KHD Triples Order Intake and Confirms Guidance
Cologne, Germany, August 15, 2012 – Although tough market conditions continued to hamper KHD Humboldt Wedag International AG’s (KHD) revenue and EBIT growth, the company was successful in winning new orders with its strategic partners during the first six months of 2012, and, thus, laying the foundation for future growth. Weakened economic growth in industrialized and emerging countries had a negative impact on global cement markets, and pushed customers to delay awarding and executing projects. The result was a 3.8% fall in revenue, to EUR 102.5 million. Nevertheless, KHD’s gross profit remained at an acceptable 19.9% (previous year: 22.3%).
On the cost side, an increase in tendering activities for new cement plants and intensified product development costs left their mark. Sales expenses rose by 11.5%, while research and development expenditures increased by 26% year-on-year. Along with the decline in revenue, this led to an EBIT reduction of EUR 5 million, leaving an EBIT margin of 2.1% (previous year: 6.7%).
At EUR 248.4 million, KHD has almost tripled the HY 2011 order intake amount of EUR 87.4 million, and has actually surpassed the 2011 full year figure. “This is proof that we are on the right course with our strategy” comments Jouni Salo, CEO of KHD, a leading provider of equipment and services for the cement industry. Aside from key projects in Malaysia, Russia, and Venezuela, orders also came in from the minerals industry in Canada and Peru. At the same time, good progress has been made in developing the service business, especially in India. KHD’s order backlog of EUR 439.6 million is now at one of the highest levels reached in recent years.
The new orders are expected to have a positive impact on the liquidity situation during the current year, but will not yet have a material impact on operational results. KHD therefore confirms the revenue and earnings targets solidified a few weeks ago. For the financial year 2012, the company expects group revenue of between EUR 230 million and EUR 250 million, with an EBIT margin of between 2% and 4%.
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