Muehlhan AG

Earnings Release • Mar 31, 2008

News Details

Corporate | 31 March 2008 18:42

Muehlhan AG: Publishing of Financial Figures for 2007

Muehlhan AG / Final Results

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PRESS RELEASE

Muehlhan AG presents 2007 consolidated financial statements

• Preliminary figures from 28 February confirmed
• Strong second half at the earnings level
• Consistent course in place for good profitability during the current
fiscal year

Hamburg, 31 March 2008 – Muehlhan AG (Entry Standard; ISIN DE000A0KD0F7)
confirmed the key data for the 2007 fiscal year as published on 28 February
2008: The company, which is active around the world in the field of marine
surface protection, had sales of EUR 196.1 million in 2007. As such, the
company was 6.3% above the level of the previous year (EUR 184.4 million).
The Muehlhan Group, which has 36 subsidiary companies around the world, had
earnings before interest, taxes, depreciation and amortization (EBITDA) of
EUR 9.4 million (previous year: EUR 13.8 million). Earnings before interest
and taxes (EBIT) were EUR 2.8 million for the same period (2006: EUR 8.1
million). Despite a series of economic challenges and significant deficits
in the first half of 2007, the company can look back on a nearly balanced
bottom line for the year with net results of EUR -73 thousand.

Once again, sales for the Ship Newbuilding business division were of a
reliable volume. Muehlhan benefited from the generally good situation with
respect to orders, high capacity utilization and the full order books in
Europe. At the same time, the newbuilding segment was also characterised by
the withdrawal from some shipyard locations in Northern Europe, and
newbuilding weakness at American shipyards. All in all, Muehlhan had sales
in this field of EUR 65.7 million, which was approximately EUR 5.8 million
less that the previous year's level. In the Ship Repair business division,
Muehlhan profited from the beginning of a growth trend that promises
growing demand for repair work for the future as a result of the high level
of ship newbuilding activities of the past years and of the coming years.
In this field, the Group was able to register growth of 20.8% with sales of
EUR 45.1 million (previous year: EUR 37.3 million).

Totaling at EUR 13.6 million sales in the Oil & Gas business division
remained lower than the previous year's sales (EUR 17.6 million) despite
the expansion of business in the northern North Sea area. We were unable to
compensate for the decline in U.S. business in the Gulf of Mexico with the
new business in Europe. Things turned out well for the Industrial Services
business division. We were able to expand the division into the strongest
contributor of sales through the broad diversification of the service
offerings. Sales during the reporting period were EUR 71.5 million, and
thus a good 24.3% higher than those of same period last year (2006: EUR
57.5 million).

'All in all, we are satisfied that we have confirmed the turnaround in the
second half of 2007 through consistent structural adjustments,' said
Muehlhan's chairman of the board Dr. Andreas C. Krüger. 'As such, in our
opinion the course is set for sustained positive trend for profits in 2008
and subsequent years.'

The most important key company figures are set forth the following table:
In kEUR 2007 fiscal year 2006 fiscal year
Sales 196,092 184,389
EBITDA 9,362 13,878
EBIT 2,861 8,104
Net result for the year
after minority interests -73 3,646
Cash flow 9,364 13,930
Fixed assets 65,392 46,745
Equity 59,714 59,287
Balance sheet total 128,319 122,767
Employees 2,396 2,318

Outlook for 2008 fiscal year
The Executive Board is of the opinion that a noticeable increase in earning
power will be associated with the completion of the organizational and
structural measures. If the market conditions, which are still good, are
taken advantage of in an appropriate manner, sales of between EUR 200 and
215 million are realistic for 2008. The Executive Board expects EBITDA in a
range from EUR 16 to 19 million, and EBIT of between EUR 9 and 12 million.
The Executive Board expects after-tax profits to fall in a range between
EUR 4 and 6 million. Despite a refreshingly strong start for the year,
significant portions of profit are earned in the second and third quarter
as a result of the seasonal trend.

For more information, the company makes reference to the 2007 Annual
Report, which is today being provided for download at the company's
website.

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.

Ties Kaiser
Muehlhan AG
Phone: +49-40-75271-156
Email: kaiser@muehlhan.com

31.03.2008 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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