Engines, Onsite Energy&Components (OE&C)
and Distribution - improved their performance in the first nine months of
the year.
Revenues in the Engines segment were up 15.2% in the reporting period to
EUR1,395.5 million (Q1-Q3 2010: EUR1,211.0 million). In the Oil&Gas
application area, there was a disproportionately high increase in revenues.
This was due to the increased investing activities in this application area
resulting from the increase in raw material prices. In the Industrial
application area, rail and mining performed positively due to the
continuing economic upswing. In the Marine application area, yacht and
commercial business in particular contributed to the increase in revenues.
In the Defense application area, revenues stagnated, as many projects were
coming to an end and new projects, as scheduled, were not yet ready for
completion. After Sales/Other business declined slightly, but remains at a
high level. The adjusted segment EBIT increased significantly in the first
three months by 30.4% to EUR200.1 million (Q1-Q3 2010: EUR153.4 million).
The adjusted EBIT margin of this segment, at 14.3%, was significantly above
last year's level
(Q1-Q3 2010: 12.7%).
The OE&C segment reported a significant increase in revenues in the
reporting period by 29.5% to EUR683.1 million (Q1-Q3 2010: EUR527.6
million). The OE Diesel Systems&Engines application area continues to
drive revenues. The business in diesel systems and the supply business with
OEM customers both performed very positively. The business in gas systems
in the field of OE Gas Power Systems is growing rapidly. The After
Sales/Other application area saw an increase at an already high level of
activity. The adjusted segment EBIT improved considerably compared with
last year to EUR63.0 million (Q1-Q3 2010: EUR19.7 million). This represents
an adjusted EBIT margin of 9.2%
(Q1-Q3 2010: 3.7%).
The revenue volume of the Distribution segment increased by 82.0% in the
first nine months to EUR357.8 million (Q1-Q3 2010: EUR196.6 million). The
adjusted segment EBIT was up 50.7% to EUR20.5 million as a result of this
strong growth in revenues (Q1-Q3 2010: EUR13.6 million), which means an
adjusted EBIT margin of 5.7% (previous year: 6.9%).
The interim report for the first nine months of 2011 is available for
download at www.tognum.com under 'Investors'.
Key figures for the Tognum Group
In EUR million
(except*) Q1-Q3 2010 Q1-Q3 2011 Change Q3 2010 Q3 2011 Change
Order intake 2,039.5 2,382.3 16.8% 650.0 731.3 12.5%
Revenues 1,698.2 2,057.7 21.2% 612.2 718.8 17.4%
Gross profit margin
(adj.)* 28.3% 30.0% 1.7pp 27.4% 27.3% -0.1pp
EBIT (adj.) 153.2 237.1 54.8% 56.2 78.9 40.4%
EBIT margin (adj.) 9.0% 11.5% 2.5pp 9.2% 11.0% 1.8pp
Net profit (adj.) 86.7 162.787.7% 33.9 54.3 60.2%
Earnings per share
(adj.) in EUR 0.66 1.24 87.9% 0.26 0.41 57.7%
Equity ratio* 27.6% 28.4% 0.8pp 27.6% 28.4 0.8pp
Free cash flow 103.7 20.6 -80.1% 18.0 -4.8 -126.7%
Net financial debt 57.2 101.0 +76.6% 57.2 101.0 +76.6%
Employees* 8,998 9,697 7.8% 8,998 9,697 7.8%
Tognum
With its two business units, Engines and Onsite Energy&Components, the
Tognum Group is one of the world's leading suppliers of engines and
propulsion systems for off-highway applications and of distributed energy
systems. These products are based on diesel engines with up to 9,100
kilowatts (kW) power output, gas engines up to 2,150 kW and gas turbines up
to 45,000 kW.
The product portfolio of the Engines business unit comprises MTU engines
and propulsion systems for ships, for heavy land, rail and defense vehicles
and for the oil and gas industry. The portfolio of the Onsite Energy&Components business unit includes distributed energy systems of the brand
MTU Onsite Energy and fuel-injection systems from L'Orange. The energy
systems comprise diesel engines for emergency standby power, prime power
and continuous power, as well as cogeneration power plants based on gas
engines and gas turbines that generate both power and heat.
In 2010, Tognum generated revenue of around EUR2.56 billion and employs
more than 9,000 people. Tognum has a global manufacturing, distribution and
service structure with 23 fully consolidated companies, more than 140 sales
partners and over 500 authorized dealerships at approximately 1,200
locations. Since September 2011, Engine Holding GmbH, a joint venture
between Daimler AG and Rolls-Royce Group plc has a majority holding in
Tognum.
Disclaimer
Forward-looking statements
This release contains forward-looking statements based on assumptions,
forecasts and estimates made by Tognum's executive board of management.
Although we assume that the assumptions, forecasts and estimates forming
the basis for these forward-looking statements are realistic, we cannot
guarantee that they will prove to be correct in the future. Assumptions,
forecasts and estimates may entail risks and uncertainties which may cause
actual results to differ considerably from those included in
forward-looking statements. Factors which may result in such discrepancies
include, among other things, changes in the economic and business
environment, fluctuations in exchange and interest rates, the introduction
of competing products, lack of acceptance for new products or services and
changes in corporate strategy. Tognum undertakes no obligation to update
and/or to correct and/or to confirm forward-looking statements or to
release publicly any updates or corrections to any forward-looking
statements in order to reflect events or circumstances which occur after
the date of this release.
Contact:
Investors&Analysts contact:
IR Team
ir(at)tognum.com
+49 (0)7541-90 3318
Media contact:
PR Team
pr(at)tognum.com
+49 (0)7541-90 3989
End of Corporate News
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08.11.2011 Dissemination of a Corporate News, transmitted by DGAP - a
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Language: English
Company: Tognum AG
Maybachplatz 1
88045 Friedrichshafen
Germany
Phone: +49 (0)7541 90 3318
Fax: +49 (0)7541 90 90 3318E-mail: ir(at)tognum.com
Internet: http://www.tognum.de
ISIN: DE000A0N4P43
WKN: A0N4P4
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,
München, Stuttgart
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