Muehlhan AG

Earnings Release • Jul 30, 2010

News Details

Corporate | 30 July 2010 07:33

Muehlhan AG: Stable net income despite lower sales revenues

Muehlhan AG / Half Year Results/Interim Report

30.07.2010 07:33

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PRESS RELEASE

Muehlhan maintains stable net income despite lower sales revenues
* Net income increases slightly, to EUR 2.2 million
* Sales revenues of EUR 85.2 million are 15% lower than prior-year figure
* Number of employees increased

Hamburg, 30 July 2010 - In the first six months of the current fiscal year,
Muehlhan AG (Entry Standard; ISIN DE000A0KD0F7) generated EUR 85.2 million
of sales revenues and EUR 2.2 million of net income. Although sales were
lower than in the previous year (first half of 2009: EUR 100.3 million; net
income: EUR 2.1 million), Muehlhan maintained a stable level of earnings.
The number of employees has risen by 90 to now 2,324 overall, due to the
increase of capacities in the Middle East.

A geographic breakdown shows that sales improved in the USA, to EUR 9.1
million from EUR 8.7 million in the previous year. However, earnings by the
U.S. businesses were significantly lower than projected. By contrast, the
European locations managed to maintain earnings at the prior-year level,
despite a drop in sales (EUR 63.3 million, versus EUR 86.2 million for the
prior-year period). The Group recorded significantly better sales at its
locations in the greater Asian region, including the Middle East: Although
this region also saw a decline in sales revenues (EUR 13.1 million,
compared with EUR 14.2 million in the first half of 2009), earnings
improved significantly.

As for the business divisions, Ship Newbuilding posted sales revenues of
EUR 30.3 million through the end of June 2010, down from EUR 33.8 million
during the same period last year. The sharp decline in revenues in Germany
due to the closure of shipyards and a bankruptcy during the previous year
was partially offset by higher sales revenues in the USA and China.
In the first half of 2010, the Repair business was impacted by the strong
reluctance of shipping companies to spend money on repairs and the
continued constraints on transport demand. Here, too, revenues of EUR 15.5
million (previous year: EUR 20.4 million) were below the prior-year level.
In the Oil & Gas Offshore business sector, Muehlhan increased sales
revenues through the end of June 2010 to EUR 5.2 million from EUR 3.9
million the previous year. The North Sea business continues to be the only
source of positive stimulus in this segment.
Industry Services, our fourth business, generated total sales of EUR 34.1
million for the first half of 2010 (prior year: EUR 41.3 million). This was
attributable to the decline in demand for steel-construction services
caused by the crisis and the continued slowdown in project work in the
wind-energy segment.

The Group posted EBITDA (earnings before interest, taxes, depreciation and
amortization) of EUR 7.0 million on 30 June 2010. EBIT (earnings before
interest and income taxes) amounted to EUR 3.8 million.

Outlook
A pick-up in production in the wind-turbine and bridge-renovation
businesses should translate into a stronger second half. Muehlhan believes
that it will come in at the lower end of the projected range published in
the spring (sales revenues of between EUR 190 and 210 million; EBIT of
between EUR 7 and 11 million; and earnings after taxes and minority
interests of between EUR 4 and 5 million).

Important company figures:
in kEUR 1st half
of 2010 1st half
of 2009
Total sales revenues 85,197 100,261
EBITDA 7,046 8,433
EBIT 3,768 4,902
EBT 3,081 3,505
Earnings per share (EUR) 0.11 0.11
Consolidated earnings after minority interests 2,155 2,105
Cash flow 6,886 8,713
Investments 2,543 3,642
Depreciation and amortization 3,278 3,531

in kEUR 30 June 2010 31 December 2009
Balance sheet total 119,857 115,565
Fixed assets 50,366 54,126
Equity 69,863 66,320
Employees 2,324 2,236

For additional information the company refers to the Half-Year Report 2010
as published today.

About Muehlhan:
The Muehlhan Group is a global specialist in high-quality surface
protection and industrial services. Our four business segments - Ship
Newbuilding, Ship Repair, Oil & Gas Offshore and Industry Services - enable
us to provide a broad range of professional services to our maritime and
industrial markets. The excellent quality of our service, our high degree
of organization, our technical expertise and almost 130 years of experience
are what set us apart.
With our workforce of around 2,300 employees at 40 locations worldwide, we
generated sales revenues of EUR 190.8 million in 2009. In the years to
come, we will utilize our leadership position as a stable foundation for
further expanding our business.

Press contact: Ties Kaiser, Muehlhan AG; Tel: +49 40 75271 -156 10 640,
e-mail: kaiser@muehlhan.com

30.07.2010 Ad hoc announcement, Financial News and Press Release distributed by DGAP.
Media archive at www.dgap-medientreff.de and www.dgap.de

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Language: English
Company: Muehlhan AG
Schlinckstrasse 3
21107 Hamburg
Deutschland
Phone: +49 40 75271 0
Fax: +49 40 75271 130
E-mail: investorrelations@muehlhan.com
Internet: www.muehlhan.com
ISIN: DE000A0KD0F7
WKN: A0KD0F
Listed: Freiverkehr in Berlin, München, Hamburg, Stuttgart; Entry
Standard in Frankfurt

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