KROMI Logistik AG — Earnings Release 2012

Sep 13, 2012

News Details

Corporate | 13 September 2012 08:00

KROMI Logistik AG publishes 2011/2012 annual report

KROMI Logistik AG / Key word(s): Final Results/Forecast

13.09.2012 / 08:00

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• Revenue up 37.3 % to EUR 52,465 thousand
• Return to profitability realised (EBIT: EUR 168 thousand)
• EBIT burdened by EUR 538 thousand of non-cash-effective valuation changes
  necessitated by IFRS accounting
• Company targets marked and profitable revenue growth for FY 2012/13

Hamburg, September 13, 2012 - KROMI Logistik AG, the provider of end-to-end
tool logistics solutions for manufacturing companies, has today published
its complete report for the 2011/2012 fiscal year (as of June 30). The
company was successful in significantly further expanding the 22.5 %
revenue growth it realised in the previous year. A 37.3 % increase was
achieved, with revenue at EUR 52,465 thousand (previous year: EUR 38,213
thousand). The strong operating business growth was mainly due to the
company's consistent growth strategy, focusing more on internationally
active major customers last year, thereby making KROMI's business less
dependent on individual regional markets. The continued favourable economy,
especially at the start of the year, also catered for high demand for
KROMI's services. Despite the considerable business growth and related
investments in the Group's further expansion, the company consequently
succeeded in reporting a return to profitability. Earnings before interest
and tax (EBIT) amounted to EUR 168 thousand (previous year: EUR -1,054
thousand).

When adjusting for additional expenses on pension funds arising from
unrealised valuation losses (EUR 283 thousand), and on currency translation
(EUR 255 thousand), the Group generated EUR 706 thousand of earnings from
its pure operating business. KROMI reported earnings before tax (EBT) of
EUR 111 thousand, following EUR -1,074 thousand in the prior year. After
deducting EUR 321 thousand of income taxes, consolidated net income stood
at EUR -210 thousand, compared with EUR -1,068 thousand in the previous
year.

Full order books at KROMI's customers catered for continued high demand for
precision tools, particularly at the start of the year. Although the first
signs of a cooling-down were observable in KROMI's important customer
sectors at the end of the period under review, continued stable
fourth-quarter revenue reflects the customer structure's robustness and
diversity. Growth in the operating business also fed through to a higher
level in the cost of materials, which increased from EUR 28,344 thousand to
EUR 39,170 thousand. At the same time, the cost of materials ratio rose
only slightly from 74.2 % in the previous year to 74.7 %. Staff costs rose
from EUR 6,041 thousand to EUR 7,599 thousand due to higher staff numbers
and valuation adjustments to pension provisions. Other operating expenses
also posted a marked increase from EUR 5,072 thousand to EUR 5,946
thousand, partly due to additional foreign currency translation charges.

'KROMI Logistik looks back on a high-growth 2011/2012 fiscal year. We
benefitted from our customers' high production levels, especially in the
first half of the year. Customers from the general mechanical engineering
and automotive supply sectors, which are achieving new record results on
global markets, remained important pillars. Our policy of increasingly also
supplying internationally active, large-scale machining groups with tools
at various sites continues to bear fruit as a consequence,' was how Jörg
Schubert, CEO of KROMI Logistik AG commented on the business growth. 'The
fact that we already generate 34 % of our sales revenue with customers
abroad provides further evidence of our internationalisation strategy's
success,' he went on to add.

For the Managing Board, this growth is also the result of the parent
company's normal business operations. The EUR 1,198 thousand result which
was reported, and which also played a significant role in taxation at Group
level, again documents KROMI Logistik AG's profitable growth in the fiscal
year elapsed. In the previous reporting period, the company reported a EUR
126 thousand loss in this context.

Along with the economy, and consequently existing customers' production
levels, a primary decisive factor will also be the processing of more
complex customer structures which accompany the Group's growing
internationalisation.

Despite the continued uncertainty on financial markets, KROMI Logistik
assumes that the growth dynamism will continue during the 2012/13 fiscal
year which is already underway. 'Although production planning conveyed by
customers is currently somewhat moderate for the coming months, we do not
anticipate a sharp slowdown in the generally positive trend within the tool
management business. As a consequence, the Managing Board is assuming that
it will again achieve significant sales revenue growth in the double-digit
percentage range in the 2012/2013 fiscal year,' noted CFO Uwe Pfeiffer,
providing an outlook on the company's future trend. 'Should our customers'
production levels continue to develop steadily, we are aiming to report a
further increase in our EBIT margin in the current fiscal year as part of
our gradual, profitable growth strategy. As a consequence, the EBIT margin
will prospectively remain within the lower single-digit percentage range,'
Pfeiffer went on to add.

Over the course of the day, KROMI Logistik AG will make its full IFRS
consolidated financial statements for the 2011/2012 fiscal year available
for downloading on its website at www.kromi.de within the Investor
Relations area.

Company profile:
KROMI Logistik AG offers manufacturing companies end-to-end outsourcing for
their supply of precision machining tools, both in Germany and abroad. The
company focuses on technically advanced machining tools for metalworking
and plastics (consumable and cutting tools, e.g. drills). KROMI combines
conventional tool retailing with a decentralised tool supply system that
includes output machines in the customer's production area and an IT-based
tool management and controlling system. KROMI's aim is to sustainably
optimise the supply of resources (particularly tools) for its customers and
to secure the availability of the appropriate resources at the right time
and in the right place. The company is currently represented at five
locations in Germany and four abroad (Slovakia, Czech Republic, Brazil and
Spain), and is active in five other European countries. To date, KROMI has
primarily focused on customers in the machine engineering, automotive
suppliers and aerospace sectors as well as marine engine construction.

Visit us online at: www.kromi.de

Investor Relations Contact:

cometis AG
Henryk Deter / Janis Fischer
Tel.: +49 (0)611-205855-64
Fax: +49 (0)611-205855-66
E-mail: fischer@cometis.de

End of Corporate News

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Language: English
Company: KROMI Logistik AG
Tarpenring 11
22419 Hamburg
Germany
Phone: 040/537151-0
Fax: 040/537151-99
E-mail: info@kromi.de
Internet: www.kromi.de
ISIN: DE000A0KFUJ5
WKN: A0KFUJ
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, München,
Stuttgart

End of News DGAP News-Service

185099 13.09.2012