DGAP-News: WashTec AG: WashTec improves revenues in an environment that is still difficult
(firmenpresse) - DGAP-News: WashTec AG / Key word(s): Quarter Results
WashTec AG: WashTec improves revenues in an environment that is still
difficult
07.05.2012 / 07:31
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Press release
WashTec improves revenues in an environment that is still difficult
- Revenue growth of approximately 5% to EUR 66.7m in the first quarter of
2012
- Almost stable EBIT despite substantial costs triggered by wage hikes
and price increases
- Balance sheet improved - net finance debt reduced to EUR 18.5m, equity
ratio climbs to 39.2%
- Validation of the guidance for 2012: slight revenue increase and
significant improvement in adjusted earnings compared to 2011
Augsburg, May 7, 2012 - The WashTec Group - the leading supplier of
innovative solutions for the car wash business worldwide - has been able to
make a good start of fiscal year 2012 despite the ongoing difficult
environment. For example, consolidated revenues rose in the first quarter
of 2012 by 5.2% to EUR 66.7m (Q1 2011: EUR 63.4m); a trend that may be
attributed to a high order backlog existing at the end of 2011. Overall,
the winter months of January through March are traditionally the weakest of
the year. This fact is also reflected in the earnings performance.
Accordingly, as was expected, EBIT was only slightly positive at EUR 0.1m
and was therefore at approximately the same level as the prior year. As in
the same period of 2011, the Group would have earned EUR 0.4m after
adjusting for foreign exchange effects. WashTec was able to achieve this
result even though wage hikes, raw material price increases and other
procurement cost escalations led to a significant increase in operating
costs.
In addressing the Group's business performance, CFO Houman Khorram
commented: 'Given the difficult environment that persists, we should be
quite satisfied with our first quarter performance, even though there are
no grounds for euphoria. Nevertheless, we are confident that we can achieve
our annual objectives of slightly increasing revenues and significantly
improving our adjusted earnings, particularly as the communicated strategic
repositioning of the Group progresses further'.
With respect to the segments, WashTec was able during the reporting quarter
to improve revenues slightly in Core Europe, while improving them
significantly in North America and in the Asia/Pacific region. In Emerging
Europe, business continues to grow in view of the ever-increasing order
backlogs, although revenues did in fact decline during the first months of
the year due to invoicing practices. With respect to revenues by product,
the continued strong growth in the chemical business should be particularly
highlighted. The earnings development within the segments proceeded as
expected; in North America, smaller losses were once again reported as a
result of the adjustments made in the previous year. As was the case during
the same period of the previous year, the Group reported slightly negative
pre-tax and after-tax earnings and earnings per share. As is typical during
any given year, however, the Group expects a strong return to profits in
the next quarter.
Strategic repositioning proceeding on schedule
The Company's strategic repositioning, which was announced in early 2012,
is proceeding further. In Europe, most of the relevant projects have
already started up. However, with respect to relocating some of the
production to the Czech Republic, an agreement has not yet been reached
with the Works Council. In North America, the measures taken to cut costs
and restructure business activities proceeded according to plan. Under the
emergency program launched at the end of 2011, substantial costs were cut
by optimizing all structures and processes. Despite the extensive
restructuring program, the Company continued to fully discharge the
obligations it owed to the customers. The performance in the first quarter
of 2012 confirms that even in a market environment that remains
challenging, the Company has been able - already in 2012 - to significantly
reduce losses compared to 2011. Efforts are still being made to narrow and
focus the business activities. Potential strategic alliances also remain
under review. The approaches already taken in this connection were not,
however, satisfactory.
Balance sheet significantly improved
Thanks to some noteworthy prepayments from customers and quarter-related
changes in other net current assets, WashTec was able to very significantly
increase its net cash flow from EUR 0.8m to EUR 7.4m in the first quarter
of 2012. On the other hand, net current assets declined from EUR 76.4m to
EUR 71.6m. Thanks to the positive cash flow, the Company was once again
able to reduce its net finance debt (net bank debt plus long-term and
short-term finance leasing debt) from EUR 24.4m (end of 2011) to EUR 18.5m.
The equity ratio climbed from 38.6% to 39.2%, and the gearing dropped from
0.32 to 0.24. Thus, WashTec commands a very solid balance sheet.
Outlook for 2012 confirmed: slight increase in revenues and significant
increase in adjusted earnings
Historically, the first quarter of any given fiscal year is the WashTec
Group's weakest quarter. The Company is therefore expecting an improvement
in business primarily during the second half of the year. The Company is
still holding to the goals it set for all of 2012. Based on the current
volatile market environment in Europe and the special situation in North
America, a forecast for 2012 is still marked by corresponding
uncertainties, however:
Specifically, the annual forecast for the segments is as follows:
- Core Europe: slight revenue growth with slightly better earnings;
- North America: revenue decline of 3 - 7% and significant (50% - 70%)
reduction in operating losses; the current assumption is that the North
American business will be continued and that the restructuring program
will be implemented;
- Emerging Europe: double-digit revenue growth with commensurate earnings
performance;
- Asia/Pacific: slight revenue and earnings improvement.
On this basis, WashTec is aiming for slight revenue growth of 1 - 2% for
the entire Group in 2012 together with a significant increase in adjusted
earnings. Additional special charges triggered by potential strategic
alliances in North America remain a possibility at this time.
The report on the first quarter of 2012 and additional information about
the Company can be found on our website: www.washtec.de.
Information on WashTec:
The WashTec Group has its registered offices in Augsburg, Germany, and is
the leading supplier of innovative solutions for the car wash business
worldwide. WashTec employs more than 1,600 persons and has its own
subsidiaries in the core markets of Europe, the United States and Canada as
well as in China and Australia. WashTec also has independent sales partners
in roughly 60 countries.
Contact:
Corporate Communications
WashTec AG
Argonstrasse 7
86153 Augsburg
Tel.: +49 (0) 821 - 55 84 - 0
Key first quarter financial information for the Group:
EUR m, IFRS Q1 2012 Q1 2011
Revenues 66.7 63.4
EBITDA 2.5 2.7
EBIT 0.1 0.2
EBIT (adjusted) 0.4 0.4
EBIT-margin (adjusted)0.6% 0.6%
EBT -0.3 -0.2
Net income -0.6 -0.5
Earnings per share* (in EUR) -0.04 -0.03
Net cash flow 7.4 0.8
EUR m, IFRS March 31, 2012 December 31, 2011*: Basis: 13,976,790 shares
Balance sheet total 190.7 195.0
Equity 74.7 75.2
Equity ratio 39.2% 38.6%
Net finance debt (as of Dec 31) 18.5 24.4
Gearing** 0.24 0.32
Net current assets *** 71.6 76.4
Employees 1,639 1,651
**: Net finance debt divided by equity
***: Trade receivables + inventories - trade payables
Contact:
WashTec AG
Argonstrasse 7
86153 Augsburg
Tel.: +49 (0)821 - 55 84 - 0
Fax: +49 (0)821 - 55 84 - 1135
End of Corporate News
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Language: English
Company: WashTec AG
Argonstraße 7
86153 Augsburg
Germany
Phone: +49 (0)821 55 84-0
Fax: +49 (0)821 55 84-1135
E-mail: washtec(at)washtec.de
Internet: www.washtec.de
ISIN: DE0007507501
WKN: 750750
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, München, Stuttgart
End of News DGAP News-Service
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