OHB SE — Earnings Release 2005

Aug 11, 2005

News Details

Corporate | 11 August 2005 07:00

OHB Technology AG: OHB Technology AG improved margins in H1 2005

Corporate-news transmitted by DGAP. The issuer is solely responsible for the content of this announcement. —————————————————————————— OHB Technology AG improved margins in H1 2005 Earnings per share of 16 cents at the previous year’s level despite lower total revenues Growth strategy continued through acquisition of MAN Technologie Telematics return figures and margins are at a new record level Bremen, August 11, 2005. The OHB Technology AG Group (Prime Standard, ISIN: DE0005936124) also increased profitability in the second quarter 2005. The higher value-added share of OHB with individual projects was a major driver of the again higher profitability. Q2 2005 sales and total revenues increased over the traditionally weak first quarter of EUR 12.5 million and EUR 14.7 million by some 39 % and 25 %, respectively. However, with EUR 17.4 million and EUR 18.3 million, both figures remained a good EUR 10 million below their previous year’s values (EUR 27.7 million and EUR 28.2 million, respectively). This was due to billing. The deviations of 2005 sales and total revenues in the half-year comparison were quite similar: 2005 sales of EUR 29.8 million compared to EUR 40.6 million in 2004 and total performance of EUR 33.0 million in 2005 compared with EUR 43.0 million for 2004. In H1 2005, the Group generated EBITDA of EUR 4.7 million (previous year EUR 4.9 million) and EBIT of EUR 3.0 million (previous year EUR 3.4 million). These figures, which fell slightly short of the previous year’s values in absolute terms, result in strongly improved margins due to the significantly lower total performance. The EBITDA margin reached 14.1 % compared to 11.3 % in the previous year and 9.2 % (previous year 7.8 %) based on EBIT. The result before income taxes (EBT) of EUR 3.6 million (previous year EUR 3.8 million) traditionally lies above the level of EBIT due to interest income. The H1 net income marginally increased to EUR 2.3 million and yields earnings per share of EUR 0.16 as in the same period of the previous year. The Group’s decline in cash and cash equivalents by some EUR 22.7 million to EUR 36.0 million at the end of H1 compared to year-end 2004 is primarily a result of order-related project development and execution. In H1 2005, this mainly resulted in a settlement of trade accounts payable and the execution of advance payments received. Firm orders as of June 30, 2005 were valued at EUR 111.4 million (previous year EUR 159.0 million) and were thus virtually unchanged from the volume reported for the previous quarter as well as for the end of 2004 (EUR 110.8 million). This does not include the add-on contract worth EUR 17.9 million for SAR-Lupe IT security, as the agreement had been formally signed at the beginning of August. Together with the technology holding company Apollo Capital Partners GmbH, Munich, OHB Technology AG purchased all shares of MAN Technologie AG, Augsburg, today MT Aerospace AG, in June 2005. This becomes retroactively effective as of January 1, 2005. MT Aerospace AG should be consolidated for the first time in the Group figures of OHB Technology AG in the third quarter 2005. In 2004 the company generated sales of some EUR 100 million. With this investment OHB Technology AG further expands its position as the leading German aerospace company and thereby implements its growth strategy in the core business areas as planned. Particularly the orbital and transport systems segment of our strongest division, Space Technology + Security, will be significantly expanded through MT Aerospace AG. This division continues to dominate Group performance with unconsolidated total revenues of EUR 28.7 million (previous year EUR 38.7 million) in H1 2005. EBIT of EUR 2.4 million (previous year EUR 3.6 million) is some one-third below the previous year’s level due to a decline in total revenues of some EUR 10 million besides high supply and marketing expenses at the beginning of the year. In H1 2005, the Telematics division generated total unconsolidated revenues of EUR 6.0 million and therewith exceeded the previous year’s level (EUR 5.8 million) by nearly 4 %. EBITDA of EUR 1.4 million (previous year EUR 0.7 million) and a significantly higher EBIT of EUR 0.8 million (previous year EUR 0.3 million) showed the momentum the Telematics division shifted from the first quarter to the second quarter. The increase in the operating EBITDA margin to 23 % (previous year: nearly 13 %) and the return to a satisfactory EBIT margin of ca. 13% (previous year: close to 5 %) emphasize the return to sustainable profits. Figures of the Satellite Services business unit (EBITDA: EUR 29,000 and EBIT: EUR 28,000) are also included in the figures above, as they have been in the past. “We particularly expect higher demand for Telematics solutions primarily in the product business in H2 2005”, Marco R. Fuchs (CEO) explained the upcoming business perspectives. In conclusion he added, “OHB Technology AG will also continue to increase earnings per share in the current 2005 financial year. This will be achieved despite the decline in total revenues compared to the previous year on a ‘stand alone’ basis without the consolidation of MT Aerospace AG.” The Management Board will submit a forecast of the consolidated FY 2005 figures of the considerably enhanced Group structure including MT Aerospace AG following the release of the nine-month figures. Key figures at a Q2 / Q2 / H1 / H1 / +/- H1 glance (EUR 000) 2004 2005 2004 2005 2005/04 Sales 27,664 17,385 40,635 29,846 – 27 % Total revenues 28,214 18,333 42,953 33,000 – 23 % EBITDA 2,526 2,560 4,853 4,658 – 4 % EBIT 1,764 1,765 3,351 3,048 – 9 % EBT 2,024 2,028 3,779 3,648 – 3 % Net income 1,184 1,216 2,295 2,336 + 2 % EPS in EUR 0.08 0.08 0.16 0.16 +/- 0 Cash and cash equivalents 79,562 36,033 79,562 36,033 – 55 % For further information please contact: OHB Technology AG; Michael Vér, Investor Relations Tel.: +49 (0)421 2020-8; E-Mail: ir@ohb-technology.de End of announcement (c)DGAP 11.08.2005 —————————————————————————— WKN: 593612; ISIN: DE0005936124; Index: Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover und Stuttgart 110700 Aug 05