Bechtle AG — Earnings Release 2010

Mar 17, 2011

News Details

Corporate | 17 March 2011 10:30

Bechtle AG sees new record values in 2010

Bechtle AG / Key word(s): Final Results/Dividend

17.03.2011 / 10:30

Bechtle AG sees new record values in 2010

– Revenue grows by 25 per cent to 1.72 billion euros

– EBT reaches 61.8 million euros, 42 per cent above prior year

– Dividend up 25 per cent to 0.75 euros

– Optimistic outlook for 2011

Neckarsulm, 17 March 2011 – In the fiscal year 2010, Bechtle AG generated record revenues of 1.72 billion euros. Revenues increased by 24.9 per cent from 1,379.3 million euros in the prior year to 1,722.9 million euros in the reporting period. Earnings before taxes climbed by 41.5 per cent to 61.8 million euros, thus surpassing the previous record from 2008. Compared to the industry average, the EBT margin again scored an excellent 3.6 per cent (prior year: 3.2 per cent). Earnings per share increased by 34.8 per cent to 2.21 euros, compared to 1.64 euros in the prior year. In line with the fine business performance, the dividend, too, is to be increased substantially from 0.60 euros in the prior year to 0.75 euros for the fiscal year 2010.

'With growth of 25 per cent, Bechtle AG performed much better than the IT market in general. We benefited greatly from the positive economic development in 2010, and we made good use of our business opportunities. Once more, the marked increase in market shares underscores our claim of being the leading IT partner for industry and public sector clients', says Dr. Thomas Olemotz, Chairman of the Executive Board of Bechtle AG.

IT system house & managed services segment revenue passes one billion mark

With revenue of 1,151.1 million euros (prior year: 920.0 million euros), the IT system house & managed services segment of Bechtle AG has surpassed the one billion euro mark by a considerable amount. The growth amounts to 25.1 per cent. The good competitive position and continuous qualification measures for sales staff were among the factors that contributed to this result. Organically, the revenue in this segment amounted to 1,121.6 million euros, 21.9 per cent more than in the prior year.

In 2010, the EBIT in the IT system house & managed services segment surged by 39.1 per cent to 35.9 million euros (prior year: 25.8 million euros). This was due to the increase in gross profit and the disproportionately low development of functional costs. The EBIT margin improved from 2.8 per cent to 3.1 per cent. This positive development mainly reflects the good employment situation and the associated productivity increase in the fiscal year just ended.

Profitable growth in IT e-commerce segment

Revenue in the IT e-commerce segment increased by 24.5 per cent to 571.8 million euros (prior year: 459.4 million euros) and is attributable exclusively to organic growth. In this context, the recruitment of new sales staff in the international subsidiaries and various qualification measures proved to be particularly effective. Following a good start to the year, dynamism in the trading segment increased impressively once again in the last two quarters.

In the trading segment, Bechtle benefited from its customers' willingness to invest, achieving an EBIT of 24.9 million euros, 46.8 per cent more than in the prior year (16.9 million euros). This was balanced by the start-up costs of several new international subsidiaries. Despite these investments in further internationalisation, the EBIT margin in IT e-commerce increased tangibly to 4.4 per cent, compared to 3.7 per cent in the prior year.

Solid balance sheet structure and considerably higher cash flow

The balance sheet figures of the Bechtle Group point to a solid assets position and financial structure. Cash and cash equivalents including time deposits and securities increased by 36.6 per cent from 95.0 million euros to 129.8 million euros. In the reporting period, equity increased by 10.9 per cent from 335.0 million euros to 371.5 million euros. Due to the balance sheet extension, the equity ratio dropped from 64.3 per cent to 56.8 per cent in the reporting period. However, due to the higher earnings after taxes, the return on equity improved to 14.2 per cent (prior year: 11.3 per cent). Compared to the prior year, the cash flow from operating activities increased by 11.8 million euros from 47.3 million euros to 59.1 million euros.

Attractive dividend

Since its IPO, Bechtle has regularly shared its profit with its shareholders. The company puts a lot of emphasis on the continuity of the dividend policy. Therefore an attractive dividend is to be paid out this year, too. For the fiscal year 2010, the Executive Board and the Supervisory Board propose to the Annual General Meeting that 0.75 euros per share be paid out. This represents a dividend increase of 0.15 euros per share compared to the prior year, an increase of 25.0 per cent. In relation to the much higher annual closing price, the dividend yield is 2.6 per cent (prior year: 3.2 per cent).

Notable increase in employee numbers

As of 31 December 2010, the Bechtle Group had a total of 4,766 employees, corresponding to 412 persons or 9.5 per cent more than in the prior year. The increase is the result of acquisitions as well as new recruitment. As of the end of the year, Bechtle had 3,471 employees (prior year: 3,158) in Germany. The number of employees in other countries increased from 1,196 to 1,295. In the IT system house & managed services segment, the headcount went up from 3,443 to 3,763. The number of employees in the IT e-commerce segment amounted to 1,003 (prior year: 911).

Optimistic Outlook for 2011

In view of the ongoing good economic situation, the continuously bright mood indicators and the excellent competitive position of Bechtle AG, the Executive Board expects business performance to be successful and above the industry average this year, too. In the IT system house & managed services segment, acquisitions will remain an integral element of the growth strategy. In IT e-commerce, the Executive Board mainly focuses on organic growth and plans to enter additional countries in the coming years. The next step planned for 2011 is the expansion to Hungary.

'We have made a good start to the new year. We are optimistic for the current fiscal year, and we are confident that we will be able to keep Bechtle AG on its profitable growth path in 2011', explains Dr. Thomas Olemotz.

		2010	2009	Change
Revenue	th. euros	1,722,919	1,379,307	+24.9%
Domestic	th. euros	1,158,213	921,578	+25.7%
Abroad	th. euros	564,706	457,729	+23.4%
IT system house & managed services	th. euros	1,151,119	919,956	+25.1%
IT e-commerce	th. euros	571,800	459,351	+24.5%
EBIT	th. euros	60,728	42,712	+42.2%
IT system house & managed services	th. euros	35,852	25,768	+39.1%
IT e-commerce	th. euros	24,876	16,944	+46.8%
EBT	th. euros	61,784	43,662	+41.5%
EBT margin	%	3.6	3.2
Earnings after taxes	th. euros	46,422	34,258	+35.5%
Earnings per share	euros	2.21	1.64	+34.8%
Cash flow from operating activities	th. euros	59,114	47,330	+24.9%
Cash and cash equivalents*	th. euros	129,750	94,977	+36.6%
Equity ratio	%	56.8	64.3
Number of employees as of 31 Dec.		4,766	4,354	+9.5%

* Including time deposits and securities

End of Corporate News

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Language:	English
Company:	Bechtle AG
	Bechtle Platz 1
	74172 Neckarsulm
	Deutschland
Phone:	+49 (0)71 32/ 9 81-0
Fax:	+49 (0)7132/ 9 81 – 8000
E-mail:	ir@bechtle.com
Internet:	www.bechtle.com
ISIN:	DE0005158703
WKN:	515870
Listed:	Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart

End of News	DGAP News-Service

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115469  17.03.2011