DGAP-News: Tognum with improved order intake in first quarter-forecast for the year confirmed
(firmenpresse) - Tognum AG / Quarter Results
07.05.2010 07:30
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Tognum with improved order intake in first quarter-forecast for the year
confirmed
* Order intake up 7.1% to EUR696.5 million
* Revenues as expected down 20.6% to EUR509.4 million
* Adjusted EBIT margin at 8.4% (Q1 2009: 9.9%)
* Net financial debt reduced to EUR86.2 million
* Outlook for 2010 confirmed
Key figures for the Tognum Group
In EUR millionFriedrichshafen, 7 May 2010. The specialist for propulsion and power
(except *) Q1 2009 Q1 2010 Change
Order intake 650.6 696.5 7.1%
Revenues 641.8 509.4 -20.6%
EBIT (adjusted) 63.8 42.8 -32.9%
EBIT margin (adjusted) 9.9% 8.4% -1.5pp
Net profit (adjusted) 38.2 22.3 -41.6%
Earnings per share* (adjusted) in EUR 0.29 0.17 -41.4%
Gross profit margin 25.8% 28.7% 2.9pp
Equity ratio 27.6% 28.2% 0.6pp
Free cash flow 62.2 123.9 99.2%
Net financial debt 192.2 86.2 -55.2%
Employees* 8,971 8,793 -2.0%
solutions Tognum has completed the first three months of the current
financial year in line with expectations and confirms its forecast for the
full year.
'Despite the modest quarterly revenues as expected, we managed to achieve
an adjusted EBIT margin of 8.4%,' said Volker Heuer, chairman of the
executive board of Tognum AG. The company continues to expect an adjusted
EBIT margin (adjusted return on sales) of 6 to 9%, with revenues of EUR2.3
to 2.5 billion. In the medium term, Tognum intends to grow faster than the
market and achieve a double-digit return on sales. 'We are currently
observing positive signs, primarily in our after sales business, in the oil
and gas industry and in distributed energy systems,' Heuer added.
Adjusted EBIT margin stable, despite declining revenues
The order intake in the first three months of 2010 at Tognum was up 7.1% to
EUR696.5 million (Q1 2009: EUR650.6 million). Although Tognum considers
this increase to be an encouraging sign that demand is beginning to
recover, it is still not an indication of steady growth. Revenues were down
20.6% compared with the same quarter last year to EUR509.4 million (Q1
2009: EUR641.8 million). If the figures for the Rotorion operations that
were sold as at 31 October 2009 are excluded, the decline would have been
15.8%.
Adjusted earnings before interest and tax (adjusted EBIT) at the end of the
three-month period amounted to EUR42.8 million and was thus a third below
last year's level of EUR63.8 million. This resulted primarily from the drop
in revenues and increased R&D expenditure. Tognum nevertheless succeeded in
achieving an adjusted EBIT margin of 8.4% (Q1 2009: 9.9%). The company is
thus within its target corridor for the full year.
Profitability supported by after sales business
Adjusted gross profit at EUR146.4 million dropped 11.6% below last year's
level (Q1 2009: EUR165.7 million). In spite of this, the adjusted gross
profit margin continued to improve, increasing to 28.7% in the first
quarter of 2010 compared with 25.8% in the same period last year. There was
a positive impact resulting primarily from the improved revenue mix, which
was due to the relatively high contribution from after sales business and
the sale of the propeller shaft unit in 2009.
Adjusted net income in the first quarter of 2010 amounted to EUR22.3
million (Q1 2009: EUR38.2 million). This results in adjusted earnings per
share of EUR0.17 (Q1 2009: EUR0.29).
Targeted investments in research and development
Tognum increased its expenditure for research and development in the first
quarter of 2010 as planned by 24.1% to EUR37.6 million. 'By investing in
the new Series 1600 engines and in the succeeding generations of the Series
2000 and 4000 engines, our intention is to increase our competitive edge by
offering leading high-tech products,' Heuer explained. 'For this reason, we
see the tougher emission regulation as an opportunity for us.'
Sound financing structure
The free cash flow, which consists of cash flow from our operating
activities and investing activities, doubled in the first quarter of 2010
to EUR123.9 million (Q1 2009: EUR62.2 million). This was due primarily to
reduced inventory levels and receivables, which resulted in a reduction in
net working capital.
Net financial debt was reduced significantly once again compared with the
end of 2009 from 192.2 to EUR86.2 million. The company's equity ratio
improved from 27.6% as at 31 December 2009 to 28.2% as at 31 March 2010.
This is the highest level since the IPO in mid-2007.
Revenue and earnings performance in the segments
Revenue performance in all segments-Engines, Onsite Energy&Components and
Distribution-declined. In contrast, After Sales reported positive
performance in all three segments to provide significant support.
The Engines segment generated revenues in the first quarter of 2010 of
EUR362.6 million (Q1 2009: EUR450.5 million), 19.5% below last year's
level. In the marine application area, the decline in revenues affected our
business in yachts and commercial ships, in addition to our government and
project business. Our business in industrial engines also declined,
although business in rail vehicle applications was again at the level
reported last year. In the defence application area, major projects came to
an end as scheduled, with the result that revenues in this area were also
down. The adjusted EBIT margin for the Engines segment amounted to 10.7%
(Q1 2009: 11.1%). The order intake at EUR434.6 million was at the same
level reported last year (Q1 2009: EUR436.4 million). In the first quarter
of 2010, revenues from the mining and oil and gas industries continued to
be affected by the drop in price levels on the international raw materials
markets last year. With raw material prices now rising again, the
willingness to invest is also increasing, which now leads to an increase in
order intake.
In the Onsite Energy&Components segment, revenues were down 23.7% to
EUR143.9 million (Q1 2009: EUR188.5 million). If the figures for the
Rotorion propeller shaft operations are excluded, the decline would only
have been 5.0%. The Onsite Energy Diesel Systems&Engines reported
declines-due primarily to the reduced demand for diesel systems. In
contrast, business performance with genset manufacturers was positive. The
adjusted EBIT margin for the Onsite Energy&Components segment was 3.6%
(Q1 2009: 7.1%). The order intake was up 24.1% in the first quarter of 2010
to EUR220.6 million (Q1 2009: EUR177.7 million). Signs of growth are
reported from Onsite Energy Gas&Fuel Cell Systems and Injection Systems.
Revenues in the Distribution segment declined to EUR92.9 million (Q1 2009:
EUR97.7 million), while the adjusted EBIT margin increased further to 11.2%
(Q1 2009: 8.0%). This was due primarily to the excellent earnings situation
in Asia.
- End -
The complete interim report for the first quarter 2010 is available for
download from the company's website at www.tognum.com in the 'Investors'
section.
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
07.05.2010 07:30 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Medienarchiv atwww.dgap-medientreff.deandwww.dgap.de---------------------------------------------------------------------------
Language: English
Company: Tognum AG
Maybachplatz 1
88045 Friedrichshafen
Deutschland
Phone: +49 (0)7541 90 3318
Fax: +49 (0)7541 90 90 3318
E-mail: ir(at)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, Düsseldorf, Hannover, München, Hamburg, Stuttgart
End of News DGAP News-Service
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Datum: 07.05.2010 - 07:30 Uhr
Sprache: Deutsch
News-ID 20434
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