WashTec AG — Earnings Release 2007

Apr 2, 2008

News Details

Corporate | 2 April 2008 12:08

WashTec AG: Successful fiscal year 2007

WashTec AG / Key word(s): Final Results

02.04.2008 / 12:08

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Successful fiscal year 2007:

– Revenues up 7.0 % to EUR 279.7m

– Operating result (EBIT) increased from EUR 24.9m to EUR 28.9m – Revenue growth mainly driven by the US as well as Southern and Eastern Europe

Augsburg, April 2, 2008 – WashTec AG (ISIN DE0007507501) can look back on a successful fiscal year 2007. WashTec considerably increased revenues and earnings through a positive business development in its core markets and revenue growth in the USA as well as in Southern and Eastern Europe. ‘We were able to meet our set targets for 2007; revenues for the year as a whole increased by 7.0 % to EUR 279.7m, while the operating result (EBIT) improved from EUR 24.9m to EUR 28.9m. This corresponds to a rise of the EBIT margin to 10.3 %’ (2006: 9.5 %), explained Thorsten Krüger, Spokesman of the management board, at today’s annual results press conference in Munich.

In 2007 WashTec has further expanded its foreign business. Business outside of Germany rose to 66.4 %, up once again by nearly two percentage points year-on-year (2006: 64.7 %).

Revenues of the US subsidiary Mark VII Equipment Inc. increased by EUR 5.6m to EUR 30.5m (2006: EUR 24.9m) in the second year following the acquisition. This corresponds to an increase in revenues by approximately 23 % in Euro terms and by 35 % in US-dollar terms. This increase was mainly driven by the successful launch of new products as well as the expansion of the direct business. Following the reorganization in 2006, the 2007 focus was on strengthening the sales and service activities. Mark VII will serve as a platform for future growth in the US. WashTec also achieved strong growth in Southern and Eastern Europe. Main drivers for Southern Europe were the acquisition of the Spanish distributor in January 2007 and further expansion of direct business activities in Italy.

The operating result (EBIT) grew from EUR 24.9m to EUR 28.9m. The net income for the year resulted in EUR 12.6m (EUR 12.5m 2006). This moderate growth results from high tax expenses (2007: EUR 12.4m, 2006: EUR 8.5m) including an extraordinary write-down of EUR 3.2m on deferred tax assets due to the German tax reform that came into force in July 2007. As the tax reform will reduce the Group’s tax ratio to about 32 % in 2008 ff, the company expects an above average rise in its net earnings 2008.

‘We successfully launched the products unveiled at the end of 2006, such as the NEW SoftWash roll-over system, the MaxiWash Vario commercial wash system and the SoftLine Express wash conveyor. In addition, we stepped up our activities in Southern Europe with the takeover of our Spanish sales partner while in the US we prepared our subsidiary Mark VII with the expansion of our direct sales and service organization for further growth’, emphasized Thorsten Krüger. ‘At the same time, a number of other projects, such as sourcing activities in Asia, were launched in order to further increase the Group’s efficiency.’

The share buy-back program, which has been launched in September 2007, will be continued. At the Annual General Meeting in May, the company’s shareholders are set to resolve on a prolongation of the share buy-back program until November 2009.

‘Our strategic goals until 2010, which were communicated at the first »WashTec Investor Day« in Augsburg in September 2007 are to achieve an annual revenue growth of 4 – 7 % and an increase in the EBIT margin to 12 – 14 %. We are confident, that WashTec has numerous further growth and earning potentials to reach these goals’, said Christian Bernert, CFO of WashTec.

In 2008 the Company aims to further increase its net profit ratio and expects its earnings per share to increase considerably.

The 2007 Annual Report of WashTec AG may be downloaded at www.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 – 1135

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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