WashTec AG — Earnings Release 2005

Apr 4, 2006

News Details

Corporate | 4 April 2006 15:27

WashTec AG: Dynamic growth in fiscal 2005

WashTec AG / Key word(s): Final Results

04.04.2006 / 15:27

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Dynamic growth in fiscal 2005:

– Sales up 6.6% to EUR 225.8 million

– Earnings before tax (EBT) up from EUR 1.0 million to EUR 15.0 million – Net liabilities reduced to EUR 44.2 million

Augsburg, April 4, 2006 – WashTec AG (ISIN DE0007507501) looks back on extremely dynamic growth in fiscal year 2005. Supported by strong business activity for roll-over washes and the positive effects of the comprehensive restructuring programme, WashTec was able to boost both sales and earnings significantly. ‘At 10.5%, our operating EBIT margin was higher than the target we had set ourselves,’ explained Management Board Spokesman Thorsten Krüger at today’s annual accounts press conference in Munich. The company had originally announced an operating EBIT margin target of 10%.

Group sales rose by 6.6% from EUR 211.8 million to EUR 225.8 million, mainly due to the positive development in the roll-over washes segment, which benefited from the additions of the SoftCare product family. Foreign sales accounted for 58.9% of total sales, i.e. almost two percentage points up on the previous year’s 57.4%.

Earnings before interest and tax increased by 113% from EUR 9.1 million to EUR 19.4 million, primarily due to the positive effects of the restructuring programme, which resulted in a sustained improvement of the company’s cost structures. The negative financial result declined from the previous year’s EUR 8.0 million to EUR 4.4 million as a result of the reduction in bank liabilities and the amended terms of the refinanced working capital loans. Earnings before tax amounted to EUR 15.0 million (2004: EUR 1.0 million). This figure includes non-recurring effects in an amount of EUR 4.5 million (2004: EUR 6.2 million), which comprise, among other things, expenses resulting from the closure of the Canadian subsidiary SSI (EUR 1.3 million), inventory adjustments (EUR 0.9 million) and provisions for phased retirement schemes (EUR 0.8 million). After deduction of tax in an amount of EUR 5.6 million (2004: EUR 4.2 million), net profit for the year amounted to EUR 9.4 million, compared to EUR -3.2 million in the previous year. Accordingly, earnings per share improved from EUR -0.28 to EUR 0.81 (weighted average of shares issued 11,653 million). ‘Last year, we not only strengthened our operating profitability but also put our balance sheet structure back on a solid base,’ said Jürgen Lauer, CFO of WashTec AG. In August 2005, the company increased its capital by EUR 20 million to EUR 40 million, which led to a net inflow of funds of approx. EUR 36 million. These funds were used to repay substantial portions of subordinated loans. The equity ratio increased from 2.4% to 27%, as equity rose from EUR 4.0 million to EUR 49.3 million.

Krüger expressed his optimism about the acquisition of Mark VII Equipment LLC, USA, which had been announced at the beginning of the year. ‘This acquisition means that we reached our strategic objective of entering the attractive US market earlier than expected. The leading market position, the complementary product range and the positive track record of the past years make Mark VII an ideal partner for us.’ In 2006, WashTec wants to grow not only in the USA. The Austrian subsidiary established last year, for instance, will help the company make further access into the Eastern European markets.

In 2006, WashTec will aim to boost its operating result further and to expand its position as the market leader and as the most innovative and profitable company in the industry.

The WashTec AG annual report 2005 is available under www.washtec.de.

Contact:

Karoline Kalb Telefon +49 (0) 821/5584-1134 email kkalb@washtec.de

Contact:

Karoline Kalb, Investor Relations

WashTec AG

Argonstraße 7

86153 Augsburg

Tel.: +49 (0)821 – 55 84 – 0

Fax: +49 (0)821 – 55 84 – 12 06

Mobile: +49 175 – 4302025

End of Corporate News

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Language:	English
Company:	WashTec AG
	Argonstraße 7
	86153 Augsburg
	Germany
Phone:	+49 (0)821 55 84-0
Fax:	+49 (0)821 55 84-1135
E-mail:	washtec@washtec.de
Internet:	www.washtec.de
ISIN:	DE0007507501
WKN:	750750
Listed:	Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, München, Stuttgart

End of News	DGAP News-Service

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