26.08.2004 – 09:02

VA Technologie AG

euro adhoc: VA Technologie AG
Quarterly or Semiannual Financial Statements
Half-year result 2004 characterised by reorientation (E)

  Disclosure announcement transmitted by euro adhoc.
  The issuer is responsible for the content of this announcement.

• Additional restructuring-measures bring losses in 2004
• Managing Board change at VA TECH Transmission & Distribution
• Order intake and sales clearly up 
• Dynamic development in growth markets outside Europe 
• WABAG redimensioning proceeds as planned
• A sustainable, positive result situation anticipated for 2005 
• Extraordinary General Shareholders-Meeting to be held on September
21, in order to approve capital increase

The first half-year 2004 was characterised by generally positive
developments in our markets, which resulted in an 11% increase in
order intake and record order backlog of EUR 4.8 billion.
To guarantee a lasting turnaround in the Group is the completion of
restructuring within the Group, like that at the transformer
production locations, and the redimensioning of Water Systems the
priority for 2004. To achieve the rapid implementation of these
measures together with the Supervisory Board, the Managing Board will
draw up an additional restructuring programme during the second half
of 2004. This will contain a drastic reduction in transformer
capacity involving costs of EUR 65-70 m, of which around 50% will be
cash effective. Consequently, we exspect a negative net result for
2004 to the same amount.
The planned measures constitute an investment in the development of
prosperity in the coming years. From 2005 onwards, a positive result
situation on a durable basis can be anticipated, with a profit for
the period in 2005 of more than EUR 50 m.
Due to differences of opinion concerning the extent of restructuring
in T&D, Klaus Brenner, who up to now headed T&D will leave the group
by mutual agreement. When this takes place member of the VA
TECH-Board Christian Habegger will take charge of T&D in addition to
his current poste as head of the Power Generation Division. 
The Group’s order intake was raised by 11% in the first half-year to
EUR 2,463 m, which resulted in an 11% rise in order backlog to a new
record high of EUR 4,821 m. In the first half of 2004, VA TECH sales
were raised by 13% to EUR 1,940 m. The group’s half year result for
2004 is characterised by three highly profitable divisions (VAI, VA
TECH HYDRO, VA TECH ELIN EBG) and problems in WABAG and T&D. Earnings
before interest, taxes and goodwill amortisation (EBITA) in the first
six months improved to EUR 64.3 m (HY 1 2003: EUR 42.8 m).
The VA TECH Group’s financial result for the first six months of the
year altered from minus EUR 48.5 m to minus EUR 63.2 m due to
increased interest on advance payments. Earnings before taxes (EBT)
were up from minus EUR 25.4 m to minus EUR 19.8 m in the first half
of 2004. Following the deduction of taxes and minority interests, the
result for the period improved from minus EUR 23.4 m in 2003 to minus
EUR 18.6 m in 2004. 
Net liquidity was maintained at the high level of EUR 163 m. Group
free cash flow amounted to minus EUR 83 m in the first half of 2004
(HY 1 2003: minus EUR 27 m).
A major step towards Water Systems restructuring and turn-around was
taken with the sale of the domestic business of WABAG Germany and
WABAG France. This divestment affected five WABAG locations (Leipzig,
Ratingen, Butzbach, Bayreuth and Paris) with a work force of 157 and
sales revenues in 2003 of EUR 70 m. Details concerning the
transaction will be given following the granting of approval by the
German anti-trust authority.
In the second half of 2004, the general improvement in the climate of
investment within the capital goods industry should continue to
benefit the VA TECH Group. Positive impulses are tangible in both the
metallurgical technology and energy branches. Therefore, even after
the sale of some operative units, it is anticipated that order intake
and sales in 2004 will remain steady at a high level. A rise in the
VA TECH equity ratio and the turnaround in 2005 offer an ideal basis
for a profitable and success-oriented future for the Group.
At an extraordinary General Shareholder’s Meeting of VA Technologie
AG, to be held on September 21, an authorised capital of up to 3.75
million shares will be sought (up to 25% of share capital).
Realisation is planned for the current year in line with market
conditions.

end of announcement        euro adhoc 26.08.2004

Further inquiry note:

Bettina Pepek
Press Officer

phone: 43 1 89100-3400
fax: 43 1 89100-4103
bettina.pepek@vatech.at

Branche: Technology
ISIN: AT0000937453
WKN: 093745
Index: ATX, ATX Prime, WBI
Börsen: Wiener Börse AG / official dealing
Berliner Wertpapierbörse / free trade
Bayerische Börse / free trade