BAUER AG - Total Group revenues up 5.4 percent to EUR 1,163.2 million
- EBIT increases from EUR 12.6 million to EUR 38.3 million
- After-tax loss of EUR 5.0 million recorded
- After-tax profit forecast concretized
Schrobenhausen - For the first nine months of the current financial year, total Group revenues for BAUER Aktiengesellschaft are up 5.4 percent from EUR 1,103.9 million to EUR 1,163.2 million. EBIT increased substantially over this period, from EUR 12.6 million to EUR 38.3 million. A negative net result of EUR -5.0 million was recorded for the period (previous year: EUR -21.4 million) caused by special effects and market disruptions. These include problems with a dam project in the US, which have caused losses in parallel with substantially higher income tax expense. Year-to-year comparability is not meaningful due to special effects affecting the previous-year after-tax result as well. Solid orders in hand valued at EUR 780.8 million (previous year: EUR 836.7 million) will keep capacity utilization at a good level over the months ahead.
Business segments
With its three segments - Construction, Equipment and Resources - the BAUER Group operates a widely diversified business model and an international network.
Total Group revenues in the Construction segment decreased slightly by 1.7 percent to EUR 533.3 million. The reason was the completion of a number of large projects in the second and third quarters of last year. The effect of this is seen as well in orders in hand, which is somewhat lower at EUR 465.9 million, down 6.4 percent (previous year: EUR 497.7 million). Segment EBIT improved by EUR 2.3 million to EUR 20.3 million. A net profit of EUR 2.4 million was recorded for the period (previous year: EUR 4.0 million).
Total Group revenues in the Equipment segment increased 11.4 percent to EUR 507.5 million. A number of complex machines were delivered in the first nine months of the year, improving margins. Segment EBIT rose from EUR 13.3 million to EUR 25.9 million for a net profit for the period of EUR 4.3 million versus EUR -3.4 million in the previous year. Orders in hand totaling EUR 142.7 million declined slightly relative to the previous-year figure of EUR 162.1 million. The specialist foundation engineering equipment business remains subject to intense competition and short order lead times combined with immediate delivery expectations.
Total Group revenues for the Resources segment rose 9.6 percent to EUR 160.6 million, driven mainly by sales of well construction materials and environmental technology. Our expectations for the Exploration & Mining area were not meet. Order flow has been impacted by severe weakness in the mining markets particularly in Africa. Segment EBIT came to EUR -5.7 million (previous year:
EUR -19.7 million) and the net result to EUR -11.0 million (previous year: EUR -23.9 million). Orders in hand for the segment are solid, valued at EUR 172.2 million (previous year: EUR 176.9 million).
Outlook
The outlook is fundamentally positive for the construction industry due to high worldwide pent-up demand for infrastructure and buildings. Prof. Thomas Bauer, Chairman of the Management Board of BAUER Aktiengesellschaft: "We are able to compensate for the many disturbances in markets like Russia, the Ukraine and Iraq quite well through business in other countries and regions. Our new products and services are on a good track." The Group has sold one of its largest deep drilling rigs, and chances for additional sales are good. Environmental expertise is furthermore in demand.
BAUER AG has concretized its guidance for financial year 2014. The Group continues to estimate total Group revenues of around EUR 1.55 billion and EBIT of around EUR 75 million for the current financial year. The after-tax profit is likely to come in at the lower end of the estimated range of EUR 15 to 20 million. Due to the problems outlined, we will only be able to achieve the target through a non-operating one-time income.
The full interim report, including a detailed analysis of the individual segments and markets, can be found online at http://www.bauer.de.
About Bauer
Bauer is a provider of services, machinery and products for ground and groundwater. The Group markets its products and services all over the world. Its global spread allows it to remain largely unaffected by fluctuating business cycles.
The operations of the Group are divided into three segments: Construction, Equipment and Resources. The Construction segment carries out specialist foundation engineering work for complex excavation pits and foundations on major infrastructure and building projects all over the world, installing cut-off walls and carrying out ground improvement works as well as providing related project development services. Bauer's Equipment segment, a world market leader, offers a comprehensive range of construction machinery, equipment and tools for the specialist foundation engineering sector as well as for other underground drilling operations, such as for mines, water wells, geothermal energy sources, and oil and gas extraction. The Resources segment pools the Group's activities in the fields of water, energy, mineral resources and environmental technology.
Bauer profits greatly from the collaboration between its three separate segments, enabling the Group to position itself as an innovative, highly specialized provider of complete solutions and services for demanding projects on the specialist foundation engineering and related markets.
Founded in 1790, Bauer today generates around three quarters of its total revenues outside of Germany. Employing some 10,300 people, the Group's total revenues in 2013 were approximately EUR 1.5 billion (previous year: EUR 1.44 billion). BAUER Aktiengesellschaft has been listed on the official market of the Frankfurt Stock Exchange since July 4, 2006 (Prime Standard, ISIN DE0005168108).
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