KHD adjusts forecast

Cologne, Germany, August 4, 2014 – KHD Humboldt Wedag International AG (KHD), Cologne, is updating its annual budget and adjusting its forecast for the 2014 financial year accordingly. Although the Parts & Services segment is expected to perform better than originally planned, the Capex segment has been strongly affected by risks arising from the current economic and political developments.

In connection with the crisis in the Ukraine and the resulting uncertainties, a large order in Russia, will most likely no longer be considered as order intake for the current year. This order was announced in April 2014 with an original volume of over € 90 million. However, KHD has not yet been able to book this order as order intake. As a result of this, the Group now expects order intake for the 2014 financial year to reach just below the 2013 order intake level, which amounted to € 172.4 million. This also means that KHD will not receive the forecasted down payments for this project and therefore operating cash flow for the 2014 financial year is now forecasted to be significantly negative.

The reported postponements in order intake as well as further delays in order execution are also having an impact on expected revenues. For the 2014 financial year, KHD is now forecasting a drop in revenue of up to 10% compared to the previous year (€ 249.6 million). However, KHD maintains its latest EBIT margin guidance for the 2014 financial year.