Rectification of press release: Bauers half-year earnings increase faster than revenues
Please replace the press release published this morning by this one. At the bottom of page 1 an error has been corrected: The operating result (EBIT) was slightly negative at minus 0.9 million, compared with an operating profit of 0.5 million in the prior-year pe-riod. Improvements in all key figures Very good order backlog Significant increase in earnings anticipated for full-year 2006
ots-CorporateNews transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
Schrobenhausen, 22 August 2006. Construction and engineering company BAUER Aktienge-sellschaft, which has been listed in official trading (Prime Standard) on the Frankfurt Stock Ex-change since 4 July 2006, performed well in the first half of 2006, continuing its very successful trend of 2005. The company improved nearly all of its key performance indicators compared with the first half of last year. Bauer profited from a buoyant global construction industry and above-average growth in both engineering and construction. Bauer increased its first-half output volume compared with the prior-year period by roughly 25% to approximately EUR454 million (H1 2005: approx. 364 million). "We are very satisfied with the ex-tremely positive business developments in the first half of 2006. We have thus delivered repeated evidence of our profitable growth," stated Executive Board Chairman Prof. Thomas Bauer. For reasons of weather, output volume in the construction industry during the first few months of the year is generally lower than in the summer months. Therefore, earnings are usually negative in the first half of the year. Bauers first-half operating profit (EBIT) for the Construction business segment was slightly negative this year - as a result of the domestic construction business - but the Engineering business segment posted excellent earnings. In total, Bauer improved its operat-ing profit (EBIT) by 89% - a far higher rate than for output volume - to nearly EUR19 million (H1 2005: nearly EUR10 million). Bauer posted a strong second-quarter EBIT of EUR15 million (H1 2005: approx. EUR12 million), compared with approx. EUR3.5 million in the first quarter (Q1 2005: operating loss of approx. EUR2 million). Bauer also achieved a strong increase in its net profit for the period, from EUR0.5 million in the first half of last year to EUR5.9 million in the period under review. Bauer increased the proportion of total output volume generated outside Germany to more than 73%, compared with approx. 66% in the prior-year period. Bauers ongoing internationalisation helped to compensate for the negative earnings in the Construction business segment caused by the still weak construction industry in Germany. Bauer is thus largely independent of developments in individual geographical markets. The BAUER group significantly increased its order backlog. At the end of June 2006, it had risen to EUR427 million, 24% higher than the prior-year level of EUR346 million. The order backlog in the Engineering business segment nearly doubled. Before consolidation, the Construction business segment increased its first-half output volume by approx. 13% to approx. EUR256 million (H1 2005: approx. EUR228 million). The operating result (EBIT) was slightly negative at minus EUR0.9 million, compared with an operating profit of EUR0.5 mil-lion in the prior-year period. Construction posted a significant loss in Germany due to the con-tinuation of weak market prices. The special foundations business in Germany posted a result similar to that for H1 2005, despite the bad weather in the first quarter of this year. Business out-side Germany grew significantly, however, particularly for the subsidiaries in North America. Bauers Engineering business segment performed extremely well in the first half of 2006. Output volume increased sharply to approx. EUR212 million (H1 2005: approx. EUR146 million), while EBIT more than doubled to nearly EUR20 million (H1 2005: approx. EUR9 million). As a result of the strong demand for Bauers machinery, the order backlog increased in nearly all areas of the business segment. The companys numerous innovations such as the new anchor-drilling rig or the Quat-troCutter attracted great interest among customers. The increased demand for machinery and equipment is to be satisfied by further expanding production capacities in Germany and abroad - in Russia for example.
Outlook Worldwide market growth is expected to continue this year. Above-average increases in demand for services and machinery are anticipated in the field of special foundation engineering. This is partially due to the steady growth in infrastructure projects and construction projects in increas-ingly cramped inner-city situations, which require increasingly complex foundation work. As a result, all areas of the BAUER group have very good order books. Against this backdrop and the positive course of business so far this year, Bauer expects an increase in total output volume of well over 10% in full-year 2006 and a corresponding increase in earnings.
Key figures for the first half of 2006 (IFRS)
H1 2005 H1 2006 Change
EUR million EUR million
Total output volume*, thereof: 363.5 453.9 +25%
- Germany 124.2 121.6 - 2 %
- International 239.3 332.3 + 39 %
- Construction 227.7 256.4 + 13 %
- Engineering 146.1 212.1 + 45 %
- Consolidation / other - 10.3 - 14.6 + 42 %
Consolidated output volume 352.0 430.2 +22%
Order backlog 345.7 426.8 +24%
EBITDA 31.6 42.2 +34%
Operating profit (EBIT), thereof: 9.8 18.5 +89%
- Construction 0.5 -0.9 -
- Engineering 9.3 19.8 + 113 %
- Consolidation / other 0 - 0.4 -
Net profit for the period** 0.5 5.9 -
Earnings per share in EUR*** 0 0.38 -
Number of employees 5,116 5,494 +7%Key figures for the second quarter of 2006 (IFRS)
Q2 2005 Q2 2006 Change
EUR million EUR million
Sales revenues 186.8 208.9 +12%
Operating profit(EBIT) 12.1 15.0 +24%
Net profit for the period** 5.1 6.2 +22%
Earnings per share (diluted
and basic) in EUR*** 0.33 0.41 +24%~ * The total output volume shown here includes not only the output volume shown in the consolidated income state-ment, but also output volume contributions from associated companies and output volume from non-consolidated subsidiaries and consortiums.
** Before minority interest. *** Calculated on the basis of the profits to which the shareholders are entitled with 14,784,000 shares (less minority interest of 449,160 shares until 30 June 2006), taking into consideration the 1:6 share split decided upon by the companys shareholders meeting on 28 April 2006 and rounded up/down to full cents.
About Bauer Bauer is a global provider of construction services for special foundation engineering and associated work, and is an internationally leading supplier of machinery, equipment and tools for special foundation engineering and related ser-vices. The companys activities are divided into the two business segments of Construction and Engineering. The Construc-tion segment includes special foundation engineering and related activities in the fields of environmental technology, building restoration, bridge construction and project development. Bauers Engineering segment offers a comprehen-sive range of machinery, equipment and tools for special foundation engineering. The BAUER group has a global presence, supplying its services and products through sales companies and networks. The BAUER group benefits from cooperation and synergy between its two business segments, enabling it to offer innovative and highly specialised complete solutions for demanding special foundation work including all of the required services and special machinery. Founded over 200 years ago, The BAUER group today generates two thirds of its total output volume outside Ger-many. In 2005, the group posted a total output volume of EUR824 million (2004: EUR664 million) with a workforce of 5,000 persons.
end of announcement euro adhoc 22.08.2006 12:32:21
Contact:
Bettina Mestenhauser
Head of Corporate Communications
BAUER Aktiengesellschaft
Wittelsbacherstraße 5
86529 Schrobenhausen
Tel.: +49 8252 97 1918
Fax: +49 8252 97 2900
Mobile: +49 171 755 9210
E-mail: Bettina.Mestenhauser@bauer.de
Branche: Construction & Property
ISIN: DE0005168108
WKN: 516810
Börsen: Frankfurter Wertpapierbörse / admission applied: official
dealing