Muehlhan AG

Earnings Release • Nov 14, 2008

News Details

Corporate | 14 November 2008 08:20

Muehlhan AG presents quarterly results for the period ending on 30 September 2008

Muehlhan AG / Quarter Results/Interim Report

Release of a Corporate News, transmitted by DGAP - a company of EquityStory
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The issuer / publisher is solely responsible for the content of this announcement.

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• Sales for the first nine months of the year increased by EUR 12
million, to EUR 156.1 million

• EUR 5.1 million improvement in net earnings

• So far, the global economic downturn has had no negative impact on
operations

Hamburg, 14 November 2008 – Muehlhan AG (Entry Standard; ISIN
DE000A0KD0F7)posted sales of EUR 156.1 million for the first nine months of
the year,compared with EUR 143.4 million for the prior-year period.

A geographic breakdown of sales shows that Europe once again reported
strong revenues, of EUR 128.4 million (prior year: EUR 114.8 million). With
sales of EUR 16.6 million, the American operations turned in a slightly
weaker performance than in 2007 (EUR 20.1 million). Sales for Asia as a
whole were more than 26% higher than the EUR 8.7 million reported for the
first three quarters of 2007. In particular, the first-time consolidation
of the MCN and Procon subsidiaries caused sales through the end of
September 2008 to rise to EUR 11.0 million.

The Ship Newbuilding business segment – the traditionally strong core
business - contributed sales of EUR 53.4 million, which represented an
increase of just under 7% over the same period last year (EUR 50.0
million). This increase was driven primarily by the European - and
especially the German - subsidiaries. Ship Repair, another maritime
business segment, reported sales of EUR 32.7 million, slightly lower than
the prior-year figure of EUR 33.7 million because of the temporary
underutilization of the Singapore site. The Singapore order backlog for the
next two quarters has returned to normal. Muehlhan’s Oil & Gas Offshore
segment posted sales of EUR 10.7 million at the end of the 3rd quarter, up
from EUR 9.7 million last year. This increase of around 10% over the
prior-year figure was mainly attributable to the initiation of new projects
in the North Sea. Once again, the Industry Services business segment – with
its broadly diversified catalog of services ranging from surface protection
for wind generation facilities, steel bridges and industrial plants through
maritime and industrial scaffolding to steel ship construction services –
was the strongest business segment, reporting total sales of EUR 59.1
million (prior year: EUR 50.2 million), which represented a growth rate of
more than 17%.

Muehlhan also managed once again to expand the positive performance
demonstrated during the first half by its earnings before interest, taxes,
depreciation and amortization (EBITDA), increasing this figure from EUR 6.7
million (2007) to EUR 13.3 million. EBIT (earnings before interest and
taxes) improved to EUR 7.9 million, compared with just EUR 1.8 million last
year. Muehlhan’s EBT (earnings before taxes) of EUR 6.2 million, compared
with only EUR 0.5 million in 2007, likewise demonstrated the improvement in
profitability.

Consolidated earnings after minority interests for the first nine months of
fiscal year 2008 of around EUR 3.4 million (including EUR 1.3 million in
the 3rd quarter of 2008) were more than EUR 5.1 million higher than in 2007
(January – September 2007: EUR -1.7 million; 3rd quarter 2007 alone: EUR
0.8 million). Earnings per share of EUR 0.17 were around EUR 0.26 higher
than in the same period last year.

Outlook
In line with prior expectations (sales of EUR 200 to 215 million, EBIT of
EUR 9 to 12 million, after-tax income of between EUR 4 and 6 million), the
Executive Board is providing a more detailed forecast for the full year of
around EUR 200 million in sales, with earnings of EUR 9 to 10 million at
the EBIT level and after-tax income of EUR 4 to 5 million. Earnings from
the pending legal proceedings regarding asserted claims from the Golden
Gate Bridge project are not included, as the Executive Board no longer
expects a ruling to be issued this fiscal year.
Based on currently available information, the earnings for this fiscal year
will not be materially impacted by the crisis in the financial markets.

Table of key figures (in accordance with IFRS):

in kEUR First 9 months of 2008 First 9 months of 2007 3rd quarter of 2008
3rd quarter of 2007
Sales 156,138 143,405 51,601 51,343
EBITDA1 13,273 6,667 4,813 2,630
EBIT2 7,924 1,829 3,007 935
EBT3 6,215 514 2,433 431
Earnings per share (EUR) 0.17 -0.09 0.07 0.04
Consolidated earnings after minority interests 3,356 -1,738 1,337 838
Cash flow 13,309 5,816 5,466 2,631
Investments 5,449 10,612 2,617 3,302
Depreciation and amortization 5,349 4,838 1,806 1,695

in kEUR 30 Sept. 2008 31 Dec. 2007
Total assets 132,929 128,319
Current assets 64,079 58,695
Fixed assets4 65,074 65,392
Equity 64,620 59,714
Employees (average) 2,482 2,396

1 EBITDA: Earnings before interest, taxes, depreciation and amortization
2 EBIT: Operating income
3 EBT: Earnings before income taxes
4 Fixed assets: Total of long-term assets less deferred tax assets

NB: The complete report will be available for download at www. muehlhan.com
later this morning.

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. They include steel surfaces of
ships and of oil and gas rigs and platforms. The Muehlhan Group is also
active in the Industry Services segment, which, besides scaffolding for
marine and industry customers, 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 Hamburg in 1881 and employs some 2,400
employees around the world. In 2007 the company generated revenue of EUR
196 million (IFRS). For further information visit www.muehlhan.com.

Press contact: Ties Kaiser c/o Muehlhan AG, Phone +49 40 752 71 156, email:
kaiser@muehlhan.com

14.11.2008 Financial News transmitted by DGAP

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

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