EANS-News: BAUER Aktiengesellschaft
Professor Thomas Bauer comments on the
company's current situation at the Annual General Meeting
Schrobenhausen, June 25, 2009 - (euro adhoc) -
. Proposed dividend EUR 1.00 per share . Share buy-back scheme and restructuring of Supervisory Board remuneration on the agenda . Professor Thomas Bauer calls current forecasts "increasingly ambitious" and announces new forecasts to accompany the half-year interim report
Corporate news transmitted by euro adhoc. The issuer/originator is solely responsible for the content of this announcement.
companies
At today's Annual General Meeting of BAUER AG, Chairman of the Management Board Thomas Bauer tells shareholders that 2008 has been a record year for the company: "In a very bad year for the global economy as a whole, the BAUER Group has succeeded in maintaining its extraordinary growth of recent years." At the same time, his speech warns shareholders of more difficult times to come: "We now have to come to terms with the fact that our business is going to suffer from the effects of the crisis as others are doing. In the Equipment segment especially, the financial crisis is hitting us much harder than expected."
Whereas the company withstood the first quarter virtually unaffected by the crisis, cuts in capital investment by customers in the machinery business in the second quarter were more dramatic than expected. "Our forecasts are proving to be increasingly ambitious, and based on current estimates we will not quite achieve them, either in terms of revenues or earnings," Bauer reports. He announces that new, revised forecasts will be issued along with the upcoming half-year interim report, scheduled for publication on August 14, 2009. The company had previously forecast total Group revenues of around EUR 1.4 billion for 2009, with profit after tax back to around the 2007 level of EUR 74 million.
The Chairman reports that, in order to cut costs, the BAUER Group has released most of its temporary staff in Germany, and is also planning to introduce short- time working in its machinery manufacturing operations in the short to medium term. With regard to the company's core workforce, Professor Bauer makes a clear commitment: "As a long-standing family business, we have been through many critical periods together in the past. There are no plans at present for any redundancies."
The BAUER Group has this year for the first time detailed how it fulfils its responsibilities in respect of all interested parties in a Corporate Social Responsibility Report. Thomas Bauer stresses the BAUER Group's commitment to being an integral member of the community and good employer in all the locations and regions in which it operates.
Looking to the Group's long-term future, Professor Bauer is optimistic: "Our strategic direction is right. We are excellently positioned with our three segments Construction, Equipment and Resources, and we have a broad international base. That is a stabilizing factor in the current situation, and as soon as the economy picks up again we will profit from our strong competitive position."
Dividend policy adapted to market conditions
The Management Board and Supervisory Board propose to the shareholders that the dividend remain unchanged from last year, at EUR 1.00 per share. This will entail a total payout of EUR 17.1 million. Professor Bauer comments: "By employing this sustainable dividend policy we are treating our shareholders reasonably and fairly. At the same time, we are maintaining the liquidity of the business and creating a sound foundation for healthy ongoing growth."
Share buy-back scheme; Professor Bauer raises the prospect of minor acquisitions
Shareholders will also be asked to vote today on a share buy-back scheme. By acquiring its own shares, the company will provide itself with the necessary flexibility to respond to changing conditions in the difficult current economic climate. Thomas Bauer raises the prospect that the company may make some minor acquisitions in order to position itself more strongly in niche markets.
Supervisory Board remuneration: measured adjustment
The agenda also includes a resolution regarding adjustment of the historically very low levels of remuneration paid to the Supervisory Board members. Last September the company was listed on the MDAX share index. With a view to ensuring that members of the Supervisory Board are treated correctly, the resolution seeks to adjust their remuneration to benchmark levels in a measured way.
Factory tour at company headquarters
Following the Annual General Meeting held at the headquarters of BAUER AG in Schrobenhausen, the shareholders are invited to undertake a tour of the factory facilities. As part of the most extensive programme of capital investment in its history, the company has in the last two years spent more than EUR 65 million on improvements to its Bavarian home base.
The results of the vote and the presentation by the Chairman of the Management Board will be published immediately after the Annual General Meeting in the Investor Relations section of the company's website at www.bauer.de.
About Bauer
Bauer is a provider of services, machinery and ancillary products in the earth- working and groundwater fields. 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 all over the world, developing foundation and excavation projects as well as providing related construction services. In its Equipment segment, in which it is the world market leader, Bauer offers an extensive range of machinery, equipment and tools for specialist foundation engineering. The Resources segment encompasses the Group's operations in the exploitation of raw materials, in environmental technology, in geothermal drilling operations and also in equipment for wells (including pumps and drills, screens and casings).
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 more than two thirds of its total revenues outside of Germany. Employing some 8,600 people, the Group's total revenues in 2008 were EUR 1.53 billion (previous year: EUR 1.2 billion). BAUER Aktiengesellschaft has been listed on the official market of the Frankfurt Stock Exchange since July 4, 2006 (Prime Standard, ISIN DE0005168108).
end of announcement euro adhoc
Further inquiry note:
Bettina Mestenhauser
Head of Investor Relations
Telefon: +49(0)8252 97 1918
E-Mail: investor.relations@bauer.de
Branche: Construction & Property
ISIN: DE0005168108
WKN: 516810
Index: SDAX, CDAX, Classic All Share, Prime All Share
Börsen: Frankfurt / regulated dealing/prime standard
Berlin / free trade
Hamburg / free trade
Stuttgart / free trade
Düsseldorf / free trade
München / free trade