Earnings Release • Mar 31, 2011
Earnings Release
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Corporate | 31 March 2011 08:53
KHD Humboldt Wedag International AG publishes 2010 business results
KHD Humboldt Wedag International AG / Key word(s): Final
Results/Forecast
31.03.2011 / 08:53
Cologne - March 31, 2011: KHD Humboldt Wedag International AG ('KHD'), one
of the world's leading providers of equipment and services for the cement
industry, publishes its 2010 annual report today. Although Group revenue
fell from EUR 360 million in the previous year to EUR 287 million due to
the lower order intake during the 2009 economic crisis, KHD nevertheless
booked a significant increase in new orders in 2010. Order Intake was up to
EUR 308 million on the basis of pro forma figures (previous year: EUR 123
million). On December 31, 2010 order backlog was at a solid EUR 304
million.
The Group restructured in March 2010 so that several of the Group's legal
entities were reported through Q1 under the former parent company.
Therefore, the legal reporting in 2010 does not reflect the full
performance of the Group. Group EBIT amounted to EUR 25.0 million on a
legal reporting basis, or 8.7% of Group revenue (EBIT-margin). The
consolidated net income for the year amounted to EUR 15.8 million.
The most important events included two extensive cooperation agreements. An
exclusive long-term global sales agreement was concluded with Weir Minerals
in May 2010, which will allow KHD to further expand its roller press
technology and market presence in the minerals processing sector.
The strategic partnership with CATIC Beijing Co. Ltd., subsidiary of major
Chinese state enterprise AVIC, was also a milestone for KHD. Group
management launched the partnership in 2010 and it went into full effect in
February 2011. CATIC demonstrated its commitment to the strategic
partnership by acquiring 20% of KHD's share capital as part of a capital
increase. KHD and CATIC aim to become a market leader and are already
jointly tendering on a number of cement projects, particularly for turn-key
plants. The partnership will also help KHD gain entry in the important
Chinese market - the world's largest market for cement. KHD anticipates
that this partnership will have a larger impact on revenue and earnings in
2012.
To get the most out of the strategic partnership, the KHD Supervisory Board
appointed Yizhen 'Mario' Zhu as its third Management Board member on March
29, 2011. He will be in charge of KHD's global EPC business as well as for
developing KHD's new customer service center the the asia pacific region.
Before moving to KHD, he held a variety of senior management positions at
CATIC (AVIC) and has been a major force in developing their cement plant
construction business. Mr. Zhu has both an MBA as well as an engineering
degree.
In September 2010 KHD signed an order of EUR 85 million for 2 x 10.000 kiln
lines with Indian cement producer UltraTech Cement Ltd., who is one of the
largest cement producers in the world and the largest in India. At the time
of signing KHD was the only supplier in India with a reference plant for
10.000 tpd clinkerization in operation. KHD's efficient COMFLEX(R)
grinding technology for both clinker and raw material were also convincing
factors in securing the deal.
'We are satisfied with business development in 2010. Our order intake
figures show that cement producers are again making larger investments
following the economic crisis. The partnerships with Weir Minerals and
CATIC also offer us additional international growth potential that we
absolutely aim to exploit,' commented Jouni Salo, KHD's CEO. The Management
Board is confident that the positive economic trends, particularly in the
BRIC states, will continue, which will drive global cement consumption.
Economic conditions have nevertheless been overshadowed by the reactor
catastrophe in Japan, and the continued disturbances in some of the
Arabic-speaking countries.
Looking at the current 2011 financial year, the Management Board
consequently expects order intake and revenues on 2010 levels. Due to the
newly-founded business partnerships and the general economic outlook, KHD
anticipates increased order intake and revenues for 2012. At the same time,
the Management Board is of the opinion that continuing price pressure in
the sector will have a greater impact on margins in 2011. For this reason,
2011 margin may be slightly lower than in 2010. However, improvement is
expected in 2012.
KHD Humboldt Wedag International AG's full 2010 annual report will be
available today under www.khd.com / investor relations.
KHD Group
KHD is a global leader for cement plant technology, equipment and services
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
aftermarket services for the cement industry and is a leader in
energy-efficient and environmentally friendly products for the cement
grinding and pyro processing sections of the plants. The holding company
KHD Humboldt Wedag International AG is based in Cologne, Germany. The group
has over 767 employees worldwide with customer service centers in growing
markets like India and Russia. Other major customer service centers
include the USA covering both North and South America and Cologne is home
to the EMEA (Europe, Middle East and Africa) customer service center. KHD
Humboldt Wedag International AG (ISIN: DE0006578008, WKN: 657800) is listed
on the Frankfurt stock exchange (General Standard).
More information: www.khd.com
Contact:
Investor Relations
cometis AG
Ulrich Wiehle | Susanne Gremmler
Tel.: +49 (0)611 - 205855- 23
Fax: +49 (0)611 - 205855-66
E-Mail: [email protected]
End of Corporate News
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Language: English
Company: KHD Humboldt Wedag International AG
Colonia Allee 3
51067 Köln
Deutschland
Phone: +49 (0)221 6504 1106
Fax: +49 (0)221 6504 1090
E-mail: [email protected]
Internet: www.khd.com
ISIN: DE0006578008
WKN: 657800
Listed: Regulierter Markt in Frankfurt (General Standard);
Freiverkehr in Berlin
117780 31.03.2011
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