EANS-News: Kapsch TrafficCom AG Kapsch initiated a set of measures to secure
its growth strategy in the first quarter of 2014/15
--------------------------------------------------------------------------------
Corporate news transmitted by euro adhoc. The issuer/originator is solely
responsible for the content of this announcement.
--------------------------------------------------------------------------------
quarterly report
· Existing projects continue to progress well, new installation projects fail to
materialize
· Revenue and EBIT below the previous year, profit for the period improved
· Comprehensive set of measures to improve profitability initiated
· Growth strategy maintained with project and technology potential
______________________________________________________________________________
|2014/15 Q1: 1 | 2013/14 Q1 | +/- % | 2014/15 Q1 |
|April - 30 June | | | |
|2014______________|___________________|___________________|___________________|
|Revenues (in | 121.4| -3 %| 118.0|
|million_EUR)______|___________________|___________________|___________________|
|EBIT (in million | 3.7| -83 %| 0.6|
|EUR)______________|___________________|___________________|___________________|
|Profit for the | -1.0| -| |
|period (in million| | | 0.3|
|EUR)______________|___________________|___________________|___________________|
Vienna, 20 August 2014 - Kapsch TrafficCom AG (ISIN AT000KAPSCH9), listed on the
Vienna Stock Exchange in the prime market segment, reports positive project
progress in the first quarter of fiscal year 2014/15 with continued success in
the ongoing installation and operation projects. However, the forecast market
growth still has not materialized, and no new projects arose. In particular, no
invitations to tender for major toll projects in Europe are in the immediate
vicinity. Kapsch TrafficCom has therefore initiated a set of measures for
adapting its growth-oriented organizational structure to this situation.
The Kapsch TrafficCom Group continued to enjoy positive developments in its
projects during the first quarter of 2014/15. In North America, progress was
made in the installation of the toll system in Texas, the first system
integrated by Kapsch TrafficCom in this region. In July, the company received a
second system order in the U.S.A. for an electronic toll collection system on
the New York State Thruway. Kapsch TrafficCom sees great potential for the
future in this first system order from a toll agency of the E-ZPass Group.
The first expansion stage of the nationwide electronic toll collection system in
Belarus has been in operation for one year. At the beginning of August 2014, the
system was further increased to 1,189 km. The continued expansion will also lead
to another rise in registered vehicles.
The nationwide electronic toll collection system in Poland has been in operation
for three years. With 2,653 kilometers of toll roads and 1.6 million on-board
units (OBUs), it is now the largest toll system of the Kapsch TrafficCom Group.
By the year 2018, it should be expanded to 7,000 km.
The toll system in the South African Gauteng province also went into operation
at the beginning of December 2013. The payment rate remains very low, but the
system operation has reached the break-even point in the meantime. However, the
project in its entirety is still negative for Kapsch TrafficCom. The company
plans to work with the customer to improve the profitability.
The invitation to tender for the toll system in Russia has been postponed
several times, most recently until 22 September. The realization of the project
currently appears uncertain. In view of the disappointed reaction on the capital
market, Kapsch TrafficCom emphasizes that this is only one of the group's
potential future projects.
Subtitle: Financial position
Within this ambivalent environment, Kapsch TrafficCom Group brought in revenue
of EUR 118.0 million during the first quarter of fiscal year 2014/15 after EUR
121.4 million in the same quarter of the previous year, a decline of 2.8 %. The
operating result (EBIT) fell from EUR 3.7 million to EUR 0.6 million. This weak
result reflects the lack of additional installation projects. At the same time,
the company bears the high costs of maintaining international structures and
resources and also invests strategically in research and development. A view of
the operating projects in isolation clearly shows positive development by the
Kapsch TrafficCom Group.
The profit for the period, which was previously negative due to currency
exchange effects is once again positive during the quarter under report at EUR
0.3 million. The key balance sheet figures were also noticeably improved thanks
to the ongoing repayment of the financing for the project in Belarus. The net
working capital and net debt are significantly below the comparison values of
the previous year, and the free cash flow is once again positive at EUR 32.4
million after EUR -37.2 million in the previous year.
