DGAP-Adhoc: Kardex AG: Media information on the Half Year Closing 2013
22.08.2013 – 06:35
Kardex AG / Key word(s): Half Year Results 22.08.2013 06:29 Release of an ad hoc announcement pursuant to Art. 53 KR --------------------------------------------------------------------------- Media information to the half year closing 2013 Zurich, 22 August 2013 Kardex Group Kardex improves profitability in a challenging market environment The Kardex Group held its ground well in a challenging economic environment in the first half of the year. Following a weaker second half in 2012 and a sluggish start to 2013, at EUR 249.3 million, bookings were close to the year-back level (EUR 252.2 million). The order backlog of EUR 174.1 million at the end of June 2013 is 7% higher than 12 months previously and 12.4% up on the beginning of the year. The net revenues of EUR 227.3 million generated in the first half of 2013 were 5.2% lower than the sales reported in the strong first six months of 2012 (EUR 239.8 million). Owing to the quality of the orders, operational improvements and efficient cost management, a satisfactory result was nevertheless achieved. The operating result (EBIT) of EUR 14.6 million corresponds to a EBIT margin of 6.4% and is 18.7% higher than last year (EUR 12.3 million). Net profit for the first half stands at EUR 10.8 million (EUR 9.1 million) and earnings per share came in at EUR 1.40 (EUR 1.17). Return on capital employed reached (ROCE) 22.6%. Despite a payment of a dividend of EUR 7.4 million to shareholders, the Group's net cash position increased further to EUR 17.2 million (31.12.2012: EUR 12.4 million). This is thanks to the free cash flow of EUR 12.2 million (EUR 11.8 million). The Group's end-of-period equity ratio increased to 38.9% (31.12.2012: 36.2%). Kardex Remstar profits from efficiency improvements With sluggish demand in the industrial sector, Kardex Remstar suffered a decrease in revenues in most markets. Division revenues were down by 4.9% to EUR 111.5 million (EUR 117.3 million), reflecting the lower backlog of orders at the end of 2012 and delays in the execution of various more complex orders. On the other hand, bookings were up 1.7% to EUR 124.0 million (EUR 121.9 million). Accounting now for 28.9% of revenues, the service business continues to have a stabilizing impact. Kardex Remstar's operating result of EUR 10.9 million is on a par with the previous year's level and corresponds to an EBIT margin of 9.8%. In the first half of 2013, Kardex Remstar successfully launched a valuable addition to its range: a new vertical carousel for smaller loads. At the LOGIMAT, Europe's foremost intra-logistics trade fair, Kardex Remstar showed a further step in the division's development from a product-oriented company to a supplier of logistics solutions. Designed to further increase efficiency and enhance customer service, the spare parts centre for Europe commenced operations at the Bellheim site in July 2013. Kardex Stow holds margin Kardex Stow also fell just short of the revenues reported in the year-back period. At EUR 84.8 million, net revenues were down 4.4% year-on-year (EUR 88.7 million), while bookings were only 2.7% lower at EUR 96.7 million (EUR 99.4 million). The operating result of EUR 4.3 million was only a marginally lower than the previous year's figure (EUR 4.5 million), corresponding to an EBIT margin of 5.1%. As announced, over the past 15 months the Board of Directors of Kardex AG assessed all the strategic options for locking even more effectively into Kardex Stow's strong potential. Compared with its competitors, Kardex Stow is well placed in terms of costs and efficiency, thanks to the highly automated plant in Belgium, an efficient facility for labour-intensive tasks in the Czech Republic and an established site in Shanghai. The products enjoy a solid reputation in the market, which has also led to greater demand from global OEM customers. However, the high cost of transporting the final product has so far limited the division's geographic expansion. The sale (announced on 8 May 2013) to the French-based Averys Group will open up new prospects for Stow. The two companies are a good fit, both geographically and product-wise. Thanks to its wide distribution network and production sites in France, Germany, Belgium, Poland, the Czech Republic, Turkey and China, the combined group will become a leading European provider in the industry with annual sales of around EUR 350 million. Reorganization of Kardex Mlog showing initial successes Kardex Mlog reported a year-on-year 11.2% decrease in sales to EUR 31.7 million. At EUR 29.5 million, bookings were also just over 10% below the previous year's figure. However, the decrease was due not so much to market conditions as to the company's efforts to improve its strategic product mix and, above all, the risk management. Accordingly, the gross profit generated by new business is significantly higher than in the first six months of the previous year. Up 4.5% year-on-year, service sales now account for 18% (15%) of revenues. Kardex Mlog is well on the way to returning to sustainable profitability. While the operating result of EUR 0.2 million is still very modest, it is a considerably improvement to the previous