Muehlhan AG

Earnings Release • Aug 15, 2007

News Details

Corporate | 15 August 2007 07:46

Muehlhan announces interim figures for first half of 2007

Muehlhan AG / Half Year Results/Interim Report

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PRESS RELEASE

Muehlhan announces interim figures for first half of 2007

• Sales increase to EUR 92.1 million in first half of 2007

• Income improves noticeably in second quarter of 2007 compared with start
of the year

• Business in Europe generates increase of around 20% in revenue and
operating result

• US business considerably weaker than previous year

Hamburg, 15 August 2007 – Muehlhan AG (Entry Standard; ISIN DE000A0KD0F7)
increased its sales to EUR 92.1 million in the first six months of the
current financial year, compared to EUR 88.6 million in the first half of
2006. The second quarter contributed the major share towards this positive
development, with sales of EUR 49.2 million (first quarter of 2007: EUR
42.8 million).

Business in Europe is especially strong, accounting for a EUR 72.9 million
share of sales(previous year: EUR 61.3 million). In the United States,
Muehlhan was unable to match the previous year’s sales figure (EUR 22.5
million), posting revenue of EUR 13.4 million.

In terms of segment, the repairs business was one of the strongest drivers
of growth for the Muehlhan Group in the first half of 2007, generating
sales of EUR 20.3 million, a year-on-year increase of around 20% (first
half year of 2006: EUR 16.8 million). The company posted sales of EUR
11.3 million in the second quarter of 2007 alone.

Of all fields of business, the ship newbuilding division again contributed
the lion’s share of sales, EUR 34.1 million, in the first half of 2007.
Due to the termination of a newbuilding project at a Norwegian shipyard at
the start of the year and the continuing weakness of the US newbuilding
business in the 2007 financial year, revenue, as anticipated, was slightly
down on the comparable previous year’s figure of EUR 36.1 million. However,
during the second quarter of 2007, Muehlhan generated EUR 18.3 million,
business having picked up noticeably during the quarter compared with the
first three months of 2007 (EUR 15.8 million).

In the offshore oil and gas segment, Muehlhan posted sales of EUR 5.7
million in the first half of 2007 (previous year: EUR 9.2 million).
Following the strong hurricanes of 2005, the stock of oil and production
platforms in the Gulf of Mexico was fundamentally overhauled or rebuilt in
the 2006 financial year. As a result, the demand for this category of
repair services fell in the first half of 2007, hampering business
development. In contrast, in the 'Northern North Sea' region, Muehlhan
succeeded in the middle of the second quarter in entering the market for
renovating offshore oil and gas platforms, becoming one of only three
service providers so far for a well-known international oil company. The
work had originally been expected to start at the beginning of the year.
Accordingly, sales in the offshore oil and gas segment picked up by 27%
only during the course of the first half year. The company posted
second-quarter sales of EUR 3.2 million, after EUR 2.5 million in the
first quarter of 2007.

Sales in the Industry Services segment improved by 28.3% from the first
half of 2006 (EUR 25 million), to EUR 32.1 million. This was due partly to
Muehlhan’s success in becoming involved in industry business in the Middle
East and to the proportion of sales contributed by the US subsidiary CCC,
which joined the Group only in October last year.

Earnings for the first half of 2007 were noticeably down on the company’s
expectations at the start of the year, with EBT of nearly EUR 0.1 million.
However, the second quarter showed a noticeably positive trend, with EBT of
EUR 1.2 million, compared to the first-quarter EBT of minus EUR 1.1
million).

Region by region, the company generated EBT of EUR 7.1 million in Europe
(first half of 2006: EUR 6.0 million). In the United States, in contrast,
Muehlhan posted a loss of EUR 4.3 million (first half of 2006: EUR plus 1.5
million). Asia, at minus EUR 0.3 million, is still slightly down on the
first
half of 2006 (EUR plus 0.5 million). The rest is attributable to central
divisions and consolidation.

Due to a weak first quarter, burdens arising from the US business and tax
expenses, Muehlhan finished the first half year of 2007 with a net result
after minority interests of minus EUR 2.6 million. Of this, minus EUR 0.8
million is attributable to the second quarter.

Outlook
As the year continues, the Muehlhan Group anticipates positive stimuli,
initially in the Asia region, to result from the consolidation of Muehlhan
China and further industry business in the Middle East. The company also
expects organizational changes in reporting and controlling processes to
impact positively on the Group earnings position. The Management Board
confirms the published sales and results forecasts in essence and regards
sales of EUR 185 to 205 million in 2007 as realistic. EBIT should be
between EUR 4 and 7 million and EBT between EUR 3 to 6 million. Overall,
depending mainly on results from the regions, consolidated net profit after
minority interests of EUR 1 to 3 million for the year is achievable.

For more detailed comments on the course of business and outlook, the
Executive Board refers you to the company’s interim report for the first
half of 2007, which has been published today.

Key Figures (in accordance with IFRS):
In kEUR 2007 First Half 2006 First Half
Sales 92,062 88,602
EBITDA * 4,037 8,255
EBIT ** 894 5,531
EBT *** 83 4,548
Earnings per share -0.13 0.13
Consolidated Result after Minority Interests -2,576 2,068
Cash flow 3,185 8,077
Investments 7,310 4,700
Depreciation 3,143 2,724

Balance Sheet Total 124,317 122,767
Short-term Assets 71,521 73,555
Fixed Assets **** 50,163 46,746
Equity 56,648 59,287

* EBITDA: Earnings before interest, taxes, depreciation and amortization
** EBIT: Earnings before interest and taxes
*** EBT: Earnings before tax
**** Fixed assets (IFRS): Total long-term assets less deferred tax claims

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. This includes protecting steel
surfaces of ships and of oil and gas rigs and platforms. The Muehlhan Group
is also active in the Industry Services segment, which 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 guarantees especially high quality and
efficiency in the removal of old coatings and rust, particularly in the
open sea. Muehlhan was established in 1881 in Hamburg and now employs
around 2,300 people in 31 subsidiaries around the world. In 2006, the
company generated revenue of EUR 184 million (IFRS). For further
information visit www.muehlhan.com

Press Contact:
Ties Kaiser
Muehlhan AG
Tel: +49 40 75271-156
E-mail: kaiser@muehlhan.com

DGAP 15.08.2007

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
Indices:
Listed: Freiverkehr in Berlin, Hamburg, München, Stuttgart; Entry
Standard in Frankfurt

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