Subtitle: Growth strategy
Kapsch TrafficCom continues to expect growth in the market for intelligent
transportation systems (ITS) as well as associated changes in the market
structure and composition. The toll collection market is currently developing
more slowly than predicted, and expected major projects have not materialized.
During the quarter under report, the company therefore initiated a comprehensive
set of measures to reduce the costs associated with maintaining complex
structures and resources in line with the current market development. Kapsch
TrafficCom continues to strive for a two-digit EBIT margin in order to focus
strongly on continuing its growth strategy.
Cost reductions were achieved already in the previous year, and these efforts
are now being intensified. This applies in particular to costs that have arisen
due to growth related to the broad ITS portfolio and the group's increasingly
global position. The resources maintained for potential projects and investments
will also be reevaluated even as care is taken not to restrict the project and
technology potential. At the same time, the planning and implementation of the
strategic growth paths will be intensified.
From an operational perspective, Kapsch TrafficCom will concertedly continue its
existing projects during the current fiscal year, and the company also expects
expansions in existing systems as well as some new projects. Kapsch TrafficCom
eagerly looks forward to the outcome of the invitation to tender in Russia. In
addition, the company is actively contacting parties potentially interested in
toll systems and expects this approach to also bear fruit.
Subtitle: Notification
The report on the first quarter of fiscal year 2014/15 can be found under
www.kapsch.net/ktc/investor_relations/reports/download/Quarterly-reports/2014-
15/KTC_IR_Report_FY15-Q1?lang=en-US.
Kapsch TrafficCom is a provider of intelligent transportation systems (ITS) in
the application fields of road user charging, urban access and parking, road
safety enforcement, commercial vehicle operations, electronic vehicle
registration, traffic management and V2X cooperative systems. Kapsch TrafficCom
covers with end-to-end solutions the entire value creation chain of its
customers as a one-stop shop, from components and design to the installation and
operation of systems. The solutions of Kapsch TrafficCom help to finance
infrastructure, to increase traffic safety, to optimize traffic flow, and to
reduce environmental pollution from traffic. The core business is to design,
build and operate electronic toll collection systems for multi-lane free flow
traffic.
References in 44 countries on all continents make Kapsch TrafficCom a recognized
supplier of electronic toll collection worldwide. As part of the Kapsch Group, a
family-owned Austrian technology group founded in 1892, Kapsch TrafficCom,
headquartered in Vienna, Austria, has subsidiaries and representative offices in
33 countries, has been listed on the Vienna Stock Exchange (KTCG) since 2007,
and generated with more than 3,300 employees revenues of EUR 487.0 million in
fiscal year 2013/14.
For additional information: www.kapsch.net and www.kapschtraffic.com
Follow us on Twitter: twitter.com/kapschnet.
Press Contact:
Alf Netek
Chief Marketing Officer
Kapsch AG
Am Europlatz 2, 1120 Vienna, Austria
Phone: +43 50 811 1700
E-mail: alf.netek@kapsch.net
Investor Contact:
Marcus Handl
Investor Relations Officer
Kapsch TrafficCom AG
Am Europlatz 2, 1120 Vienna, Austria
Phone: +43 50 811 1120
E-mail: ir.kapschtraffic@kapsch.net
Further inquiry note:
Mag. Marcus Handl
Investor Relations Officer
Kapsch TrafficCom AG
Am Europlatz 2
1120 Wien, Österreich
Tel.: +43 50.811 1120
E-Mail: {ir.kapschtraffic@kapsch.net}
[HYPERLINK: mailto:ir.kapschtraffic@kapsch.net]
Pressekontakt:
Mag. Alf Netek
Chief Marketing Officer
Kapsch AG
Am Europlatz 2, 1120 Wien, Österreich
Tel.: +43 50811 1700
E-Mail: alf.netek@kapsch.net
end of announcement euro adhoc
--------------------------------------------------------------------------------
company: Kapsch TrafficCom AG
Am Europlatz 2
A-1121 Wien
phone: +43 1 50811 1122
FAX: +43 1 50811 99 1122
mail: ir.kapschtraffic@kapsch.net
WWW: www.kapschtraffic.com
sector: Technology
ISIN: AT000KAPSCH9
indexes: Prime Market
stockmarkets: official market: Wien
language: English