INDUS armed for acquisitions / - Strong growth in first half
Bergisch Gladbach, August 31, 2007 - INDUS Holding AG (ISIN DE0006200108) further increased its sales in the first half of 2007 while also matching the high level of operating earnings reported for the previous year. Helmut Ruwisch, CEO of INDUS Holding AG, is satisfied with the company’s business performance, adding that “this is a thoroughly respectable set of results in view of the rise in commodity prices, which led to increased costs of materials in the first half of the year, as well as of wage and salary increases, in some cases substantial, in individual sectors”.
The Group’s sales rose by 12.4 % from Euro 403.5 million to Euro 453.5 million in the first half of 2007. At 39.4 %, the international share of sales was also 1.2 percentage points up on the previous year. As a result of the further rise in commodity and energy prices, the material expense ratio rose to 48.0 %. The rationalization measures implemented led the personnel expenses ratio to decline by 0.5 percentage points to 26.0 %. At Euro 49.6 million, operating earnings before interest and taxes (EBIT) reached the high level seen in the first half of the previous year.
At Euro 34.2 million, the operating earnings reported by the holding company (AG) also virtually reached the previous year’s level (previous year: Euro 34.9 million). A reduction in net financial expenses led the net income for the period to increase by 4.5 % from Euro 22.1 million to Euro 23.1 million.
Following a deliberately reserved acquisition policy in the past two years, INDUS now stands to play an active role once again in a climate where the financial scope of private equity companies is becoming more restrictive and price levels are normalizing for company acquisitions. “We have used the time to optimize processes at our shareholdings and to press ahead with internal growth,” explained Ruwisch. “Given the comfortable equity ratio at the Group and the holding company, our liquidity resources and the financing lines committed by banks, we are in a position to invest in the expansion of our portfolio at any time.”
Based on a continuation of the favorable economic climate, the Management Board expects sales to grow to more than Euro 900 million in the current financial year. The Group’s operating earnings are also expected to develop positively.
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