Masterflex SE — Earnings Release 2009

Nov 5, 2009

News Details

Corporate | 5 November 2009 08:01

Masterflex AG reports nine-month figures for 2009

Masterflex AG / Quarter Results/Miscellaneous

05.11.2009

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PRESS RELEASE

Masterflex AG reports nine-month figures for 2009

• Concentration on High-Tech Hose Systems - restructuring of the Group
  driven forward

• Strict cost management cushions economic crisis, positive operating
  EBIT

• Cash flow remains significantly positive

• Sale of Angiokard Medizintechnik GmbH & Co. KG

Continuing operations

IFRS 30.09.2009 30.09.2008 +/-

Revenue (EUR thou.) 53,988 67,632 -20.2%

Consolidated EBITDA (EUR thou.) 2,917 8,712 -66.5%

Consolidated EBIT (EUR thou.)

Not including restructuring costs 300 4,491 -93.3%

Including restructuring costs -1,718 4,217

Consolidated EBT (EUR thou.) -4,588 -3,908

Group net income

after minority interests -3,426 -1,160 195.3%

Earnings per share (EUR) -0.76 -0.65 16.9%

Consolidated EBIT margin

Not including restructuring costs 0.6% 6.6%

Including restructuring costs -3.2% 6.2%

Consolidated net return on sales -6.3% -1.7%

Employees 678 752 -9.8%

    30.09.2009 31.12.2008 +/-

Shareholders' equity 11,284 14,840 -24.0%

Total assets 86,350 101,475 -14.9%

Equity ratio 13.1% 14.6% -10.3%

Gelsenkirchen, 5 November 2009 In the first nine months of 2009, Masterflex
AG pressed ahead with its policy of refocusing on its core High-Tech Hose
Systems business unit. An agreement on the sale of Angiokard Medizintechnik
GmbH & Co. KG was signed after the end of the reporting period with closing
expected by the end of 2009.

The development of the Group's operating business in the first nine months
of 2009 was dominated by the economic crisis. At EUR54.0 million,
consolidated revenue was down 20.2% year-on-year. Revenue in the core
High-Tech Hose Systems business unit has stabilised at the level of the
previous quarters, but remains lower than in the previous year. However,
there have been clear signs of a recovery in certain sub-segments of the
core business since late summer.

While the Mobility business unit enjoyed largely positive, stable revenue
development, revenue and earnings were down substantially on the previous
year in Surface Technology, having a significant adverse effect on the
Group's earnings development.

Consolidated operating earnings before interest and taxes (EBIT) developed
well in spite of the strict cost management and the downturn in revenue,
though this effect was countered by the high costs of restructuring and
refinancing. Operating EBIT amounted to EUR0.3 million, or EUR-1.7 million
after adjustment for restructuring effects. This includes the EUR1.5
million reduction in inventories, which had a positive effect on liquidity,
as well as legal and consultancy fees in the amount of EUR1.4 million.
Masterflex AG's efficiency and the success of its measures aimed at
boosting liquidity are reflected in the operating cash flow of EUR3.6
million generated as of 30 September 2009.

The systematic disposal of non-core activities that do not offer synergies
with the Group's core High-Tech Hose Systems business unit, strict cost
management and positive cash flows made important contributions towards
reducing the Group's debt position. Together with its finance partners,
Masterflex AG is aiming to effect a significant restructuring of its
borrowing by no later than summer 2010. This expressly includes options to
sustainably improve its equity situation.

After the first nine months of 2009, Masterflex AG is ahead of its targets
for both operating EBIT and EBIT for the Group as a whole - which includes
all restructuring expenses. Given the general economic situation, it is
difficult to forecast further business development. However, in light of
the success of the restructuring and the implementation of the core
business strategy as well as the initial indications that the economy as a
whole is stabilising, the Executive Board of Masterflex expects to achieve
a positive operating EBIT in 2009, albeit at a low level and not without
risk. The Executive Board is also forecasting a further improvement in
earnings performance in the coming year.

The nine-month 3/2009 report is available for download at the homepage
www.masterflex.de.

Further information: Masterflex AG, Investor Relations, Willy-Brandt-Allee
300, D-45891

Gelsenkirchen, stephanie.kniep@masterflex.de, Tel. +492099707744, Fax
+492099707720

Company information:

In its core High-Tech Hose Systems business, Masterflex AG is a specialist
for the worldwide development and production of high-quality connector and
hose systems using innovative high-tech plastics. Since its establishment
in 1987, the company has developed a high level of materials and processing
expertise. Masterflex deals with the entire process chain, from the
application of materials, through the development of its own manufacturing
processes with self-constructed machinery, right through to the production
and distribution of its products. With seven locations in Europe and the
USA, the company produces and distributes High-Tech Hose Systems for a wide
range of industrial applications, from the extraction of extremely abrasive
materials to suction of chemicals and hot air. Masterflex AG also operates
in the areas of Medical Technology, Fuel Cell Technology/Climate-Neutral
Mobility (Mobility) and Surface Technology (Advanced Material Design).
Masterflex AG also operates in the areas of Mobility and Surface Technology
(Advanced Material Design). The Medical Technology business area will be
discontinued as of the end of 2009.

05.11.2009 Financial News transmitted by DGAP

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Language: English
Company: Masterflex AG
Willy-Brandt-Allee 300
45891 Gelsenkirchen
Deutschland
Phone: +49 (0)2099 70 77-44
Fax: +49 (0)2099 70 77-20
E-mail: stephanie.kniep@masterflex.de
Internet: www.masterflex.de
ISIN: DE0005492938
WKN: 549 293
Indices: Prime all share
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, München, Hamburg, Stuttgart

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