DGAP-News: WashTec AG: WashTec reports stable revenues in challenging environment
(firmenpresse) - DGAP-News: WashTec AG / Key word(s): Quarter Results
WashTec AG: WashTec reports stable revenues in challenging environment
05.11.2012 / 07:26
---------------------------------------------------------------------
Press Release
WashTec reports stable revenues in challenging environment
- Revenues (adjusted for foreign currency effects) after three quarters
at prior year level, order backlog significantly above prior year level
- EBIT declines to EUR 7.0m due to increasing operating costs and
non-recurring effects
- Sound balance sheet: financial debt reduced still further, equity ratio
at 41.1%
- Free cash flow significantly improved from EUR 6.4m to EUR 12.0m
Augsburg, November 5, 2012 - The WashTec Group - the leading supplier of
innovative solutions for the car wash business worldwide - was able to
maintain its revenues (adjusted for foreign exchange effects) at EUR 212.7m
during the first three quarters of 2012, thereby matching last year's
level, despite persistently difficult economic conditions. After factoring
in the positive foreign exchange effects, revenues increased by 2.1% from
EUR 212.7m to EUR 217.1m. The Group thereby reported 3% revenue growth in
the third quarter. The weak incoming orders reported at the beginning of
the year have increased also in Europe during the third quarter so that the
Group's order backlog at the end of the third quarter - contrary to the
trend in the machine construction industry - was substantially higher than
it was in the same period last year.
With respect to the segments, the market weaknesses in Core Europe - above
all in Southern Europe, the Benelux countries and Great Britain - have
yielded declining revenues and a significant drop in earnings. In contrast,
the divisions in North America and Emerging Europe greatly increased
revenues. In the North American business, this has led - together with the
implemented restructuring measures - to a significant improvement in
earnings, whereas Emerging Europe has reported lower contributions to
earnings because of the higher investments that were made in expanding the
sales structures. In a 12-month comparison on the costs side, the cost
savings only partially offset the increases in scaled wages and raw
materials as well as the rise in other procurement costs at the Group
level. Moreover, major expenses were incurred specifically because of the
costs of exhibiting at the biennial automechanika trade fair and the
one-time payments relating to the changes on the management board, which
were implemented at the end of July. Thus, EBIT (earnings before interest
and taxes) came in at EUR 7.0m, which was below the prior year level of EUR
10.6m. After adjusting for non-recurring and foreign currency effects, this
figure equaled EUR 8.6m and was therefore EUR 3.5m below the prior year
level (EUR 12.1m). When making comparisons to the prior year period, it
should be noted that a correction to earnings had to be carried out in the
third quarter pursuant to IAS 8 because of the prior year's accounting
errors in North America and that therefore EBIT had to be corrected
downward from EUR 11.7m to EUR 10.6m. The declining trend is also reflected
in the after-tax profits (EUR 2.4m, instead of EUR 4.6m) and in the
earnings per share (EUR 0.17, instead of EUR 0.33), which are significantly
below the prior year figures.
In addressing the current development, ManagementBoard Member, Michael
Busch, commented: 'Even though overall revenues in the first nine months
were slightly higher and therefore met expectations, we are not satisfied
with the earnings. In view of the higher costs and the still difficult
economic conditions, we will continue to pursue the strategic
prepositioning. In this regard, the positive trend in North America is
encouraging. We have a very good market and technology position, our
balance sheet is healthy, and we are generating high cash flows. We will
need to utilize these strengths more aggressively in order to reclaim our
old profitability'.
North American business further improved
The positive business growth of the previous two quarters continued in
North America. The restructuring is on schedule and has already led to
significant improvements in results. In Canada, the basis has been created
for further improving the earnings situation in the future. Due to the
global customer relations and the positive outlook, WashTec has decided to
retain its presence in North America. The prospects for strategic
cooperation remain under review.
Sound balance sheet and cash flow generation
Due to an improved capital management, net cash flow through the end of
September rose from EUR 13.5m to EUR 15.6m, and free cash flow climbed from
EUR 6.4m to EUR 12.0m. The net financial debt declined from EUR 24.4m at
the end of 2011 to EUR 15.0m. The equity ratio continued to climb, from
38.6% to 41.1%. The gearing ratio therefore fell from 0.32 to 0.19.
Outlook 2012: Slight revenue growth and proportional increase in adjusted
earnings
After the end of the first three quarters, WashTec is seeking for the
entire Group in fiscal year 2012 a slight revenue growth of 1 - 2%
(adjusted for exchange rate effects) with a proportional increase in
adjusted earnings. In this regard, the increasingly volatile market
environment and concomitant business development in Core Europe must be
taken into account.
The report on the first nine months of 2012 and additional information
about the Company can be found on its website: www.washtec.de.
Information on WashTec:
The WashTec Group has its registered offices in Augsburg, Germany, and is
the leading supplier of innovative solutions for the car wash business
worldwide. WashTec employs more than 1,600 persons and has its own
subsidiaries in the core markets of Europe, the United States and Canada as
well as in China and Australia. WashTec also has independent sales partners
in roughly 60 countries.
Contact:
Corporate Communications
WashTec AG
Argonstraße 7
86153 Augsburg
Tel.: +49 (0)821 - 55 84 - 0
Key financial information for the Group for the first nine months of the
year:
EURm, IFRS 9M 2012 9M 2011* Q3 2012 Q3 2011** Comparative figures adjusted pursuant to IAS 8
Revenues 217.1 212.7 74.5 72.3
EBITDA 14.4 18.3 4.3 7.3
EBIT 7.0 10.6 1.9 4.6
EBIT prior to correction pursuant - 11.7 - 4.3
to IAS 8
EBIT (adjusted) 8.6 12.1 3.4 5.5
EBIT margin (adjusted) 4.0% 5.7% 4.6% 7.6%
EBT 5.4 9.4 1.1 4.2
Net income 2.4 4.6 0.0 1.8
Earnings per share ** (in EUR) 0.17 0.33 0.00 0.13
Net cash flow 15.6 13.5
Free cash flow 12.0 6.4
EURm, IFRS Sep 30, Dec 31,
2012 2011
Balance sheet total 187.7 195.0
Equity 77.1 75.2Equity ratio 41.1 % 38.6 %
Net finance debt 15.0 24.4
Gearing ratio*** 0.19 0.32
Net current assets**** 73.3 76.3
Employees 1,663 1,668
**: Basis: average number of shares: 2012 = 13,971,515, 2011 = 13,976,970
***: 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
---------------------------------------------------------------------
05.11.2012 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
---------------------------------------------------------------------
191344 05.11.2012
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 05.11.2012 - 07:26 Uhr
Sprache: Deutsch
News-ID 199208
Anzahl Zeichen: 9269
contact information:
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 310 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"DGAP-News: WashTec AG: WashTec reports stable revenues in challenging environment"
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).
