KHD Humboldt Wedag International AG starts 2013 with increased order backlog but market remains uncertain
- KHD Group increases competitiveness and wins new orders in difficult market environment
- Revenue and EBIT margin come in within target corridor
- Dividend to be proposed at upcoming AGM
Cologne, Germany, March 27, 2013: KHD Humboldt Wedag International AG (KHD), one of the world’s leading providers of equipment and services for the cement industry, closed the 2012 financial year with a strong increase in order intake and order backlog and has thus established a good starting position for future growth. Although Group revenue (€ 213.5 million) and EBIT margin (3.0%) fell short of the previous year’s figures, both came in within announced targets.
The slowdown in global growth was clearly evident in KHD’s core markets. Market uncertainties and low utilization rates continued throughout 2012 and thus only very few new capacity projects were awarded. The Group was nevertheless able to increase order intake by 82.9% to € 410.9 million; partly thanks to increased competiveness, a focal part of KHD’s ongoing strategy.
Delays in project execution in some regions as well as lower order intake from previous years caused revenue to decline by 9.0%, from € 234.6 million to € 213.5 million. Projects in India, followed by Turkey and Russia contributed largely to 2012 revenues. Orders won in 2012 played only a minor role in revenues. EBIT of € 6.4 million (previous year: € 17.6 million) corresponding to an EBIT margin of 3.0% (previous year: 7.5%) was in line with the forecast. Earnings per share amounted to € 0.14 (previous year: € 0.28).
At the upcoming Annual General Meeting, the Management and Supervisory Boards will propose to distribute € 3.0 million of the Company’s €4.8 million net retained profits as a dividend to shareholders. This corresponds to a dividend of € 0.06 per share. The remaining amount of € 1.8 million should be carried forward.
The Group continues to have a strong liquidity and equity base. At 53.6% on December 31, 2012, KHD’s equity ratio remains almost on the same level as in the previous year. This gives KHD a strong financial foundation in an increasingly complex and competitive environment.
“We were successful in winning some of the very few orders placed in 2012” says KHD CEO Jouni Salo on the past financial year. “Our order backlog enables us to continue to improve KHD’s competitive position and thus secure long-term growth for the Group.” Many of the world’s major cement producers are looking to increase efficiency and lower costs, which provides new opportunities for KHD. Salo: “Over the past few years we have built up a strong account management team. We know first-hand that our customers have a need for costeffective solutions that offer high levels of availability and we are working hard to meet these needs as we develop and improve our business.” As a result of ever stricter emissions limits and rising energy costs in many regions of the world, KHD’s clean technology components, like its prize-winning combustion chamber, offer the Group further opportunities to grow.
Going forward in 2013 KHD’s market remains sensitive and uncertain. Nevertheless, the Group expects solid order intake. An increase in revenue combined with additional costimproving measures should yield an improvement in EBIT.
For the complete 2012 Annual Report for KHD Humboldt Wedag International AG please visit the Company’s website, 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