init innovation in traffic systems SE

Earnings Release • Nov 6, 2014

News Details

Corporate | 6 November 2014 17:10

init innovation in traffic systems AG: init continues to grow in the third quarter despite political turbulence

init innovation in traffic systems AG / Key word(s): 9-month figures/9-month figures

06.11.2014 / 17:10

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– Revenues and EBIT largely as planned

– Revenues of EUR 69.6m as at the end of September, up 14 per cent on the previous year’s figure

– Operating profit increases by 33 per cent to EUR 10.0m

– Revenues and EBIT guidance for 2014 confirmed

Karlsruhe, 6 November 2014. During the third quarter, init innovation in traffic systems AG (ISIN DE 0005759807) was largely able to escape the renewed political crises and their consequences for the economy, in particular in Europe, and essentially met revenues and EBIT targets. According to the figures now published, revenues this period rose relative to the prior-year quarter to EUR 25.7m (Q3 2013: EUR 24m), while earnings before interest and taxes (EBIT) increased compared to the same period last year to EUR 3.7m (Q3 2013: EUR 3.3m). Against this background, the Managing Board has confirmed its guidance for revenues and EBIT growth for 2014 in the quarterly report.

After the first nine months of the financial year, the globally active provider of telematics, planning and electronic fare collection systems for buses and trams had recorded an increase in revenues of around 14 per cent to EUR 69.6m (prior year: EUR 61.1m). Operating profit (EBIT) rose as much as 33 per cent to EUR 10.0m (prior year: EUR 7.5m). As at the end of September, net profit had climbed to EUR 6.8m (prior year: EUR 5.1m). This corresponds to earnings per share of EUR 0.68 (prior year: EUR 0.51).

The company expects revenues for 2014 of the order of EUR 103m to 107m and an operating profit (EBIT) of between EUR 17m and 19m.

Against the backdrop of the deterioration in the global economic situation the Managing Board believes, however, that the risks to the business performance of init in 2015 have also increased. This can be seen in longer decision-making periods for major international projects and the suspension and only partial republication of tenders.

Following a further increase in the third quarter, incoming orders for the first nine months of the year totalled EUR 55.6m and were thus considerably higher than in the prior-year period (Q1-Q3 2013: EUR 46.7m). “We expect incoming orders in 2014 will be significantly higher than the previous year’s level, but as things stand we believe that our objective of EUR 105m will hardly be achievable”, says the init Managing Board, capping expectations. The order backlog as at 30 September 2014 stood at around EUR 125m and thus continues to exceed our planned revenues.

“Given the threat of a global economic downturn, many experts are recommending investments in infrastructure, and transport systems in particular, as a way to stimulate long-term growth in all countries. There is also the need for massive investment worldwide in intelligent transport infrastructure solutions to ensure continued mobility in metropolitan areas. We therefore believe that it is highly likely that we will now see some catching up in this area, with a large number of tenders being issued in 2015 – with corresponding growth opportunities for init”, states the Managing Board in its outlook.

The complete quarterly report of init innovation in traffic systems AG will be available online from 13 November at http://www.initag.de/Report-Q3-2014.htm .

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Language:	English
Company:	init innovation in traffic systems AG
	Käppelestraße 4-6
	76131 Karlsruhe
	Germany
Phone:	+49 (0)721 6100 0
Fax:	+49 (0)721 6100 399
E-mail:	ir@initag.de
Internet:	www.initag.de
ISIN:	DE0005759807
WKN:	575980
Listed:	Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart

End of News	DGAP News-Service

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