EANS-News: BAUER Aktiengesellschaft
BAUER AG ends year fully to plan and
looking to return to growth in 2011
Total Group revenues up 2.2 percent to EUR 1,304 million Profit after tax of EUR 39.8 million (previous year: EUR 42.0 million) to plan Orders received up 26.7 percent to EUR 1,410.0 million (previous year: EUR 1,113.1 million) Forecast for 2011: Total Group revenues up to EUR 1.4 billion and profit after tax up to over EUR 45 million Proposed dividend stable at 0.60 EUR per share
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annual report/Annual Reports/annual result/Financial Figures/Balance Sheet
Subtitle: Total Group revenues up 2.2 percent to EUR 1,304 million Profit after tax of EUR 39.8 million (previous year: EUR 42.0 million) to plan Orders received up 26.7 percent to EUR 1,410.0 million (previous year: EUR 1,113.1 million) Forecast for 2011: Total Group revenues up to EUR 1.4 billion and profit after tax up to over EUR 45 million Proposed dividend stable at 0.60 EUR per share
Schrobenhausen/Munich (euro adhoc) - International construction and machinery manufacturing concern BAUER Aktiengesellschaft today published its financial results for 2010. At the press conference in Munich, Chairman of the Management Board Professor Thomas Bauer stated that he was satisfied with the company's revenue and earnings performance, which had been as expected.
Total Group revenues increased slightly, by 2.2 percent from EUR 1,276 billion to EUR 1,304 billion. Earnings before interest and taxes (EBIT) went up by 4.7 percent to EUR 88.4 million (previous year: EUR 84.4 million). Profit after tax was EUR 39.8 million (previous year: EUR 42.0 million). The company has thus succeeded in stabilizing its performance following significant declines in the previous year. "The construction industry was one of the last sectors to achieve turnaround following the financial crisis, and we have made good use of opportunities as they have arisen on global markets," Professor Bauer commented.
The Management Board and Supervisory Board will propose to the Annual General Meeting that a stable dividend of EUR 0.60 per share be paid. This would represent a total payout of EUR 10.3 million, corresponding to around 30 percent of net earnings.
Business segments
The Group's strategy is focused on its well established international network and on its organization into three segments: Construction, Equipment and Resources.
Construction: Sales growth and positive trend
The Construction segment has proved to be a stabilizing element through the ongoing financial crisis. Specialist foundation engineering projects in the USA and in the fast-growing markets of the Middle and Far East enabled it largely to balance out the declines in the Equipment segment resulting from the weak economic conditions. The segment's total Group revenues increased by 8.0 percent to EUR 615.4 million (previous year: EUR 570.0 million). Segment EBIT rose by 11.9 percent from EUR 25.7 million to EUR 28.8 million.
Equipment: Markets in the Far East particularly successful
The Equipment segment was affected by customers' reluctance to invest in new machinery. While demand for standard small and medium-sized equipment continued to fall, Bauer was able to profit from its leading position on the large specialist machinery market. The most successful selling markets are in the Far East, where major construction projects are being driven on strongly. As expected, the segment's total Group revenues fell by 4.4 percent against the previous year's level to EUR 581.7 million (previous year: EUR 608.5 million). Segment EBIT fell by 5.9 percent to EUR 48.3 million (previous year: EUR 51.3 million).
Resources: Products and services for future growth markets in demand
The Resources segment increased its total Group revenues slightly over the previous year, by 2.0 percent to EUR 177.7 million (previous year: EUR 174.3 million). Segment EBIT increased substantially from EUR 6.0 million to EUR 8.1 million. Opportunities for growth are coming primarily from major long-term water supply and water treatment projects in Jordan and Oman respectively. As a result, the recently established segment, which supplies a wide range of products and services relating to water, energy, mineral resources and environmental technology, is well on the way to becoming a key strategic pillar of the Group's business.
Orders in hand
A sign of discernible recovery on markets is the rising number of orders being received: up 26.7 percent against the previous year to EUR 1,410.0 million (previous year: EUR 1,113.1 million). Orders in hand grew by a very positive 20.8 percent, reaching EUR 614.9 million by the year-end (previous year: EUR 508.9 million) and indicating the prospect of increased revenues in the current financial year.
Professor Thomas Bauer states: "The biggest opportunity for our business is its international network, operating in all fields. Our global presence enables us to identify wide-ranging opportunities on local markets. We expect all three segments to show a positive trend again over the coming years."
The future-oriented business of the Resources segment will profit from the rapidly increasing worldwide demand for energy and mineral resources, while the Construction and Equipment segments will gain from major construction projects, especially in the Middle and Far East.
Outlook
Professor Bauer is confident with regard to the Group's future prospects: "Based on current estimates, we believe we can grow between five and ten percent in 2011 and 2012. This year we are looking to achieve total Group revenues of EUR 1.4 billion, and increase our profit after tax above EUR 45 million."
It is likely that trends in the industry this year will return to the normal patterns of earlier years, with the first quarter showing a loss which is balanced out over the subsequent quarters.
Our full Annual Report, including a detailed analysis of the individual segments and markets, can be found on our website at http://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 and related fields of activity. 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 around three quarters of its total revenues outside of Germany. Employing some 9,100 people, the Group's total revenues in 2010 were EUR 1.30 billion (previous year: EUR 1.28 billion). BAUER Aktiengesellschaft has been listed on the official market of the Frankfurt Stock Exchange since July 4, 2006 (Prime Standard, ISIN DE0005168108).
GROUP KEY FIGURES 2010 (IFRS)
| |2009 |2010 |Change | | |in EUR million |in EUR million | | |Total Group revenues* |1,275.8 |1,304.0 |2.2 % | |of which | | | | |- Germany* |361.4 |339.1 |-6.2 % | |- International |914.4 |964.9 |5.5 % | |of which | | | | |- Construction* |570.0 |615.4 |8.0 % | |- Equipment* |608.5 |581.7 |-4.4 % | |- Resources* |174.3 |177.7 |2.0 % | |- Other/Consolidation* |-77.0 |-70.8 |n/a | |Consolidated revenues* |1,226.0 |1,255.6 |2.4 % | |Sales revenues |1,096.5 |1,131.7 |3.2 % | |Orders received* |1,113.1 |1,410.0 |26.7 % | |Orders in hand |508.9 |614.9 |20.8 % | |(as per December of current | | | | |year) | | | | |EBITDA* |157.4 |165.5 |5.2 % | |EBITDA margin (as % of sales |14.4 % |14.6 % |n/a | |revenues)* | | | | |EBIT |84.4 |88.4 |4.7 % | |EBIT margin (as % of sales |7.7 % |7.8 % |n/a | |revenues) | | | | |Net profit or loss |42.0 |39.8 |-5.3 % | |Shareholders' equity |401.9 |443.9 |10.4 % | |Equity ratio in % |33.9 % |33.2 % |n/a | |Earnings per share in EUR |2.28 |2.04 |-10.5 % | |Employees (on average over the |8,872 |9,094 |2.5 % | |year) | | | |
At variance with the consolidated revenues presented in the Group income statement, the total Group revenues presented here include portions of revenues from associated companies as well as revenues of non-consolidated subsidiaries and joint ventures.
* Previous year figures adjusted
end of announcement euro adhoc --------------------------------------------------------------------------------
Contact:
Bettina Erhart / Christopher Wolf
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