KHD Humboldt Wedag International AG closes 2014 financial year with positive EBIT

  • Order intake brought down by market conditions
  • Revenue amounting to € 240 million slightly down
  • EBIT and EBIT margin positive
  • Robust liquidity position and stable equity ratio

Cologne, Germany, March 19, 2015 - KHD Humboldt Wedag International AG (KHD), one of the world’s leading suppliers of equipment and services for the cement industry, achieved positive EBIT (€ 1.1 million) in the 2014 financial year, despite slightly lower revenue.

KHD’s order intake fell to € 101.3 million thanks to continued slow investment in the cement industry and the corresponding delays in awarding new orders.

The slight drop in revenue of 3.8% to € 240.2 million is connected with the lower order backlog at the beginning of 2014. The Parts & Services business developed well and contributed € 59.2 million to revenue. The gross profit margin improved from 11.8% to 13.4%.

Despite costs related to intensified research and development activities, EBIT was nearly stable at € 1.1 million (previous year: € 1.2 million). Group net profit for the year rose to € 1.6 million (previous year: € 0.7 million), resulting in earnings per share of € 0.02 (previous year: € 0.01). This increase is mainly due to interest income from intercompany loans extended to AVIC during the reporting year totaling € 100 million.

The extension of the loans, in particular, contributed to the reduction in cash and cash equivalents from € 228.2 million to € 123.6 million, which is still a comfortable level for the operating business. The equity ratio rose from 53.2% in the previous year to 57.3% as of December 31, 2014.

As a result of focused market activity in the emerging economies, and provided that the political situation related to Russia eases, KHD expects significantly higher order intake for the 2015 financial year. However, as a result of the low order backlog going into 2015, revenue will be significantly below the level of the 2014 financial year. As the execution of projects with low margins continues, EBIT for the current year will likely come in negative.

The complete Annual Report for KHD Humboldt Wedag International AG for the 2014 financial year is available at www.khd.com under Investor Relations.

KHD Group

KHD is a global leader for providing equipment and services to cement producers with over 150 years of experience in the cement industry. Process engineering and project management are among the core competencies of the technology-focused group. KHD offers a wide spectrum of products and services for the cement industry and is a leader in environmentally friendly and energy-efficient products for the grinding and pyro processing sections of cement plants. The holding company KHD Humboldt Wedag International AG, based in Cologne, Germany, coordinates its internationally operating subsidiaries. The group employs more than 750 employees worldwide, including customer service centers in growing markets like India, Russia and the Asia Pacific region. KHD Humboldt Wedag International AG (ISIN: DE0006578008, WKN: 657800) is listed on the Frankfurt stock exchange (General Standard). More information: www.khd.com.

Contact

KHD Humboldt Wedag International AG
Michael Nielsen
Investor Relations
Tel.: +49 (0)221 – 6504-1500
E-Mail: michael.nielsen@khd.com
Website: www.khd.com

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