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ER - BAUER Aktiengesellschaft: BAUER AG increases total Group revenues and starts the new financial year with an excellent order backlog

Company: Bauer AG Date: 2016-04-18 Language: English Register to download
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 News Details

Corporate | 18 April 2016 07:00

#   

BAUER Aktiengesellschaft: BAUER AG increases total Group revenues and starts the new financial year with an excellent order backlog

DGAP-News: BAUER Aktiengesellschaft / Key word(s): Final Results/Forecast  

  

2016-04-18 / 07:00  

The issuer is solely responsible for the content of this announcement.  

  

- - -

– Total Group revenues up 6.2 % to EUR 1,656.4 million.  

– Net result for the period increased to EUR 29.0 million (previous year: EUR 15.7 million).  

– Order backlog at the high level of EUR 995.6 million (previous year: EUR 762.7 million).  

– Dividend proposal for 2015: EUR 0.15 per share  

– Forecast for 2016: Total Group revenues of around EUR 1.65 billion, earnings after tax of around EUR 20 to 25 million and EBIT around EUR 75 million.

  

**Schrobenhausen/Munich** – The BAUER Group exceeded its forecast for financial year 2015. Numerous positive and negative individual factors played their part in this. Thanks to shareholding transactions in the Equipment segment, positive exceptional earnings were generated. These were contrasted by restructuring expenditures as well as losses in discontinued business activities and from completed projects, which were disrupted during the construction process.

Total Group revenues increased by 6.2 % from EUR 1,560.2 million to EUR 1,656.4 million year-on-year. These accumulated factors increased EBIT to EUR 90.7 million (previous year: EUR 76.4 million) and the net result for the period to EUR 29.0 million (previous year: EUR 15.7 million). “The numerous individual factors, which had a particular effect on key results, naturally make it difficult to draw a meaningful comparison with previous years. The Group’s pure operative business without special effects was nevertheless positive,” comments Prof. Thomas Bauer, Chairman of the Management Board of BAUER AG.

As in the previous year, the Management Board and Supervisory Board will propose to the Annual General Meeting that a dividend amounting to EUR 0.15 per share should be paid for 2015. It will not be possible to increase the dividend as the equity base is to be protected and the equity ratio shall be increased from 27.2 % back to above 30 % in the medium term.

  

**Business segments**  

With its three segments – Construction, Equipment and Resources – more than 110 subsidiaries and its broadly diversified business model, the Group operates in some 70 countries around the world.

In 2015, the **Construction segment** generated a good part of its increased total Group revenues in the Middle East. The subsidiaries in Saudi Arabia, Qatar and Egypt recorded significant growth. They are participating in major subway construction sites in Doha, Riyadh and Cairo, and are also involved in projects relating to the expansion of the Suez Canal. The segment also maintained its high standard of the previous year in the German construction market. Losses were recorded in Russia, where construction has practically come to a standstill due to sanctions and the depreciation of the rouble. Overall, the segment generated total Group revenues of EUR 742.9 million in 2015. This figure is 2.4 % up on the previous year (EUR 725.6 million). EBIT fell back from EUR 26.0 million to EUR 13.9 million. The net result for the period was negative at EUR -7.3 million in the reporting year (previous year: EUR 2.5 million). This is chiefly due to problems with the Center Hill dam project in the USA. As in the previous year, the project, which was completed in 2015, created a great financial burden and the US subsidiary had to implement restructuring measures as a result. The order backlog increased further by 29.8 % compared with 2014 (EUR 455.5 million), reaching the record level of EUR 591.1 million. Several major projects were also acquired as well as small and medium-sized projects in all regions around the world.

Sales in the **Equipment segment** increased despite a difficult market environment and the operating result reached a healthy level. Total Group revenues rose by 17.8 % to EUR 753.1 million (previous year: EUR 639.2 million). This significant increase was primarily caused by exceptional earnings. These were generated on the one hand by the sale and revaluation of shares in SPANTEC Spann- und Ankertechnik GmbH. Another exceptional result arose from the joint venture agreement with Schlumberger, the world’s leading supplier of technology, integrated project management and information solutions for oil and gas industry customers. Schlumberger invested 49 % each in two subsidiaries as part of a cash capital increase. The sales revenues grew by 2.9 % to EUR 548.0 million (previous year: EUR 532.7 million). As a result of the exceptional earnings, the segment’s EBIT also increased significantly from EUR 36.0 million to EUR 99.4 million. The net result for the period rose correspondingly from EUR 8.8 million to EUR 65.4 million. When disregarding the special effects, sales revenues increased and EBIT reached a healthy level despite a difficult market environment. New developments have also established themselves well in the market. The deep drilling rigs business, which depends on crude oil prices, proved a bigger concern, which is also reflected in the order backlog. It dropped to EUR 128.1 million, 16.9 % below the previous year (EUR 154.2 million). The joint venture with Schlumberger will provide impetus in this respect.

The **Resources segment** was badly affected by the falling raw material prices in the past year. There were barely any deep drilling projects for oil, gas, water and natural resources. The reorganization of the segment, which was started in 2014, also had a negative effect on earnings yet again: for the future unprofitable businesses were discontinued, capacities reduced and subsidiaries closed down.

Total Group revenues decreased by 12.3 % to EUR 221.6 million as a result (previous year: EUR 252.8 million). EBIT was clearly negative at EUR -19.8 million (previous year: EUR 15.9 million), as was the net result for the period at EUR -29.4 million (previous year: EUR 4.3 million). The order backlog of EUR 276.5 million was 80.7 % higher than in 2014 (EUR 153.0 million), which is a positive sign. This was primarily due to the largest single project in the history of the BAUER Group, the remediation of two segments of the old Kesslergrube landfill site in Grenzach-Wyhlen, Germany, with a value of over EUR 100 million. The order situation in the environmental and water sectors also provides a positive picture with regard to the further development of the segment.

