INDUS will boost sales and earnings sharply in 2010
- Recession year 2009 digested
- Noticeable recovery in 2010
Bergisch Gladbach, April 27, 2010 - INDUS Holding AG is optimistic about the future again. In spite of a marked drop in sales and earnings, the Group is satisfied with the fiscal year 2009 against the background of the economic crisis. INDUS expects earnings to improve significantly in 2010. At today’s annual accounts press conference, Helmut Ruwisch expressed his confidence: “In 2009, in the midst of the deepest post-war recession, INDUS demonstrated the success of its business model of risk diversification. We remained profitable and well capitalised throughout the year. Following a difficult start to the year, business improved from quarter to quarter. The economic recovery stabilised at the end of the year and continues in 2010.”
Profitable through the 2009 crisis
As a result of the recession, sales revenues were down by approx. 16% to EUR 769.5 million (2008: EUR 920.1 million). While this means that revenues declined as had been announced, they were above the EUR 740 - 750 million projected in the course of the year. Earnings before interest, taxes, depreciation and amortisation (EBITDA) declined from EUR 133.4 million to EUR 100.7 million as a result of the crisis. At EUR 54.6 million, earnings before interest and taxes reached 60% of the prior year level and also exceeded INDUS’ projections of EUR 40 - 50 million. EBIT include not only non-recurrent expenses for personnel measures in excess of EUR 3.5 million but also writedowns for impairment in an amount of EUR 5.8 million. Net income for the year declined to EUR 11.4 million (2008: EUR 27.9 million).
Constantly high liquidity
Cash flow from operating activities, which is an important variable, held stead at the level of the previous years. At EUR 77.1 million (2008: EUR 80.7 million), cash flow testifies to the company’s continued high cash generating ability. Cash and cash equivalents amounted to over EUR 93 million at the end of the year (2008: EUR 87.8 million). Together with financing commitments of roughly
EUR 45 billion, they form the basis for the company’s future investments.
At EUR 28.1 million, interest expenses were up by only EUR 0.9 million on the previous year and thus reflect INDUS’ stable financing structure. At the same time, INDUS reduced its net liabilities by roughly EUR 30 million to EUR 408.3 million. Having increased steadily since 2005, the equity ratio picked up further to 26.5% (2008: 25.5%).
Segments reorganised
To leverage the growth opportunities in the relevant markets of the future more effectively, the Group has reorganised its segments. Going forward, the segment report will cover five segments, namely Construction/Infrastructure, Automotive Components/Development, Engineering, Metals/Metals Processing and Medical Engineering/Life Science.
Dividend of EUR 0.50 planned
In view of the deep recession in fiscal 2009 and the only gradual recovery from the crisis, the Management Board and the Supervisory Board will propose a dividend of EUR 0.50. This is equivalent to a dividend yield of approx. 4.2% based on the year-end price. “This dividend caters to the needs of both lenders and shareholders,” said Helmut Ruwisch.
Sales and earnings projections for 2010: Strong rise in sales and above-average earnings growth
INDUS will stick to its proven strategy in 2010 and rely on internal and external growth. At the beginning of the year, the company already acquired the remaining shares in OBUK and took over HAKAMA, Switzerland. The Group intends to boost sales revenues and earnings significantly in 2010. INDUS projects sales clearly in excess of EUR 800 million and disproportionate EBIT growth for the current fiscal year. The EBIT margin should clearly exceed the previous year’s 7% and approach the long-term target of over 10% again. In view of the performance in the first few months of 2010, Helmut Ruwisch is optimistic: “During the crisis, we have demonstrated that our investments are lean, efficient and resistant. Thanks to our conservative financing policy, our high cash flow and the resulting comfortable liquidity, we are well positioned for the current fiscal year and stand to benefit from the anticipated economic recovery.”
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