Bechtle AG — Earnings Release 2006

Aug 11, 2006

News Details

Corporate | 11 August 2006 06:30

Bechtle AG revenues and earnings rise during first half-year

Corporate news transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. —————————————————————————— Revenues up 8.5 percent / EBT up 9.1 percent / strategic measures slated / estimates for full year reiterated Neckarsulm, 11.08.2006 – Bechtle AG has posted revenues and earnings above the market average for the first half of the year, a period typically weaker for the industry, reiterating its estimates for the full year. Consolidated revenues rose for the IT service and sales company by 8.5 percent to 574.8 million euros. Adjusted for acquired acquisition, consolidated revenues for the first half-year came in unchanged year-on-year. Bechtle’s domestic revenues attributed 65.5 percent. The IT specialist posted substantially higher profits. Earnings before interest and taxes (EBIT) increased by 8.0 percent to 14.1 million euros (prev. yr. 13.1 million euros). Consolidated earnings before taxes (EBT) were up by 9.1 percent versus last year’s figure of 13.1 million euros to 14.3 million euros. Pre-tax (EBT) return on sales was unchanged at 2.5 percent. The tax ratio improved slightly versus the same period prior from 35.9 to 34.9 percent, with earnings after taxes rising 11.0 percent from 8.4 million euros to 9.3 million euros. Earnings per share came out at 0.44 euros versus 0.40 euros for the first half of last year (up 11.2 percent). “We are absolutely satisfied with our results for the first half of 2006 in that we continued to improve our operating results while implementing a number of strategic and structural realignments. It says a lot about Bechtle that we are able to move forward on integrating new companies at the same time as we are positioning ourselves for future growth, simultaneously making money,” said Ralf Klenk, CEO of Bechtle AG. “We are right on track for our estimates for 2006 and are sure of our ability to efficiently execute on our plan for the remainder of the year. We thus confirm our estimates for the full year.” Both business segments contribute to growth IT System House segment, the larger of the Group’s two business segments, exceeded last year’s revenues by 5.1 percent from 361.3 million euros to 379.9 million euros as a result of acquisition activity. Bechtle’s 60 IT System House units contributed 66.1 percent of total revenues. The EBIT were up by 8.5 percent to 3.7 million euros (prev. yr. 3.4 million euros). EBIT margin was 1.0 percent, coming after 0.9 percent for the same period last year. Segment results were in particular impacted by higher costs associated with building up industry- and service-focused distribution structures as well as continued price competition in the IT service business. In IT e-commerce Bechtle showed a solid 15.6 percent rise in revenues up to 194.9 million euros. EBIT increased by 7.9 percent to 10.5 million euros, for an EBIT margin of 5.4 percent (prev. yr. 5.8 percent). In its direct business Bechtle again succeeded in countering pressure on margins affecting the IT market by achieving high process efficiency. Balance sheet and asset structure remain strong As of 30 June 2006, the equity ratio was 62.9 percent as compared to 60.3 percent at the end of the first half of the year 2005. Return on equity improved slightly from 3.9 to 4.0 percent. Including 42.9 million euros in available borrowing limits Bechtle has a solid liquidity reserve of 73.5 million euros, providing a comfortable means for financing the future growth of the Group. Operating cash flow more than doubled in the first half from 4.1 million euros up to 8.9 million euros as trade receivables were collected at a much faster pace than in the year prior. Ambitious targets in a difficult market environment Bechtle’s results for the first half-year put the Group on track for the year as a whole. Revenues for 2006 are projected to rise by six to ten percent up to 1.25 to 1.30 billion euros, significantly ahead of the market rate. “Currently there is no real momentum in our industry. The optimistic expectations voiced at the start of the year have now been somewhat dampened. The seasonality of our business also injects an element of uncertainty into our projections, typically involving a final spurt towards the close of the year. It is entirely open at this point as to whether there may be a repeat of the outstanding business performance seen in December 2005,’ said Mr. Klenk. The management continues to expect consolidated EBT to reach last year’s level. “In view of the further scheduled implementation of the adopted strategy measures – and the appertaining detrimental effect on the result, projected EBT of just over 41 million euros is an ambitious goal, but a thoroughly realistic one,’ said Klenk. With the current re-organisation of its managerial structure and the system houses’ orientation towards higher quality services (Managed Services), Bechtle aims to increase its turnover to an intended 2 th. million euros by 2010 with simultaneous rise in profitability. *** Note for analysts and journalists: In today’s conference call, CEO Ralf Klenk and CFO Stefan Sagowski will be discussing and taking questions on the company’s business results, the current status of strategic measures being implemented and estimates for the full year. The conference call for analysts starts at 8:30 am, the one for journalists at 10:30 am (CET). To participate, dial into +49 (0) 69 58999 0507 shortly before the conference starts. Results for the 2nd quarter and 1st half of the year at a glance in TEUR Q2/2006 Q2/2005 H1 2006 H1 2005 Change H1 Revenues 283,756 275,065 574,756 529,813 + 8.5% Domestic 185.520 180.874 376.731 354.280 + 6,3% Abroad 98.236 94.191 198.025 175.533 + 12,8% IT system house 189,374 189,491 379,905 361,328 + 5.1% IT e-commerce 94,382 85,574 194,851 168,485 + 15.6% EBITDA 8,674 8,176 20,478 18,728 + 9.3% EBIT 5,482 4,990 14,144 13,093 + 8.0% IT system house 1,692 999 3,675 3,386 + 8.5% IT e-commerce 3,790 3,991 10,469 9,707 + 7.9% EBT 5,547 5,029 14,324 13,124 + 9.1% Earnings after 3,541 3,313 9,330 8,407 + 11.0% taxes EPS (in euros) 0.17 0.16 0.44 0.40 + 11.2% Equity ratio (%) 62.9 60.3 + 4.3% No. of employees (as 3,861 3,664 + 5.4% of 30.06.) The complete half-year report is available on the internet for download in German and English versions at www.bechtle.com. Bechtle AG, Corporate Communications, Sabine Emich, Bechtle Platz 1, 74172 Neckarsulm, Phone: +49 (0)71 32/ 981-4115, Fax: -4116, E-mail: sabine.emich@bechtle.com, www.bechtle.com (c)DGAP 11.08.2006 ————————————————————————— Language: English Issuer: Bechtle AG Bechtle Platz 1 74172 Neckarsulm Deutschland Phone: +49 (0)71 32/ 9 81-0 Fax: +49 (0)7132/ 9 81 – 80 E-mail: ir@bechtle.com WWW: www.bechtle.com ISIN: DE0005158703 WKN: 515870 Indices: Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin-Bremen, Hannover, Düsseldorf, Hamburg, München, Stuttgart End of News DGAP News-Service —————————————————————————