  

**Order backlog and outlook**

A very positive order situation forms the basis of the BAUER Group’s current financial year. The order backlog had risen by 30.5 % to EUR 995.6 million (previous year: EUR 762.7 million) by the end of 2015. Apart from the Construction segment, the Resources segment contributed the lion’s share to this development with the largest project in the history of the Group. “The very high order backlog is an indication of our strength in the market. We can build on that in 2016,” comments Prof. Bauer. “The instability in many regions around the world will be with us in the future, but our Company has taken a new path in many respects and has a product and service portfolio that is in great demand.”

The Group is cautiously optimistic and expects total Group revenues of around EUR 1.65 billion in the current financial year. It expects earnings after tax of around EUR 20 to 25 million and EBIT of around EUR 75 million.

  

Our full Annual Report, including a detailed analysis of the individual segments and markets, can be found on our website at http://www.bauer.de.

  

**About Bauer**

The BAUER Group is a leading provider of services, equipment and products related to ground and groundwater. With over 110 subsidiaries, Bauer operates a worldwide network on all continents.

The operations of the Group are divided into three future-oriented segments with high synergy potential: Construction, Equipment and Resources. The Construction segment offers new and innovative specialist foundation engineering services alongside the established ones, and carries out foundation and excavation work, cut-off walls and ground improvements worldwide. Bauer is a world market leader in the Equipment segment and provides a full range of equipment for specialist foundation engineering as well as for the exploration, mining and extraction of natural resources. In the Resources sector, Bauer focuses on highly innovative products and services in the areas of water, environment and mineral deposit reserves.

Bauer profits greatly from the collaboration between its three separate segments, enabling the Group to position itself as an innovative, highly specialized provider of products and services for demanding projects in specialist foundation engineering and related markets. Bauer therefore offers suitable solutions to the greatest problems in the world, such as urbanization, the growing infrastructure needs, the environment and water, oil and gas.

The BAUER Group was founded in 1790 and is based in Schrobenhausen, Bavaria. In 2015, it employed some 10,700 people in around 70 countries and achieved total Group revenues of EUR 1.66 billion. BAUER Aktiengesellschaft is listed in the Prime Standard of the German stock market.

More information can be found at [http://www.bauer.de](http://public-cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=aa2593d66558ba39036cfbf6cd4fac93&application_id=454797&site_id=news_data&application_name=news) .

  

**GROUP KEY FIGURES 2015 (IFRS)**

|     |     |     |     |
| --- | --- | --- | --- |
|     | **2014\*** | **2015** | **Change** |
|     | **in EUR million** | **in EUR million** |     |
| **Total Group revenues** | **1,560.2** | **1,656.4** | +6.2 % |
| of which |     |     |     |
| – Germany | **440.2** | **473.7** | +7.6 % |
| – International | **1,120.0** | **1,182.7** | +5.6 % |
| of which |     |     |     |
| – Construction | **725.6** | **742.9** | +2.4 % |
| – Equipment | **639.2** | **753.1** | +17.8 % |
| – Resources | **252.8** | **221.6** | \-12.3 % |
| – Other/Consolidation | **\-57.4** | **\-61.2** | n/a |
| **Consolidated revenues** | **1,506.0** | **1,587.9** | +5.4 % |
| **Sales revenues** | **1,375.7** | **1,379.0** | +0.2 % |
| **Order intake** | **1,521.1** | **1,811.4** | +19.1 % |
| **Order backlog** | **762.7** | **995.6** | +30.5 % |
| **EBITDA** | **171.0** | **185.1** | +8.2 % |
| **EBITDA margin** (as percent of sales revenues) | **12.4 %** | **13.4 %** | n/a |
| **EBIT** | **76.4** | **90.7** | +18.7 % |
| **EBIT margin** (as percent of sales revenues) | **5.6 %** | **6.6 %** | n/a |
| **Net result for the period** | **15.7** | **29.0** | +84.7 % |
| **Equity** | **418.9** | **451.2** | +7.7 % |
| **Equity ratio** | **26.6 %** | **27.2 %** | n/a |
| **Earnings per share in EUR** | **0.85** | **1.73** | n/a |
| **Employees** (average number during the year) | **10,405** | **10,738** | +3.2 % |

\* Previous year’s figures adjusted  

  

  

Contact:  

Christopher Wolf  

Investor Relations  

BAUER Aktiengesellschaft  

BAUER-Strasse 1  

86529 Schrobenhausen, Germany  

Phone: +49 8252 97-1797  

Fax: +49 8252 97-2900  

investor.relations@bauer.de  

www.bauer.de

  

- - -

2016-04-18 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG.  

The issuer is solely responsible for the content of this announcement.  

  

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.  

Media archive at www.dgap-medientreff.de and www.dgap.de  

- - -

  

|     |     |
| --- | --- |
| Language: | English |
| Company: | BAUER Aktiengesellschaft |
|     | BAUER-Straße 1 |
|     | 86529 Schrobenhausen |
|     | Germany |
| Phone: | +49 (0)8252 97 1218 |
| Fax: | +49 (0)8252 97 2900 |
| E-mail: | investor.relations@bauer.de |
| Internet: | www.bauer.de |
| ISIN: | DE0005168108 |
| WKN: | 516810 |
| Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart; Terminbörse EUREX |
|     |     |     |

|     |     |
| --- | --- |
|     |     |
| End of News | DGAP News Service |

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