Muehlhan AG

Earnings Release • Nov 15, 2012

News Details

Corporate | 15 November 2012 10:41

Muehlhan AG: Quarterly results 3-2012

Muehlhan AG / Key word(s): Quarter Results/Development of Sales

15.11.2012 / 10:41

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PRESS RELEASE

Muehlhan publishes figures for the first nine months of 2012
* Very positive sales performance
* Sharp increase in business in the Repair and Energy sectors
* Operationally successful third quarter of 2012 yields net income of EUR
1.0 million

Hamburg, 15 November 2012 - In the third quarter of 2012, Muehlhan AG
(Entry Standard; ISIN DE000A0KD0F7) reported sales of EUR 47.9 million and
operating profit (EBIT) of EUR 2.3 million, thereby exceeding the figures
for the same period last year (sales of EUR 45.7 million and EBIT of EUR
1.9 million). For the year to date, sales stood at EUR 137.8 million,
around 9 percent higher than in the prior-year period (EUR 126.4 million).
Despite the charges at the beginning of the year, EBIT for the first nine
months totaled EUR 4.2 million, almost the same as for the first nine
months of 2011 (EUR 4.3 million). Because of a slight increase in financing
costs, the consolidated profit attributable to the equity holders decreased
from EUR 1.4 million to EUR 1.2 million.

The lion's share of sales revenues for the first nine months (EUR 110.5
million) was generated by the European business. This represented a 12%
increase (January-September 2011: EUR 98.7 million), demonstrating the
Group's success in significantly expanding the volume of business in this
region. This was also reflected in the European region's earnings, which
jumped 42 percent from EUR 6.7 million in the first nine of months of 2011
to EUR 9.5 million in the first nine months of 2012.

Meanwhile, the renewed difficulties in the North American businesses seen
early in the year continued over the course of the year. Sales of EUR 13.0
million were below the prior-year figure of EUR 15.2 million. The segment's
positive contribution to earnings during the prior year (2011 EBIT: EUR 2.4
million) likewise could not be repeated: the start-up problems at a new
wind-energy subsidiary reported during the first quarter of 2012 and the
trouble at a subsidiary working in the shipbuilding industry on the Gulf of
Mexico led to a loss of EUR - 0.9 million by the North American businesses.
Traces of these charges could still be seen in the earnings figures, even
though the wind-energy businesses were sold effective 31 July and the
subsidiary on the Gulf of Mexico has now been shut down.

After a decline in sales during the previous year (EUR 11.8 million), sales
in the Asian Region, including the Middle East, rose to EUR 14.2 million.
Due to persistent capacity utilization problems that lasted until mid-year,
the Group once again reported a net loss of around EUR - 1.1 million (2011:
EUR - 1.2 million).

As expected, sales in the Ship Newbuilding division declined further to
just under EUR 21.8 million, compared with EUR 28.9 million for the
prior-year period. For the year to date, our main focus in this area has
been on building megayachts in Germany. By contrast, sales in the Ship
Repair segment increased from EUR 23.9 million to EUR 31.6 million, an
improvement of more than 30 percent. In the Netherlands, in particular, we
significantly exceeded our business forecasts.
The Energy business reported EUR 33.1 million in sales through the end of
the third quarter of 2012, an increase of around 24 percent (previous year:
EUR 26.8 million). Among other things, this positive trend was attributable
to higher petrochemical sales and an increase in business with customers in
the oil and gas industry.
Muehlhan's Industry business, which primarily includes bridge-coating,
passive fire-proofing and other surface-protection services, reported an
increase of approximately 18 percent in sales, from EUR 21.1 million for
the first nine months of 2011 to EUR 25.0 million in the first nine months
of 2012. Declines in the bridge and fire-proofing businesses were more
than offset by substantial increases in our business with other industrial
customers.
The Other Services sector (steel construction, scaffolding and access
services) also posted a further increase this year, with sales rising from
EUR 24.9 million in the first nine months of 2011 to EUR 27.2 million in
the first nine months of 2012.

Outlook
Thanks to the diversification strategy followed for the last several years,
growth in the non-shipbuilding business segments is now greater than losses
from the migration of the ship newbuilding industry. Although, based on
current information, Management expects figures for the fourth quarter to
be fairly low, it is maintaining the guidance issued at the beginning of
the year (sales of between EUR 150 and 175 million and EBIT of between EUR
4 and 7 million).

Key figures:
in kEUR First 9 months of 2012 First 9 months of 2011 3rd quarter of 2012
3rd quarter of 2011
Sales 137,838 126,424 47,913 45,674
EBITDA 8,805 8,685 3,791 3,382
EBIT 4,153 4,298 2,321 1,921
EBT 2,470 2,893 1,810 1,421
Earnings per share (EUR) 0.06 0.07 0.06 0.05
Consolidated earnings after non-controlling interests 1,177 1,392 1,042 868
Cash flow 8,307 8,270 3,202 3,926
Investments for fixed assets 3,831 4,753 1,165 2,444
Depreciation and amortization 4,652 4,387 1,470 1,461

in kEUR 30 September 2012 31 December 2011
Balance sheet total 111,663 112,243
Fixed assets 41,918 44,908
Equity 58,887 57,062
Employees 2,180 2,131

1 EBITDA: Operating profit plus depreciation, 2 EBIT: Operating profit
(EBIT), 3 EBT: Earnings before taxes; 4 Fixed assets: Total of non-current
assets less deferred tax assets; 5 Average number of employees over entire
reporting period

About Muehlhan:
Worldwide, the Muehlhan Group is a reliable partner in industrial services
and high-quality surface protection.
As one of the few full-service providers, we offer our customers a broad
range of services designed to meet the exacting quality standards expected
in professional industrial services. Our customers benefit from our
exceptional organizational skills, the technical expertise that
differentiates us from our competitors and our more than 130 years of
experience.
Our operations are divided into five business segments: Ship Newbuilding,
Ship Repair, Energy, Industry and Other Services. With our workforce of
more than 2,100 employees at around 40 locations worldwide, we generated
sales revenues of EUR 172 million in 2011.
We intend to use this stable foundation to further expand our business in
the coming years and to continue moving our company forward through
proximity to our customers in the global market.
For more information, please visit www.muehlhan.com

Press contact: Ties Kaiser, Muehlhan AG; Tel: +49 40 75271 -156; e-mail:
kaiser@muehlhan.com

End of Corporate News

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Language: English
Company: Muehlhan AG
Schlinckstrasse 3
21107 Hamburg
Germany
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, Düsseldorf, Hamburg, München,
Stuttgart; Open Market (Entry Standard) in Frankfurt

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193337 15.11.2012