Muehlhan publishes results for fiscal year 2014

Muehlhan publishes results for fiscal year 2014

- Group forges ahead with restructuring
- Consolidated sales and EBIT increased
- Conservative outlook


Hamburg, 2 April 2015 - In fiscal year 2014, the Muehlhan Group (Entry Standard; ISIN DE000A0KD0F7)continued its upward trend in a persistently tough maritime market environment. Despite a mixed sales performance, the Group posted €2.3 million of net income. The Group's EBIT rose by €0.9 million to €6.0 million based on consolidated sales of €218 million (+ 5%).

Three consecutive years of improved earnings highlight the necessity and effectiveness of the strategy adopted by the Executive Board and the Supervisory Board to compensate for the decline in the Ship segment by turning toward the Oil & Gas and Industry segments. The positive earnings trend is due not least to management's indefatigable work in many critical operating areas.

A regional breakdown shows that sales again rose significantly in Europe, increasing by 7.8% to €180.7 million. EBIT increased by €0.4 million to €10.2 million.

In America, sales totaled €18.2 million, €1.0 million lower than in the previous year. EBIT dropped by €2.2 million to €0.7 million. However, the previous year's figures included €2.3 million income from settlements of two pending lawsuits.

In Asia, sales decreased from €20.4 million to €19.0 million. This decrease reflected the sale of the subsidiary in China and the disappointing business performance in Singapore. The order situation did not improve, as forecasted by the customer, but in fact deteriorated. In addition to operating losses totaling €1.5 million, EBIT was negatively affected by €0.8 million of impairment losses to goodwill. In the Middle East, by contrast, Muehlhan's fire protection business benefited from the construction boom in the United Arab Emirates. For Asia as a whole, EBIT totaled to € -0.4 million, compared to € -4.7 million in the previous year.

Despite the still crisis-stricken maritime markets, the Ship Newbuilding business segment managed to significantly increase sales revenues by expanding its market share. Overall, the segment reported a profit of €0.5 million on sales of €35.5 million. The Ship Repair segment again posted lower sales and earnings figures.Ship Newbuilding and Ship Repair together comprised only 30% of consolidated sales and contributed €0.0 million to earnings.

The Energy business segment posted the biggest increase in sales, which improved by €10.0 million to €60.2 million. Earnings remained virtually unchanged at €2.6 million.

In the Industry business sales improved again, increasing by 5.6% in 2014 to €52.5 million. Earnings rose by €2.8 million to €3.4 million.

Both of the businesses included in the Other Services segment, Scaffolding and Steel Construction, reported stable sales and earnings, contributing €40.1 million to consolidated sales and €4.5 million to Group EBIT.

The Executive Board expects the Group's upward trend to continue. Management intends to accelerate this process by acquisitions in the Oil & Gas and Industry growth segments, assuming that suitable acquisitions targets are available. Nevertheless, the Executive Board's outlook for 2015 is conservative. The decline in the oil price, which has resulted in a subdued investment and maintenance policy on the part of oil and gas customers, could have a negative impact on the company's business.

For additional information on fiscal year 2014 and details on the outlook for 2015, please consult the Muehlhan Annual Report published on 2 April 2015.

The Company's key financial indicators are shown in the following table:

 

in EUR millionFiscal year 2014Fiscal year 2013
Sales218.0207.8
EBITDA11.913.4
EBIT6.05.2
Net profit for the year2.31.5
Cash flow11.612.6
Fixed assets47.639.7
Equity61.358.3
Equity ratio in %5252
Total assets118.5112.7
Employees (annual average)2.6752.390