Muehlhan AG

Earnings Release • May 15, 2009

News Details

Corporate | 15 May 2009 07:53

Muehlhan AG: Muehlhan starts off fiscal year 2009 in a solid position

Muehlhan AG / Quarter Results/Development of Sales

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PRESS RELEASE

Muehlhan starts off fiscal year 2009 in a solid position

* Sales revenues of EUR 47.3 million are slightly below the prior-year
level (EUR 49.4 million)
* Improved EBIT of EUR 2.4 million
* Executive Board confirms goals for 2009

Hamburg, 15 May 2009 - In the first three months of the current fiscal
year, Muehlhan AG (Entry Standard; ISIN DE000A0KD0F7) generated EUR 47.3
million of sales revenues and EBIT of EUR 2.4 million. This represented an
increase of EUR 0.5 million over the prior-year period (EUR 1.9 million).
Despite the current economic situation, sales revenues were only EUR 2.0
million below the prior-year level (EUR 49.4 million).

Europe once again was the biggest contributor to revenues, with EUR 37.1
million; however, this figure was considerably lower than the prior-year
figure (EUR 40.2 million). The U.S. businesses likewise posted
significantly lower revenues than in the prior-year quarter (EUR 3.1
million, versus EUR 5.7 million in 2008). By contrast, sales revenues for
the Asian businesses nearly doubled to EUR 6.6 million in the first quarter
of 2009 (first quarter of 2008: EUR 3.4 million), thanks to the continuing
positive trend in the Middle East.

With regard to the business segments, the Ship Newbuilding segment recorded
EUR 16.2 million of sales in the first quarter of 2009, which was
approximately EUR 2.2 million lower than in the previous year.
Cancellations and postponements affected the outlook for the newbuilding
business. As a result, at the end of the first quarter, this segment had
over 300 fewer jobs in the USA and Eastern Europe than during the same
period of the previous year. The Ship Repair segment recorded EUR 9.7
million of revenues for the first quarter, slightly higher than in the
previous year (EUR 9.5 million). Because of the current economic downturn,
this business segment, which otherwise has very good prospects overall,
turned in lower-than-expected growth.

The Oil & Gas Offshore segment benefited from the EUR 1.1 million of
compensatory damages awarded in the lower court's ruling against the former
management of the U.S. subsidiary Muehlhan Offshore Inc. However, this
non-recurring item was offset by an equivalent amount of operating losses
from the U.S. subsidiary, where business in the meantime has come to a
complete standstill. In order to avoid further losses, capacity was slashed
virtually to zero at the beginning of the second quarter. A total of around
100 jobs had to be cut. Overall, this segment - which was also impacted by
the seasonal business weakness in the North Sea - contributed only EUR 0.9
million to sales (prior year: EUR 3.2 million).

The situation in the Industry Services segment was quite different. Here,
Muehlhan managed to increase sales by some 10%, to EUR 20.1 million
(previous year: EUR 18.2 million). This was attributable primarily to the
positive business trend in the Middle East, continued stability in the
scaffolding business and substantial growth in the bridge-renovation
business in the USA. The wind turbine segment is also showing strong
growth; nevertheless, because of the trouble end customers are having in
financing wind farms, it is still lagging behind the good medium-term
growth
forecasts.

During the reporting period, EBITDA stood at EUR 4.2 million, which was
over 13% higher than in the first quarter of 2008 (EUR 3.7 million), while
EBIT totaled EUR 2.4 million (26% higher than the prior-year figure of EUR
1.9 million). Thus, with consolidated net income of EUR 1.1 million,
Muehlhan has started fiscal year 2009 in a solid position.

Outlook
Assuming that the economic situation will at least not worsen beyond its
current level, the Executive Board is standing by the forecasts that were
published in March 2009, with no changes (sales of between EUR 200 and 220
million, EBIT of between EUR 9 and 12 million and consolidated after-tax
income of between EUR 4 and 5 million).

Key corporate figures:
in kEUR Q1 2009 Q1 2008
Total sales revenues 47,345 49,366
EBITDA * 4,179 3,679
EBIT ** 2,398 1,900
EBT *** 1,870 1,368
Net earnings per share in EUR 0.06 0.04
Consolidated earnings after minority interests 1,120 806

in kEUR March 31, 2009 December 31, 2008
Fixed assets **** 65,467 65,455
Equity 64,417 62,999

* EBITDA: Profit from operations and depreciation
** EBIT: Profit from operations
*** EBT: Earnings before taxes
**** Fixed assets: Total of non-current assets less deferred tax assets

About Muehlhan:
The Muehlhan Group is a leading world provider of marine surface
protection. Its core business consists of applying and renewing corrosion
protection coatings to steel structures. They include steel surfaces of
ships and of oil and gas rigs and platforms. The Muehlhan Group is also
active in the Industry Services segment, which, besides scaffolding for
marine and industry customers, includes surface protection for wind
turbines, chemical production plants, and fuel storage depots, steel
bridges, cranes, and machinery. The company's patented technology
brand-named μ-jet(R) guarantees especially high quality and efficiency
in the removal of old coatings and rust, particularly in the open sea.
Muehlhan was established in Hamburg in 1881. For 2008 the company with its
some 2,500 employees around the world generated sales revenue of more than
EUR 206 million (IFRS). For further information visit
http://www.muehlhan.com

Press contact: Ties Kaiser c/o Muehlhan AG, Phone +49 40 752 71 156, email:
kaiser@muehlhan.com

15.05.2009 Financial News transmitted by DGAP

Language: English
Issuer: 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, Hamburg, München, Stuttgart; Entry
Standard in Frankfurt

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