DGAP-News: BayWa avoids typical Q1 seasonal losses, earns almost 7 mn. EUR EBIT
(firmenpresse) - DGAP-News: BayWa AG / Key word(s): Quarter Results
BayWa avoids typical Q1 seasonal losses, earns almost 7 mn. EUR EBIT
10.05.2012 / 08:45
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BayWa avoids typical Q1 seasonal losses, earns almost 7 mn. EUR EBIT
The BayWa Group launched successfully into the 2012 fiscal year with
above-average results for the quarter. As with a year ago, seasonal losses
typically associated with Q1 were avoided: The Group is reporting an EBIT
(earnings before interest and tax) of roughly 6.7 mn. EUR (prior year: 5.7
mn. EUR) for the first quarter of 2012. That bests even last year's strong
results. Overall sales at the international trading and services group
totaled 2.2 bn. EUR for the first three months of this year (PY: 2.0 bn.
EUR), which represents a 13.2 percent rise.
This positive development can primarily be attributed to results in the
Energy and Building segments. The Energy sector benefited from lively sales
of photovoltaic units in the US and Germany. Wind-power related project
business matched forecasts, leading to a corresponding rise in profits in
the regenerative energies area. The Building segment took advantage of
sustained strength in construction activity. Improving weather conditions
allowed for the backlog from the two winter months to be mostly cleared up
over the course of March. The Agricultural unit also showed positive
development, although it did not match the prior year as hoped, when bad
weather was much less of a factor.
Because the first three months are affected by weather-related market
fluctuations and the seasonal nature of the BayWa business, they are only
of limited value for predicting the ultimate annual results at BayWa. They
nevertheless reinforce BayWa's positive expectations for 2012 as a whole.
'The above-average start to the season represents a good foundation for the
ongoing fiscal year. We are very pleased that instead of a seasonally
related negative EBIT that is typical for the first quarter, we have
managed to produce positive results for the second year in row,' BayWa AG
CEO Klaus Josef Lutz commented on the results. He expressed optimism that
the sales and profit figures would rise slightly over the prior year. The
current prognosis for the 2012 wheat harvest have been corrected downward,
leading to expectations of higher-than-average prices for agricultural
products and which will have a correspondingly positive result on the
agricultural sector. In the Building area as well, the steadily rising
number of construction permits attests to the ongoing strength there as
well.
If the general economic conditions remain stable, business with classical
fuel sources will also benefit from the strong German economy.
International project business involving wind and solar power facilities
should developed according to forecasts, more than compensating for the
expected weakness in PV module sales.
Results in Agricultural segment weak as expected
In the first three months of 2012 the group's Agricultural division, which
is responsible for trade involving agricultural equipment and products as
well as the areas of technology and fruit, achieved total sales of roughly
1.1 bn. EUR. These first quarter results represent a 7.8 percent
year-on-year rise. As of 31 March 2012, EBIT was lower by 10.1 mn. EUR in a
year-on-year comparison, to 20.1 mn. EUR. This can be attributed to theextraordinarily good 2011 results. The slight rise in YoY sales is the
result of high prices for equipment as well as a strong order book in the
technology business.
As expected, the high margins seen a year ago could not be repeated in the
grain trade. At the time, the grain trade benefitted in particular from
very strong follow-up orders and from the advantageous price trends on the
market during Q1. By contrast, the 1Q 2012 margins between the purchase and
sales prices were significantly smaller.
The tractor and other agricultural machine business continued to gain speed
in 1Q 2012. Compared year-on-year, sales in the technology unit grew by
roughly 57 mn. EUR to 252 mn. EUR in total. EBIT rose by roughly 29.4
percent to 0.2 mn. EUR. The good start into the ongoing fiscal year also
resulted from the strong order backlog from the prior year. The fruit trade
also rose in terms of year-on-year sales (+4.5 mn. EUR) and EBIT (+60.4% to
1.4 mn. EUR). Due to the first-time consolidation of Turners&Growers
(T&G), a globally leading stone fruit supplier, the unit will likely see
strong growth for the remainder of the year.
Energy segment benefits from strong quarterly growth in renewable energies
Total sales in the Energy segment increased during the reporting period by
roughly 42 percent to 795.7 mn. EUR. The year-on-year growth in sales
reflects BayWa's trade and service activities in the area of regenerative
energies as well as higher oil prices. The rise in sales was also observed
in the operative results. In 1Q 2012 the Energy segment produced profits
roughly 7.6 mn. EUR higher, to 7.1 mn. EUR. The significant jump in
year-on-year profits can primarily be attributed to the strong demand in
the photovoltaic segment and positive trends in the wind power business.
Due to advantageous wind conditions, profits from energy produced at the
'La Muela' wind park in Spain rose at higher-than-average levels. The
'Selmsdorf II' wind park was also sold as planned.
Despite a rise in demand in February 2012, results in the classic trade and
distribution business were weighed down by ongoing weak demand for home
heating oil. Sales volumes in the lubricant and fuel area rose slightly
year-on-year, with higher personnel and operating costs cutting into
margins. On the whole, sales in the conventional energy trade rose by 35.9
percent to roughly 711.5 mn. EUR on the back of higher prices. EBIT dropped
due to the weak demand for home heating oil by -0.2 mn. EUR (PY: 1.1 mn.
EUR).
Building segment produced better-than-expected operational results
Following the spin-off of the BayWa Bau&Gartenmärkte in Germany, the
Building segment now essentially involves only the trade in building
materials. The inclusion of the building&garden markets into the joint
venture with the Hellweg-Group means that the building&garden market
business within the group has been entered on the balance sheet at equity
since January 1, 2012. Sales within the segment dropped accordingly in the
first three months by 16.2 percent compared year-on-year to 298.4 mn. EUR
(PY: 356.1 mn. EUR).
The negative EBIT impact typically expected during the first quarter for
wholesale and retail operations was reduced through the divestment of the
building&garden markets. On the whole, the negative results that are
typical of the season in the Building segment had actually sunk as of March
31, 2012 to -17.2 mn. EUR (PY: -19.6 mn. EUR). Following the period of cold
at the start of the fiscal year, building activity increased significantly
in March. The building material trade also profited from the sustained high
demand for photovoltaic components. The improved results also led to
savings in purchasing costs. The optimization of the sales structure also
had a positive impact.
Contact:
Marion Danneboom, BayWa AG, Head of PR/Corporate Communication,
tel. +49 (0)89/92 22-36 80, Fax +49 (0)89/92 22-36 98,
e-mail: marion.danneboom(at)baywa.de
End of Corporate News
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Language: English
Company: BayWa AG
Arabellastraße 4
81925 München
Germany
Phone: 089/ 9222-3691
Fax: 089/ 9222-3698
E-mail: marion.danneboom(at)baywa.de
Internet: www.baywa.de
ISIN: DE0005194062, DE0005194005,
WKN: 519406, 519400,
Indices: MDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard), München;
Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,
Stuttgart
End of News DGAP News-Service
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169077 10.05.2012
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