WashTec AG — Earnings Release 2009

May 4, 2009

News Details

Corporate | 4 May 2009 07:49

WashTec AG: Business development in first quarter of 2009 affected by economic crisis

WashTec AG / Key word(s): Quarter Results

04.05.2009 / 07:49

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Business development in first quarter of 2009 affected by economic crisis:

– Revenues decline by 15.6% to EUR54.6m (prior year EUR64.7m) due to lower

equipment sales

– Operating result (EBIT) at EUR-2.5m (prior year EUR3.1m)

– New generation of roll-over washing systems launched in the United States

Augsburg, May 04, 2009 – In the first quarter, the financial and economic crisis negatively impacted WashTec’s business, particularly in equipment sales. Investment delays among smaller customers and declining equipment revenues in markets such as Spain, where the market for car wash systems has nearly collapsed, resulted in a 29% decline in revenues from equipment sales. Service and chemicals revenues were at prior year level, after making adjustments for special service projects in the previous year and the acquisition of AUWA-Chemie in May 2008. Due to stable wash counts, revenues of the operating subsidiary WesuRent remained stable as well, which shows that the washing behaviour remains unchanged despite the current crisis. Total revenues in the first quarter fell by EUR10.1m to EUR54.6m (prior year EUR64.7m).

Based on the decline in revenues, the operating result fell by EUR5.6m to EUR-2.5m (prior year EUR3.1m). This figure includes EUR 0.8m write-downs for

allowances on questionable receivables in Southern Europe.

Net finance costs were further reduced from EUR0.8m to EUR0.6m due to lower bank liabilities. Earnings before taxes (EBT) fell in the first quarter to EUR-3.1m (prior year EUR2.2m).

The equity ratio remained stable at 39.5%. Net bank liabilities, including financial lease liabilities, climbed from EUR46.9 m (as of December 31, 2008)

to EUR50.8 m.

During the largest American car wash trade fair – the ICA in Las Vegas held in early April – Mark VII (USA) exhibited a new generation of roll-over washing systems, which includes »touch-free« and »friction« systems. The new equipment, which was developed in the United States, offers significantly improved washing results with lower energy and water consumption.

The roll-out in Europe of the products presented at the automechanika 2008, like for example the SoftCare2, advances according to plan.

Forecast

The current car wash figures show that the economic environment so far had no major impact on car washing behaviour, and that the car wash operations business continues to be stable and profitable.

The financial and economic crisis, however, continues to cause delays in investments in equipment among certain customer groups such as individual operators as well as in certain markets. Initially, the United States, followed by Spain and Great Britain in Europe, were particularly affected. During 2009 it is expected that investments will also be delayed in other regions, such as Eastern Europe.

Given the decline in equipment sales and the lower order backlog compared to prior year, WashTec anticipates that equipment revenues for the entire first half of 2009 will be significantly lower than the same period in 2008. All other business fields are expected to remain relatively stable. Given the continuing uncertainties with respect to the business climate and the short order to delivery cycle, a more detailed outlook for 2009 is still not possible.

Because of the anticipated decline in revenues, the company has already initiated various cost-cutting measures. This includes not only short-term measures such as strict cost management, but also mid-term and long-term actions such as sourcing activities in Asia and the commencement of component manufacturing in the Czech Republic.

Overview of key performance indicators:

EURm, IFRS	Q1/2009	Q1/2008
Revenues	54.6	64.7
EBITDA	-0.4	4.9
EBIT	-2.5	3.1
EBIT adjusted for non-recurring effects	-1.7	3.1
EBT	-3.1	2.2

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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