EANS-News: BAUER Aktiengesellschaft BAUER AG third-quarter report expresses
confidence in opportunities for growth from new orders
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Company Information/quarterly report/9-month report
Subtitle: Total Group revenues up 4.8 percent to EUR 1,008.9 million.
Orders in hand up by more than 25 percent to EUR 740.0 million.
After-tax profit of EUR 14.2 million (previous year: EUR 21.0 million) hit by
disturbances and delays in construction business.
Adjusted full-year forecast: Total Group revenues of around EUR 1.35 billion;
EBIT of around EUR 80 million; and after-tax profit of just over EUR 30 million.
5 to 10 percent revenue growth forecast for 2012.
Schrobenhausen (euro adhoc) - After having adjusted its full-year earnings
forecast on October 31st, international construction and machinery manufacturing
concern BAUER Aktiengesellschaft has today published its third-quarter interim
report. Although its revenues and earnings in the current financial year are
below expectations, the Group is confident about its future prospects. Chairman
of the Management Board of BAUER AG Professor Thomas Bauer comments: "Based on
our high levels of orders in hand, we expect to achieve annual growth rates in
total Group revenues of between 5 and 10 percent in 2012 and subsequent years.
And that does not include the opportunities arising from the potential
remediation project on the Mosul Dam in northern Iraq." In early November, BAUER
Group company BAUER Spezialtiefbau GmbH signed a letter of understanding with
the Iraqi government indicating that a contract will be awarded subject to
agreement of further contractual details. With a total value of EUR 1.9 billion,
and extending over a scheduled period of some six years, this would represent
the biggest single contract in the company's history.
In the period to September 30, 2011 the BAUER Group increased its total Group
revenues by 4.8 percent to EUR 1,008.9 million. Earnings before interest and
taxes (EBIT) fell from EUR 55.8 million to EUR 51.5 million. After-tax profit
of EUR 14.2 million - against a previous year comparative of EUR 21.0 million -
was less than planned.
In the Construction segment, delays beyond the company's control to the start
of some major construction projects, as well as a number of impediments to the
execution of projects, suppressed both revenues and earnings. In addition, loss
of revenues and earnings in the crisis regions of the Middle East - especially
in Egypt - had a negative impact on the Group's performance. Total Group
revenues in the Construction segment totalled EUR 415.7 million, 11.4 percent
down against the previous year's comparative (EUR 469.3 million). Segment EBIT
fell from EUR 22.5 million to EUR 9.4 million. Orders in hand as per the end of
September were at a high level, totalling EUR 423.8 million (previous year: EUR
326.2 million). Key projects include dam remediation on Lake Okeechobee in
Florida, a major new contract acquired in September for work on the Center Hill
Dam in Tennessee, and specialist foundation engineering works forming part of
major infrastructure projects in Hong Kong, Panama and Malaysia.
The Equipment segment increased its total Group revenues in the reporting
period by 18.1 percent to EUR 487.1 million (previous year: EUR 412.3 million).
Segment EBIT rose from EUR 27.9 million to EUR 34.8 million. Orders in hand are
up slightly on the same time last year, rising 8.2 percent to EUR 136.9 million.
All in all, demand and unit sales have been somewhat more sluggish than
expected. A further step into a new product area was marked in October by the
presentation of the second large-size deep drilling rig model at Group
headquarters in Schrobenhausen. The rig, designed to drill down to depths of
more than 5,000 metres, attracted great interest from visiting industry experts.
The performance of the Group's Resources segment, which focuses on future-
oriented products and services in the fields of water, energy, mineral
resources and environmental technology, continued to develop positively. The
segment improved its total Group revenues in the first three quarters of the
year by 30.6 percent to EUR 162.7 million (previous year: EUR 124.6 million).
Segment EBIT of EUR 8.2 million was a substantial EUR 3.3 million up on the
previous year comparative. The segment has excellent levels of orders in hand
totalling EUR 179.4 million - well up on the previous year's figure of EUR
135.8 million.
Outlook
Orders in hand within the Group at the end of the first nine months had risen
by 25.8 percent to EUR 740.0 million. "The trend in orders indicates chances of
significantly better performance over the coming year," Professor Thomas Bauer
states. "Although we have been severely hit by the numerous disturbances this
year, we are confident about the future, because the problems that have occurred
will have little impact on us beyond the current financial year."
For the full year 2011, the Group expects to generate total Group revenues of
around EUR 1.35 billion, EBIT of around EUR 80 million, and an after-tax profit
of just over EUR 30 million.
Our full Interim 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 January - September 2011 (IFRS)
| |Jan-Sep 2010 |Jan-Sep 2011 |Change |
| |in EUR million |in EUR million | |
|Total Group revenues |962.6 |1,008.9 |+4.8 % |
|of which | | | |
|- Germany |250.0 |263.6 |+5.4 % |
|- International |712.6 |745.3 |+4.6 % |
|of which | | | |
|- Construction |469.3 |415.7 |-11.4 % |
|- Equipment |412.3 |487.1 |+18.1 % |
|- Resources |124.6 |162.7 |+30.6 % |
|- Other/Consol. |-43.6 |-56.6 |n/a |
|Consolidated revenues |928.9 |978.3 |+5.3 % |
|Sales revenues |844.4 |874.9 |+3.6 % |
|Orders received |1,042.1 |1,134.0 |+8.8 % |
|Orders in hand |588.5 |740.0 |+25.8 % |
|EBITDA |110.2 |112.5 |+2.1 % |
|EBITDA margin (as % of sales |13.0 % |12.9 % |n/a |
|revenues) | | | |
|EBIT |55.8 |51.5 |-7.7 % |
|EBIT margin (as % of sales |6.6 % |5.9 % |n/a |
|revenues) | | | |
|Net profit or loss |21.0 |14.2 |-32.6 % |
|Shareholders´ equity |419.2 |443.3 |+5.8 % |
|Equity ratio |30.5 % |29.5 % |n/a |
|Earnings per share in EUR |1.01 |0.70 |-30.7 % |
|Employees (on average over the |8,962 |9,603 |+7.2 % |
|year) | | | |
Further inquiry note:
Bettina Erhart / Christopher Wolf
Investor Relations
Telefon: +49(0)8252 97 1918
E-Mail: investor.relations@bauer.de
end of announcement euro adhoc
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company: BAUER Aktiengesellschaft
BAUER-Straße 1
D-86529 Schrobenhausen
phone: +49 (0)8252-97-1918
FAX: +49 (0)8252-97-2900
mail: investor.relations@bauer.de
WWW: http://www.bauer.de
sector: Construction & Property
ISIN: DE0005168108
indexes: SDAX, CDAX, Classic All Share, Prime All Share
stockmarkets: regulated dealing/prime standard: Frankfurt, free trade: Berlin,
Hamburg, Stuttgart, Düsseldorf, München
language: English