DGAP-News: Muehlhan AG below expectations in third quarter 2010
(firmenpresse) - Muehlhan AG / Key word(s): Quarter Results
15.11.2010 07:39
---------------------------------------------------------------------------
PRESS RELEASE
Muehlhan fails to meet expectations in third quarter of 2010
* Project losses in the USA and weak wind-energy business impact results
* Business in European region more stable
* Bridge-renovation business in the USA will be shut down
Hamburg, 15 November 2010 - In the third quarter of 2010, Muehlhan AG
(Entry Standard; ISIN DE000A0KD0F7) reported sales of EUR 40.6 million and
earnings before interest and taxes (EBIT) of EUR 0.5 million, lower than
its own projections. For the year to date, it had sales of EUR 125.8
million (12.4% lower than the prior-year period's figure of EUR 143.5
million) and EBIT of EUR 4.3 million (29.0% lower than the EUR 6.0 million
reported for the prior-year period). Net income for the first nine months
totaled EUR 2.0 million, EUR 0.7 million (around 25%) lower than last year.
This was attributable to continued weakness in market trends in the
maritime sector, losses on a U.S. bridge-renovation project and persistent
underutilization in the wind-energy sector.
Sales in Europe dropped (by 14.7%) from EUR 109.8 million last year to EUR
93.7 million. However, this development was significantly slower in the
third quarter than in the first half of 2010. The decrease was down to
minus 9.3%, compared to the minus 17.8% of the previous year. In addition
to the expected decline in the Ship Newbuilding segment, the continued
weakness in our Ship Repair business likewise had a negative impact on
sales. Moreover, both sales and earnings in the wind energy segment were
considerably lower than expected, due both to the halting recovery in
financing for wind farms and technical problems causing delays in the
expansion of the Offshore business. These developments caused a major
Danish customer to file for bankruptcy protection at the end of October.
Currently, a restructuring plan is being implemented to which all its
suppliers will be required to contribute a portion. To date, the cost to
Muehlhan is still uncertain. Of the EUR 1.9 million of total receivables,
bad debt losses of EUR 0.4 million were recognized in the third quarter.
Because of a one-time charge last year (of EUR 2.7 million due to a
shipyard insolvency), Muehlhan's EBIT of EUR 7.0 million this year was
higher than last year's figure (EUR 6.0 million) despite lower sales.
Although Asia, including the Middle East, also was compelled to post lower
sales than last year (EUR 18.0 million compared with EUR 19.8 million last
year) due to the expected substantial decline in our business in Dubai,
even here we managed to achieve higher EBIT than last year (EUR 1.6
million, vs. EUR 1.4 million last year). This trend was attributable to
higher margins in the fireproofing segment, stable business in Qatar and a
stronger Ship Newbuilding segment in China.
While our businesses in the USA posted EUR 13.9 million of sales, slightly
higher than the prior-year figure of EUR 12.9 million, the operating loss
(EBIT) increased from EUR 0.7 million in the previous year to EUR - 2.8
million. The loss figure includes a charge of EUR 2.1 million related to
the renovation work on the Lewis&Clark Bridge in Washington State (USA).
That project was completed at the beginning of November. This year's
higher loss was also attributable to the fact that the prior-year figure
was boosted by the inclusion of non-recurring damage awards from two
lawsuits totaling EUR 1.8 million.
Outlook
Business developments during the year to date have shown that, since the
beginning of the year, our expectations have remained partially
unsatisfied. In particular, the growth we were hoping for in the U.S.
bridge-reno-vation business did not materialize. Besides considerable
losses on the Lewis&Clark Bridge project, significant delays in public
tenders for public works due to financing difficulties caused by the
continuing economic crisis in the USA have led to decreased sales and
earnings. As a result, the Executive Board has decided to shut down the
bridge-renovation business in the USA.
The trend in the wind-energy segment also is lagging behind expectations.
Here, of course, we are still counting on the long-awaited recovery.
On account of this trend, the Company can no longer maintain its previous
forecast (sales of EUR 190 million and EBIT of EUR 7 million). Given the
uncertainty in the wind-energy segment over the short term and the possible
need for a write-down, the Executive Board is unable to issue a reliable
forecast of full-year results.
In the fourth quarter, which in any case is usually the weakest quarter, we
expect at least a break-even EBIT in the operating business on sales of
around EUR 38 million. However, it remains to be seen whether the EBIT of
EUR 4.3 million gained so far can be maintained overall.
Key figures:
in kEUR 9 months of 2010 9 months of 2009 3rd quarter of 2010 3rd
quarter of 2009
Sales 125,767 143,450 40,570 43,188
EBITDA1 9,173 11,312 2,127 2,879
EBIT2 4,283 6,033 515 1,131
EBT3 3,207 4,512 126 1,007
Earnings per share (EUR) 0.11 0.14 -0.01 0.03
Consolidated earnings after minority interests 2,010 2,706 -145 602
Cash flow 8,540 11,131 1,654 2,418
Investments 3,208 4,841 665 1,199
Depreciation and amortization 4,890 5,279 1,612 1,748
in kEUR 30 September 2010 31 December 2009
Balance sheet total 114,757 115,565
Fixed assets4 48,139 54,126
Equity 67,235 66,320
Number of employees5 2,316 2,282
1 EBITDA: Earnings before interest, taxes, depreciation and amortization
2 EBIT: Operating income (Earnings before interest and taxes)
3 EBT: Earnings before taxes
4 Fixed assets: Total of non-current assets less deferred tax assets
5 Average number of employees during the entire reporting period
About Muehlhan:
The Muehlhan Group is a global specialist in high-quality surface
protection and industrial services. Our four business segments - Ship
Newbuilding, Ship Repair, Oil&Gas Offshore and Industry Services - enable
us to provide a broad range of professional services to our maritime and
industrial markets. The excellent quality of our service, our high degree
of organization, our technical expertise and almost 130 years of experience
are what set us apart.
With our workforce of around 2,300 employees at 40 locations worldwide, we
generated sales revenues of EUR 190.8 million in 2009. In the years to
come, we will utilize our leadership position as a stable foundation for
further expanding our business.
Press contact: Ties Kaiser, Muehlhan AG; Tel: +49 40 75271 -156 10 640,
e-mail: kaiser(at)muehlhan.com
15.11.2010 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: Muehlhan AG
Schlinckstrasse 3
21107 Hamburg
Deutschland
Phone: +49 40 75271 0
Fax: +49 40 75271 130
E-mail: investorrelations(at)muehlhan.com
Internet: www.muehlhan.com
ISIN: DE000A0KD0F7
WKN: A0KD0F
Listed: Freiverkehr in Hamburg, München, Berlin, Stuttgart; Entry
Standard in Frankfurt
End of Announcement DGAP News-Service
---------------------------------------------------------------------------
Datum: 15.11.2010 - 07:39 Uhr
Sprache: Deutsch
News-ID 32602
Anzahl Zeichen: 0
contact information:
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 218 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"DGAP-News: Muehlhan AG below expectations in third quarter 2010"
steht unter der journalistisch-redaktionellen Verantwortung von
Muehlhan AG (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
