Greiffenberger : press release, august 25, 2014

Press Release by the Greiffenberger AG (WKN 589 730 / ISIN DE0005897300) 

Greiffenberger AG - Greiffenberger Group generates € 75.7 m turnover in the first six months of 2014

• Growth slows in June 2014 - Q2 2014 sales of € 38.0 m (previous year: € 39.5 m)
• First six months of 2014 - EBITDA of € 4.0 m and EBIT of € 0.7 m

Marktredwitz and Augsburg, August 25, 2014 - The Greiffenberger Group generated sales of € 75.7 m in the first six months of 2014, with June in particular coming in below expectations. This result confirms the interim figures of August 5. The 1.6 % decline in turnover was primarily due to weakened economic growth in the second quarter of 2014, with demand in Germany down. However, sales in the USA, China and France increased noticeably. Compared on a quarterly basis, sales in the first quarter of 2014 stood at € 37.7 m, slightly up therefore on the previous year's € 37.4 m. Nevertheless, the expected momentum was restrained in the following quarter, and turnover declined on revenues that stood at € 38.0 m compared to € 39.5 m in the previous year.

"The fluctuations of the second quarter, as revealed by extraordinarily differing ordering schedules on the part of our customers, resulted in lower incoming orders on the one hand, but also turnover growth elsewhere. Moreover, we sensed the effects of the weakening of the German economy particularly in June. Nevertheless, our incoming orders in the first six months continued to be in excess of turnover, and we see demand for our products and technologies being fundamentally solid. For the future this means that we need to act even more independently with regard to individual segments, regions and customers, so that we can better offset these types of fluctuations", comments Stefan Greiffenberger, CEO of Greiffenberger AG.

The sales effect that occurred at short notice at the end of the second quarter 2014 could not yet be countered by the appropriate cost reduction measures during the reporting period. This is also shown in the result for the first six months. The EBITDA declined from € 6.8 m to € 4.0 m, and the EBIT from € 3.5 m to € 0.7 m.

For the rest of the year the Greiffenberger Group is confirming the forecast as detailed on August 5. For the second half of the year the Greiffenberger Group is expecting a higher turnover than in the first six months, and therefore from the full year's perspective revenues in the range of € 152 - 157 m. Expectations for the operating result for the second half of the year are also correspondingly in excess of the results of the first six months. The Greiffenberger Group is planning for an EBITDA for the full-year 2014 of between € 9 - 11 m, and an EBIT in the range of € 2 - 4 m.

Comments Stefan Greiffenberger: "The indicators for the entire Group to return to our growth curve are overall good, because with a solid and strong competitive position we will continue to serve attractive, high-margin niche markets, and steadily expand our penetration of these markets. The economic forecasts are also suggesting continued stable development in Germany and Europe, as well as for the global economy, even if slightly dampened."

The Greiffenberger-Group in the 1st half year 2014

* Based on an average number of shares of 4,839,450 and 5,000,733 outstanding in the first six months of 2013 and 2014 respectively

On the Greiffenberger AG:

Registered in Marktredwitz, Greiffenberger AG is a family-led industrial holding with 1,088 employees. With an export ratio of 66 % it operates successfully worldwide in technologically demanding niche areas of three growth markets:

• Drive Technology: efficient drive technology for companies that develop market-leading solutions, particularly
industrial applications, e-mobility and renewable energies.
• Metal Band Saw Blades & Precision Strip Steel: the finest quality for demanding industrial applications
• Pipeline Renovation Technology: state-of-the-art trenchless technology and pipe surface protection technology

The company's strategic focus is on continuing to develop sector expertise and advancing environmental technology in areas that include pipeline renovation technology, biomass heating and wind power. Organic growth will be generated by increasingly internationalizing sales and procurement, and complemented optionally by acquisitions of companies. The company has been listed since 1986 (WKN 5897300, ISIN DE0005897300, ticker symbol GRF).

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