DGAP-Adhoc: Kardex AG: Half Year Results 2014 Successful first half year for Kardex
Kardex AG / Key word(s): Half Year Results
21.08.2014 06:25
Release of an ad hoc announcement pursuant to Art. 53 KR
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Media information - Half Year Results 2014
Zurich, 21 August 2014
Successful first half year for Kardex
The Kardex Group achieved an encouraging overall result in the first half
of the 2014 financial year, benefiting from solid market conditions and,
above all, from profitable growth in its larger division, Kardex Remstar.
Kardex Mlog Division is currently working on cementing its turnaround. In
the following report, the year-on-year comparison of Group results refers
to continued operations, i.e. the revenues and results of Stow Division
(sold at the end of July 2013) have not been factored in. The detailed
figures can be found in the segment report contained in the Interim Report.
At EUR 153.0 million, the bookings reported by the Kardex Group were
generally on a par with the previous year's level (EUR 153.4 million),
while the posted revenues of EUR 147.2 million were 2.8% up on the figure
for the first half of 2013 (EUR 143.2 million). The operating result (EBIT)
increased by around 22% from EUR 9.9 million to EUR 12.1 million,
corresponding to an EBIT margin of 8.2% (6.9%). Net profit came to EUR 9.5
million (6.5% of revenues), 33.8% higher than the previous year's figure of
EUR 7.1 million. Return on capital employed exceeded the 30% mark.
Profitable growth momentum at Kardex Remstar
In the first half of the year, Kardex Remstar Division benefited from
efforts as of mid-2013 to step up capital expenditure and investments in
personnel resources. The 7.3% year-on-year rise in operating costs reflects
the targeted expansion of the sales organization, efforts to strengthen R&D
activities as well as non-capitalized IT project costs. The globally
reinforced sales team succeeded in increasing bookings from new business by
some 7% compared with the year-back period. Central Europe and Asia saw
above-average double-digit growth in bookings. A sizeable increase in new
orders was also reported by the service business. The newly established OEM
business won its first contracts. Overall, bookings were up by 5.8% to EUR
131.1 million (EUR 124.0 million), while the order backlog of EUR 88.6
million was close to 9% higher than in the same period one year ago (EUR
81.5 million). Net revenues grew by 4.6% to EUR 116.6 million with an
above-average 7.3% increase reported by the service business. Recording an
operating result of EUR 12.8 million and an EBIT margin of 11.0%, the
division again achieved a solid EBIT, once again an improvement of the
previous year's figure.
Kardex Mlog cements turnaround in first half
Kardex Mlog's objective for 2014 is to cement the turnaround achieved in
2013. In the first half, the division achieved a positive, albeit modest,
operating result of EUR 0.4 million (EUR 0.2 million) on revenues down 3.5%
at EUR 31 million. There is, however, a price to pay for taking a
consistently risk-aware approach to project delivery and for the company's
heightened focus on product and service orders: project bookings in the
first half were roughly 46% lower than in the previous year. The marked
upturn in bookings in the strategically important modernization business
(+21.5%) and in the service segment (+9.5%) was not sufficient to fully
offset this decrease. Total bookings were down almost 26% against the
previous year. Kardex Mlog launched a number of new and innovative products
in 2014, further strengthening its sound position in the market. Management
is confident that its new business model will soon yield the desired
results. However, proof still needs to be provided that this can be
accomplished on a sustainable basis.
Solid balance sheet despite high distributions
The Kardex Group has a sound balance sheet, is debt-free and has the
necessary flexibility to seize any opportunities arising in the market. The
Annual General Meeting of Kardex AG on 24 April approved the distribution
of CHF 2.65 per share (CHF 1.25 ordinary dividend, CHF 1.40 special
dividend from the sale of Stow Division), corresponding to a total pay-out
to the shareholders of EUR 16.8 million. This outflow of funds was offset
more than half by the free cash flow of EUR 9.4 million generated in the
first half of the year. Since the beginning of 2013, a total of around EUR
50 million has been channeled back to shareholders. Despite these
repayments, the Group's equity ratio was held at a comfortable 55.9% as at
the end of the period under review.
Cautiously optimistic outlook
The Kardex Group expects to turn in a solid performance on the back of
continuing solid market conditions. The favorable outlook for Kardex
Remstar is clouded solely by the sluggish volume of project bookings
reported by Kardex Mlog, which could temporarily curb the latter division's
positive performance. The Board of Directors is currently looking into a
number of smaller acquisitions to systematically strengthen Kardex Remstar.
