KHD Humboldt Wedag International AG Closes 2013 with Strong Increase in Revenues and Slightly Positive Result
- Order intake significantly below previous year’s level caused by unfavorable market conditions
- Increase in revenues of 16.9%
- EBIT and EBIT margin reflect challenging market conditions
- Solid liquidity position and stable equity ratio
Cologne, Germany, March 27, 2014. KHD Humboldt Wedag International AG (KHD), one of the world’s leading suppliers of equipment and services for the cement industry, achieved revenues of € 249.6 million in the 2013 financial year, a significant increase compared with the previous year. Continued fierce competition and the unsatisfactory margin quality in the order backlog had a negative impact. KHD nevertheless recorded a positive EBIT of € 1.2 million.
KHD’s order intake fell by 58.0% to € 172.4 million due to continued cautious investment activity and delays in the awarding of orders. However, KHD won important large orders from Russia, the USA, and Turkey in the fourth quarter. The high order backlog from the previous year prompted a 16.9% increase in revenue to € 249.6 million. In addition to the project business the stable business in spare parts and services contributed almost € 38 million to revenues. Gross profit margin declined from 20.5% to 11.8%. This was caused in particular by the lower margin quality of projects won in a highly competitive environment with strong margin pressure as well as by difficulties in the execution of some projects.
In spite of the success in the strict management of overhead costs EBIT of € 1.2 million (previous year: € 6.4 million), corresponding to an EBIT margin of 0.5% (previous year: 3.0%), remained significantly below the original forecast. Earnings per share were € 0.01 (previous year: € 0.14).
Total cash and cash equivalents decreased to € 228.2 million, primarily caused by negative operating cash flow, but still remained on a high level. At 53.2%, the equity ratio as of December 31, 2013, is at virtually the same level as in the previous year. Together with the high liquidity, the equity ratio provides a solid basis for future development.
“The takeover and intensified cooperation with our strategic partner AVIC offer new opportunities,” said KHD CEO, Jouni Salo. “Together with AVIC, we will continue to develop our business and leverage the strengths of both companies.” Furthermore, the expansion of the spare parts and service business, which will be managed in the newly launched “Parts & Services” business unit, is an important cornerstone of KHD’s future development.
KHD forecasts a significantly higher order intake in the 2014 financial year due to projected market improvement. The Group expects only slightly positive EBIT margin for the current financial year, due to continued project execution of contracts with lower margins. Revenues are forecasted to be on a similar level as in 2013.
The complete Annual Report for KHD Humboldt Wedag International AG for the 2013 financial year is available at www.khd.com under Investor Relations.
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 the 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.
KHD Humboldt Wedag International AG
Tel.: +49 (0)221 – 6504-1500