WashTec AG — Earnings Release 2009

Aug 11, 2009

News Details

Corporate | 11 August 2009 07:37

WashTec AG: Economic down-turn affects business performance in the first half of 2009 – Positive operating result in Q2 2009

WashTec AG / Key word(s): Half Year Results

11.08.2009 / 07:37

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Economic down-turn affects business performance in the first half of 2009 –

Positive operating result in Q2 2009:

– Revenues decline by 13.0% to EUR121.5m due to lower equipment sales (decline Q2 2009 -10.7%)

– Operating result (EBIT) at EUR1.9m (Q2 2009 EUR4.4m)

– Cost-cutting measures: Start of component manufacturing in Czech Republic

Augsburg, August 11, 2009 – The financial and economic down-turn impacted the equipment sales of the WashTec Group throughout the entire first half of 2009. In total, revenues in the first half fell by EUR18.1m to EUR121.5m (prior year EUR139.6m). However, in the second quarter, the decline in sales (-10.7%) was less than in the first quarter (-15.6%). The decline continues to be caused by lower equipment sales, while the service, chemicals and operations business remained stable.

Due to the decline in sales, the operating result (EBIT) fell by EUR10.3m to EUR1.9m (H1 2008 EUR12.2m). It includes start-up costs in connection with the launch of own activities in the Czech Republic and Asia as well as writedowns on receivables and severance payments (EUR1.2m).

WashTec has a sound balance sheet structure with an equity ratio of now 40.4%.

Due to the investments made in the Czech Republic, China and the US as well as new locations for the operations business, net bank liabilities (including financial lease liabilities) climbed from EUR46.9m to EUR48.4m.

The US subsidiary Mark VII Equipment Inc. expanded its direct sales and service network in the Carolinas and Michigan in the second quarter.

The ‘operations business’, where sites are being operated on behalf of and for the account of our customers, was further expanded in Europe. Additional sites are scheduled to open in the second half of the year.

The chemicals business continues to perform favorably. WashTec is updating and expanding its entire chemicals portfolio with a focus on improving the qualities of care as well as environmentally friendly products.

Forecast

The carwash figures of the first half of the year show that the economic climate so far had no major impact on carwashing behaviour and that the carwash business continues to be profitable.

However, it is expected that the financial and economic down-turn, combined with the uncertain economic outlook will continue to lead to difficulties in accessing capital for equipment financing. This may lead to delays in capital expenditures for certain customer groups (such as individual operators) and sub-markets. The Company does not expect any substantial recovery in the markets for the second half of 2009 or 2010.

The Company assumes that the decline in revenues – as already observed in the second quarter – will be gradually reduced also in the second half of this year. The business segments of Service, Chemicals, and Operations are expected to remain stable. The implementation of the launched cost-cutting measures is further pushed ahead in all segments. Thus, profitability should increase again in subsequent years.

Overview of key performance indicators:

EURm, IFRS	H1/2009	H1/2008
Revenues	121.5	139.6
EBITDA	6.4	16.0
EBIT	1.9	12.2
EBIT adjusted for non-recurring effects	3.1	12.2
EBT	0.7	10.6

The full interim report 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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