half-year result (EUR -1.3 million). Having been brought up to full strength again during the first half year, the management team is now well equipped to further implement the turn-around strategy of Kardex Mlog. Further improvements in capital management Receivables decreased by EUR 9.5 million (-10.3%), reflecting not only lower revenues but also improved and more efficient receivables management. On the liabilities side, faster payment of suppliers' bills generated additional early payment discount income. The return on capital employed (ROCE) came to 22.6% and the return on equity to 26%. Planned use of cash inflow from the sale of Kardex Stow The sale of Kardex Stow to Averys was concluded following the go-ahead from the competition authorities. Kardex will post a book gain of approximately EUR 10 million on the sale, after adjusting for goodwill of some EUR 23.1 million already written down in accordance with Swiss GAAP FER. The Group will use the cash inflow of around EUR 76 million (including repayment of intercompany loans) from the sale primarily to invest in the accelerated organic expansion of Kardex Remstar and to repay the remaining bank debts of EUR 10 million. Furthermore, the Board of Directors plans to use around CHF 30 million for a special dividend of CHF 4.00 per share from capital contributions. This is roughly equivalent to the funds generated by the capital increase in September 2011, which are now to be channelled back to shareholders. Kardex AG will therefore be convening an extraordinary general meeting for 25 September 2013. Nevertheless, the Group's equity ratio will remain above 50% even after distribution of the special dividend. Division head and Executive Committee member Jos De Vuyst left the Group following the sale. The reduction in the Group's size also brought with it further streamlining at the holding company. Chief Financial Officer Gerhard Mahrle left Kardex AG in May, handing over his duties to Thomas Reist, Head of Finance and Controlling. We would like to thank these two Gentlemen and all employees of Kardex Stow most sincerely for their commitment to the Kardex Group and wish them all the best for the future. Cautiously optimistic outlook Thanks to the healthy order backlog, the Board of Directors and Executive Committee are cautiously optimistic about the remainder of the year. Kardex Remstar should be able to hold its EBIT margin at the previous year's level despite lower projected revenues. Kardex Mlog is expected to report a positive result for the year. Even if the economy stabilizes, the Group remains prepared to respond fast to renewed economic upheavals. For the full interim report, please go to our website www.kardex.com/nc/en/investor-relations/financial-reports/interim-report.h tml. Please note: Today, 22 August 2013, at 09:00 CEST, there will be an analyst conference call (conference ID: 4635392) with Executive Director Felix Thöni, Head of Finance and Controlling Thomas Reist and IR Contact Officer Edwin van der Geest to discuss the half-year results. To take part, call: +41 (0)22 592 73 12. Contact for media and investors: Edwin van der Geest Investor Relations investor-relations@kardex.com Tel. +41 44 419 44 79 Tel. +41 79 330 55 22 www.kardex.com Calendar of events: 12 September 2013 Company presentation at Investora Hotel Marriott Zurich 25 September 2013 Extraordinary General Meeting SIX Swiss Exchange, Zurich 13 March 2014 2013 year-end-closing, publication of 2013 Annual Report 2014 Media and analysts' conference 24 April 2014 2014 Annual General Meeting SIX Swiss Exchange, Zurich Key figures EUR millions 1 January to 30 June 2013 2012 +/-% Bookings 249.3 109.7% 252.2 105.2% -1.1% Order backlog (30 June) 174.1 76.6% 163.0 68.0% 6.8% Net revenues 227.3 100.0% 239.8 100.0% -5.2% Gross profit 59.8 26.3% 58.0 24.2% 3.1% OPEX 45.2 19.9% 45.7 19.1% -1.1% Operating result (EBIT) 14.6 6.4% 12.3 5.1% 18.7% EBITDA 19.2 8.4% 17.6 7.3% 9.1% Result for the period 10.8 4.8% 9.1 3.8% 18.7% Earnings per share (EUR) 1.40 1.17 19.8% Free cash flow 12.2 11.8 3.4% Return on capital employed (ROCE) 22.6% 14.8% 30.06.2013 31.12.2012 +/- % Net working capital 74.4 72.1 3.2% Net cash positions ¹ 17.2 12.4 38.7% Equity / Equity ratio 89.2 38.9% 85.4 36.2% 4.4% Employees (full-time equivalents) 2'111 2'062 2.4% 1) Cash less interest bearing debt 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. +++++ Additional features: Document: http://n.equitystory.com/c/fncls.ssp?u=FQIDDUHHFT Document title: Media information on the Half Year Closing 2013 22.08.2013 News transmitted by EQS Schweiz AG. The issuer is responsible for the contents of the release. EquityStory publishes regulatory releases, media releases on the capital market and press releases. The EquityStory Group distributes authentic and real-time financial news for over 1'300 listed companies. The Swiss news archive can be found at www.equitystory.ch/news --------------------------------------------------------------------------- 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: A0RMWK Listed: Freiverkehr in Berlin, München, Stuttgart; Frankfurt in Open Market ; SIX End of Announcement EQS Group News-Service ---------------------------------------------------------------------------