Muehlhan AG

Earnings Release • Mar 31, 2009

News Details

Corporate | 31 March 2009 07:39

Muehlhan AG presents 2008 consolidated financial statements

Muehlhan AG / Final Results/Miscellaneous

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PRESS RELEASE

Muehlhan AG presents 2008 consolidated financial statements

* Preliminary sales and earnings figures confirmed
* Net income of EUR 4.3 million
* Group well positioned to face challenges

Hamburg, 31 March 2009 - Muehlhan AG (Entry Standard; ISIN DE000A0KD0F7)
has confirmed the preliminary figures for fiscal year 2008 that were
published on 2 March 2009: The company, which operates worldwide in the
industrial and maritime surface protection segments, generated sales
revenues of EUR 206.5 million in 2008. This represented a 5.3% increase
over the prior-year level (EUR 196.1 million). In 2008, Muehlhan reported
earnings before interest, taxes, depreciation and amortization (EBITDA) of
EUR 16.9 million (previous year: EUR 9.4 million). During the same period,
earnings before interest and taxes (EBIT) stood at EUR 9.9 million (2007:
EUR 2.8 million). Muehlhan AG posted total net income of EUR 4.3 million in
2008, making the fiscal year a successful one overall for the Group.

Once again, the European businesses proved that they could be counted on to
provide a reliable contribution to sales revenues. In the Ship Newbuilding
and Ship Repair segments, Muehlhan benefited from the continued high
capacity utilization at shipyards until the onset of the financial and
economic crisis. In the European Industry Services segment, the market for
scaffolding services and coatings for wind turbine towers was also stable.
While the Oil & Gas Offshore business segment further expanded its North
Sea business, it still has not achieved the desired level of profitability.
The Group posted total sales revenues in Europe of EUR 165.8 million
(previous year: EUR 156.8 million).

In Asia, Muehlhan was able to overcome the underutilization problem in the
Ship Repair segment at the Singapore location while landing its first major
coating contracts in the Ship Newbuilding segment in China. However, the
trend in our Asian businesses was particularly obvious in the positive
developments at our Middle Eastern subsidiaries: The company broke even in
Qatar only two years after starting up operations at the industrial
construction site in Ras Laffan. In the emirates of Dubai and Abu Dhabi,
Muehlhan likewise reported satisfactory sales and earnings trends in the
field of passive fire-proofing services. Muehlhan's 2008 Asian revenues of
EUR 18.8 million were significantly higher than the prior-year figure (EUR
12.4 million).

Restructuring efforts carried out during the previous year had a strongly
positive effect on earnings in the USA. Although sales revenues of EUR 21.8
million were lower than in the previous year (EUR 26.7 million), the
company managed to restore profitability in the remaining business.

The Company's most important financial key figures are contained in the
following table:
in kEUR Fiscal year 2008 Fiscal year 2007
Sales 206,508 196,092
Ship Newbuilding 69,165 65,710
Ship Repair 42,164 45,086
Oil & Gas Offshore 14,434 13,647
Industry Services 80,709 71,529
EBITDA 16,908 9,362
EBIT 9,891 2,861
Consolidated earnings
after minority interests 4,325 -73
Cash flow 14,858 9,364
Fixed assets 65,455 65,392
Equity 62,999 59,714
Balance sheet total 131,286 128,319
Employees 2,468 2,396

Prospects for Fiscal Year 2009
During the past two years, Muehlhan has completed major restructuring
efforts and entered important new markets. The Group has good to very good
growth prospects, particularly in the submarkets that are less dependent on
freight rates and maritime trade flows. Consequently, despite the altered
market situation and the global economic challenges facing the company, the
Executive Board believes that Muehlhan will achieve at least the same level
of sales and income in 2009 as we posted in 2008. Muehlhan therefore
expects sales of between EUR 200 and 220 million and EBIT of between EUR 9
and 12 million. As a result, consolidated after-tax income should be
between EUR 4 and 5 million.

For further information, please refer to the 2008 annual report, which will
be made available for download on the company's website today.

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(R) 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 has some 2,500 employees
around the world. For 2008 the company generated sales revenue of more than
EUR 206 million (IFRS). For further information visit
http://www.muehlhan.com

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

31.03.2009 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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