A PDF version of the Interim Report, is available on our website at
http://www.kardex.com/index.php?id=2182&no_cache=1&L=0
Today, 21 August 2014, at 3:00 pm (CET), there will held an analyst
conference call with Executive Director Felix Thöni, Head of Finance and
Controlling Thomas Reist and Investor Relations Contact Officer Edwin van
der Geest to discuss the half-year results. The conference call is expected
to be held in English. The corresponding presentation is available at
http://www.kardex.com/index.php?id=56&no_cache=1&L=0. Please dial-in
approx. 5 minutes prior to the conference.
To take part, dial-in: +41 (0)22 592 73 12
Conference-ID: 4691685
Contact for media and investors:
Edwin van der Geest
investor-relations@kardex.com
Tel. +41(0) 44 419 44 79
Tel. +41 (0)79 330 55 22
Agenda
12 March 2015 Publication Annual Report 2014
Media and Analysts Conference year-end 2014
SIX Swiss Exchange, Zurich
23 April 2015 Annual General Meeting
SIX Swiss Exchange, Zurich
13 August 2015 Publication Interim Report 2015
Conference Call for Media and Analysts
Key figures (Continued Operations)
EUR millions
1.1. - 30.6. 2014 (%) 2013 (%) +/-%
Bookings 153.0 103.9% 153.4 107.1% -0.3%
Order backlog (30.6.) 110.0 74.7% 116.1 81.1% -5.3%
Net revenues 147.2 100.0% 143.2 100.0% 2.8%
Gross Profit 48.8 33.2% 44.4 31.0% 9.9%
OPEX 36.7 24.9% 34.5 24.1% 6.4%
Operating result (EBIT) 12.1 8.2% 9.9 6.9% 22.2%
EBITDA 15.1 10.3% 12.7 8.9% 18.9%
ROCE 31.1% 22.6% 37.6%
30.6.2014 31.12.2013 +/- %
Net working capital 55.4 54.4 1.8%
Net cash 69.8 77.0 -9.4%
Equity/Equity ratio 99.6 55.9% 106.9 55.9% -6.8%
Employees (FTE) 1'448 1'447 0.1%
Kardex Group - Corporate Profile
The Kardex Group is a global industry partner for intra-logistic solutions
and a leading supplier of automated storage solutions and material handling
systems. The Group consists of two entrepreneurially managed divisions,
Kardex Remstar and Kardex Mlog. Kardex Remstar develops, produces and
maintains shuttles and dynamic storage and retrieval systems and Kardex
Mlog offers integrated materials handling systems and automated high-bay
warehouses. The two divisions are partners for their customers over the
entire life cycle of a product or solution. This begins with the assessment
of customer requirements and continues through planning, realization and
maintenance of customer-specific systems. It ensures a high level of
availability combined with low total cost of ownership and operation.
Around 1 500 employees in over 30 countries work for the Kardex Group.
Disclaimer
This communication contains statements that constitute "forward-looking
statements". In this communication, such forward-looking statements
include, without limitation, statements relating to our financial
condition, results of operations and business and certain of our strategic
plans and objectives. Because these forward-looking statements are subject
to risks and uncertainties, actual future results may differ materially
from those expressed in or implied by the statements. Many of these risks
and uncertainties relate to factors which are beyond Kardex's ability to
control or estimate precisely, such as future market conditions, currency
fluctuations, the behavior of other market participants, the actions of
governmental regulators and other risk factors detailed in Kardex's past
and future filings and reports and in past and future filings, press
releases, reports and other information posted on Kardex Group companies'
websites. Readers are cautioned not to put undue reliance on
forward-looking statements, which speak only of the date of this
communication. Kardex disclaims any intention or obligation to update and
revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
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Language: English
Company: Kardex AG
Thurgauerstrasse 40
8050 Zürich
Switzerland
Phone: +41 (0)44 419 44 79
Fax:
E-mail: investor-relations@kardex.com
Internet: www.kardex.com
ISIN: CH0100837282
Valor: 100837282
Listed: Freiverkehr in Berlin, München, Stuttgart;
Frankfurt in Open Market ; SIX
End of Announcement EQS Group News-Service
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