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 ranks as one of the world’s top equipment suppliers and service companies for the cement industry and has over 150 years’ experience in cement plant construction. The technology-focused Group’s core competencies include process engineering and project implementation. KHD offers a wide range of products and services for the cement industry and is a front-runner in environmentally friendly and energy-efficient products for grinding and pyro-process technologies. The holding company KHD Humboldt Wedag International AG headquartered in Cologne, Germany, manages the internationally operating subsidiaries. The Group employs over 750 staff members worldwide and is represented by Customer Service Centers in growth markets such as 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 is available at www.khd.com.
KHD Humboldt Wedag International AG
Tel.: +49 (0)221 – 6504-1500