KHD maintains profitability despite challenging environment
- Customers remain hesitant in awarding new orders
- High order backlog drives increase in revenue
- Gross profit margin reflects reduced margin quality of order backlog
- Cost-saving measures take effect
- Increase of € 0.9 million in earnings before interest and tax as well as improved EBIT margin
- Equity ratio and liquidity at comfortable levels
- Confirmation of guidance for 2013 financial year
Cologne, Germany, August 14, 2013 – KHD Humboldt Wedag International AG, one of the world’s leading providers of equipment and services for the cement industry, has increased its revenue in the first half of 2013 compared to the same period in the previous year. The Group attained revenues of € 111.5 million – an 8.8% increase over the previous year. Earnings before interest and tax (EBIT) reached € 3.1 million, an improvement of € 0.9 million compared to H1 2012. EBIT margin also increased to 2.8%.
Orders won in 2012 – including major contracts in Malaysia and Venezuela – had a positive impact on revenue development. Despite reduced margin quality in the order backlog KHD reported a favorable trend in EBIT that reflects consequent cost management.
“In such a challenging economic environment our efforts on the cost side are now clearly paying off,” said Group CFO Ralph Quellmalz. The slow growth in the industry and lower order intake for KHD is tied to weaker than expected growth in the emerging economies and continuing economic uncertainty. New business volume amounted to € 40.4 million in the first half of 2013, compared to € 248.4 million in the same period of the previous year, but order backlog (€ 419.9 million) remained on a high level.
“We will continue to focus on our core business and will therefore increasingly invest in our premium brand and in our service business” said Group CEO Jouni Salo. In view of this, a license agreement was signed with Weir Minerals in April 2013. Weir Minerals now has direct control over planning, production and sales of HPGRs (highpressure grinding rolls) for minerals applications. KHD will receive a license fee in return.
In overall terms, the Management Board of KHD confirms the outlook for the full year 2013 as presented in its 2012 Annual Report and expects a significant increase in revenue compared to the previous year, gross profit margin to be at roughly the same level as in the first half of the year and a slight improvement in EBIT margin.
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