PRESS RELEASE
Muehlhan AG releases 2011 figures? Sales revenues of EUR 172 million at upper end of projected range
? Company once again recognizes goodwill impairment and bad debt losses
Hamburg, 30 March 2012 - Muehlhan AG (Entry Standard; ISIN DE000A0KD0F7) reported an increase in sales of around 4% to EUR 172 million (2010: EUR 165 million), accompanied by a EUR 1.2 million increase in EBIT (earnings before income and taxes) from EUR -2.5 million in 2010 to EUR -1.3 million in 2011. The net loss for the year totaled EUR -3.9 million (2010: EUR -4.4 million). Extraordinary, non-cash adjustments to goodwill, property values and various receivables alone in the USA and the Middle East resulted in charges against income of around EUR 6 million, thereby preventing the company from achieving positive earnings in what from an operating standpoint was a successful fiscal year 2011.
Once again, Europe was the primary driver of sales revenues,
with this region contributing EUR 135 million, or 80% of all
sales; at the same time, Muehlhan generated around 8% more
sales than in the previous year (2010: EUR 125 million). Even
more significant was the almost 60% increase in EBIT, from
EUR 6 million in 2010 to EUR 9.5 million in 2011. In North
America, sales revenues remained steady, at just under EUR 20
million. Nevertheless, due to the aforementioned
non-recurring charges, Muehlhan still had to report a loss of
EUR -3.1 million in the USA in 2011 (2010: EUR -5.2 million).
The same applies to the Asian businesses: the negative EBIT
reported in 2010 decreased even further, with Muehlhan
posting a EUR -2.5 million loss on a 19% decrease in sales
(2011: EUR 16 million).
As expected, the Ship Newbuilding activities reported a drop
in sales from EUR 56 million in fiscal year 2010 to just EUR
36 million in 2011. Basically, all market players experienced
a significant decline in the volume of business in this
segment, as a large part of this industry has shifted to
Asia. Despite having a presence in the region, the protracted
start-up phase for shipbuilding activities at shipyard
customers' sites in the Persian Gulf, combined with the
associated start-up costs, prevented us from posting an
improvement in earnings (2011 EBIT: EUR -3.6 million,
compared with profits of EUR 1.9 million in 2010).
Thanks to our reputation for quality and on-time delivery,
Muehlhan AG managed to attract new Ship Repair orders despite
the market's underlying weakness. At EUR 33.7 million, sales
revenues were EUR 4.7 million, or 16%, higher than in the
previous year (2010: EUR 29.0 million). At just under EUR
0.6 million, the contribution to earnings was also positive
(2010: EUR 1.0 million).
In the Industry business, the U.S. bridge sector in
particular turned in an impressive performance, with
increases in both sales and earnings in fiscal year 2011, in
contrast to the project losses during the previous year.
Despite the weak fire-proofing business in the Middle East,
the Industry Services reported steady sales revenues of EUR
27 million and a positive EBIT of EUR 1.4 million (2010: EUR
-
1.2 million).
The Energy business, which encompasses projects for customers
in the oil and gas industry, the petrochemical industry and
renewable energies, increased sales revenues by more than
25%, or EUR
8.1 million, in 2011. All in all, this segment achieved EUR
40 million of sales and generated nearly EUR
0.7 million of EBIT during the year under review, compared
with a loss of more than EUR -6.1 million the previous
year.
In the Other Services sector, scaffolding and steel
construction work generated very positive sales revenues of
EUR 34.4 million in 2011 (2010: EUR 21.5 million). The 60%
growth rate here was the highest increase reported by any
business division. With income of EUR 4.9 million around 11%
higher than in 2010, the earnings trend was also
positive.
As we had predicted and announced in the interim report for
the third quarter of 2011, at the end of the year, the
company was no longer able to satisfy all of the covenants
for the EUR 20 million bond and the working capital
financing. In the meantime, the company has reached an
agreement with its financing partners on new terms for
continued financing. The agreement guarantees future
cooperation by establishing bond covenants that take into
account the requirements of the project business and which,
as in the past, will not negatively affect the company's
ability to conduct business as it sees fit. In return, the
company had to accept a 75 basis point increase in the bond
coupon to 8.77%.
For additional information on fiscal year 2011 and the
outlook for 2012, please consult the 2011 Annual
Report published today.
The Company's most important financial highlights are
contained in the following table:
(in EUR million) | Fiscal year 2011 | Fiscal year 2010 |
Sales | 172 | 165 |
EBITDA | 6.4 | 7.0 |
EBIT | -1.3 | -2.5 |
Net loss for the year | -3.9 | -4.4 |
Cash flow | 6.1 | 5.9 |
Fixed assets | 45 | 46 |
Equity | 57 | 61 |
Equity ratio (in %) | 51 | 57 |
Balance sheet total | 112 | 108 |
Employees (annual average) | 2,131 | 2,281 |
Worldwide, the Muehlhan Group is a reliable partner in industrial services and high-quality surface protection.
As one of the few full-service providers, we offer our customers a broad range of services designed to meet the exacting quality standards expected in professional industrial services. Our customers benefit from our exceptional organizational skills, the technical expertise that differentiates us from our competitors and our more than 130 years of experience.
Our operations are divided into five business fields: Ship Newbuilding, Ship Repair, Energy, Industry and Other Services. With our workforce of
2,100 employees at around 40 locations worldwide, we generated sales revenues of EUR 172 million in 2011.
We intend to use this stable foundation to further expand our business in the coming years and to continue moving our company forward through proximity to our customers in the global market.
More information at www.muehlhan.com
Press Contact: Ties Kaiser, Muehlhan AG; Tel: +49 40 75271-156; Email: kaiser@muehlhan.comdistributed by | This press release was issued by Muehlhan AG and was initially posted at http://www.muehlhan.com/upload/dokumente/MYAG_PM_GB_2011_EN.pdf . It was distributed, unedited and unaltered, by noodls on 2012-03-30 12:54:51 PM. The issuer is solely responsible for the accuracy of the information contained therein. |