SANT'ANTONINO, Switzerland, Aug. 12, 2004 (PRIMEZONE) -- The Interroll Group, a worldwide leading supplier of conveyor components and subsystems for unit load handling, looks back on a successful first half of 2004: Total Output grows, Net Profit is up by almost 50%, and margins remain high in spite of precarious situation in global steel market.
Total Output (i.e. net sales +/- changes inventories of work in progress and finished goods + work performed by the enterprise and capitalised) for the first six months of the 2004 financial year rose by 11.1%. This was achieved without the Bulk Handling business unit, which was disposed of and deconsolidated effective from the end of June 2003. Even with Bulk Handling Total Output reached CHF 113.1 million and was thus comparable to the aggregate amount of CHF 113.2 million achieved in the months of 2003. The Components segment with the Drives & Rollers business unit generated CHF 64.1 million, while Subsystems segment (Dynamic Storage and Automation business units) achieved CHF 49.0 million. Earnings before interest, taxes, depreciation and amortisation (EBITDA) amounted to CHF 13.8 million (12.2% of Total Output). This is an increase by 10.6% compared to the EBITDA of the first half of 2003 without Bulk Handling. Earnings before interest and taxes (EBIT) grew by 58.9% from CHF 4.8 Mio. in the first half of 2003 (excluding Bulk Handling and impairment of tangible assets and goodwill) to CHF 7.7 mio. in the period under review.
Substantial increase in Net Profit
Compared with a total of CHF 3.4 million posted in the same period a year ago, Net Profit increased substantially by 47.5 % to CHF 5.0 million in the period under review. Thanks to a significant reduction in net debt, financial expenses were reined back and total financial income was improved considerably.
Margins at a high level
Despite palpable price increases and supply-side shortages within the area of steel, Interroll was able to maintain margins at a high level in the period under review, benefiting mainly from improved productivity within the field of manufacturing.
There can be little doubt that our rigorous strategic realignment executed over the past years has had a tangible effect on revenue growth. Further large-scale projects are currently being negotiated with potential clients.
Components segment: Interroll Drives & Rollers
Benefiting from progressive planning, Interroll Drives & Rollers succeeded in augmenting Total Output by approx. 13% to CHF 64.1 million in the first six months of 2004, which is all the more impressive when one considers that this was accomplished without the contribution of Bulk Handling.
EBITDA amounted to CHF 9.5 million, which equates to 14.8 % of Total Output. Despite considerable price increases for steel, margins remained more or less stable in the first half of the 2004 financial year.
Subsystems segment: Interroll Dynamic Storage and Interroll Automation
The Subsystems segment also performed admirably in the period under review. Total Output increased by approx. 9% year on year to CHF 49.0 million. EBITDA stood at CHF 4.3 million, or 8.8% of Total Output.
Focusing on the product portfolio within this area, Belt Curves, Transfers and Sorters recorded substantial growth in terms of incoming orders; these projects are to be executed in the second half of the 2004 financial year. Incoming orders for Sorters more than doubled in the period under review, which is a tribute to Interroll's global sales platform.
Regions
European business proved favourable in the first half of the 2004 financial year. Well positioned in terms of strategy, Interroll Drives & Rollers was able to capture additional market share in all countries, while also enhancing its earnings position.
Despite unfavourable foreign-exchange effects, revenue and earnings generated in North America -- and translated into Swiss francs -- improved in the first six months of 2004.
Revenue generated in Asia was stronger than in the same period a year ago. However, Japan failed to meet expectations within this area. The weakness of Asian currencies linked to the US dollar had a palpable effect on performance in this region.
Outlook
Despite unpropitious external influences, such as the precarious situation currently witnessed throughout the global steel market, Interroll can look back on a successful first half. Benefiting from an incisive strategy, we managed to enhance our market position and capture an additional share of the market on all continents. With regard to the second half of the 2004 financial year, we remain committed to rolling out several new pioneering products to accelerate growth. Moreover, we shall continue to focus on bolstering our earnings and capturing additional market share. We shall also monitor the price and supply structures of steel, a material which is of immense importance to Interroll's manufacturing activities. Developments within the area of foreign currencies will also be subject to close scrutiny. Our revenue and earnings performance for the second half of the 2004 financial year will depend on the state of the global economy over the course of the next six months.
For more information please contact Interroll on Thursday, 12th August 2004, between 9:30 and 11:00 a.m.
Paul Zumbuhl, CEO Tel. +41 91 850 25 24
Lorenz Kohler, Head of Corporate Communications Tel. +41 91 850 25 21
http://www.interroll.com/ir (Investor Relations) mailto:investor.relations@interroll.com
Agenda 2005 Press conference: 1st April 2005
Key figures of the Interroll Group as of 30th June 2004 (also available in Excel from http://www.interroll.com/ir)
Interroll -- consolidated income
statement (in 1000 CHF)
30.06.2004 30.06.2003 A 30.06.2003 A
without bulk handling/impairment
Net Sales 111'290 102'762 8.3% 113'757 -2.2%
Changes in WIP/FG and
other income 1'776 -984 -- -611 -390.7%
Production output 113'066 101'778 11.1% 113'146 -0.1%
Income from commissions,
licences and freight 3'652 2'580 41.6% 2'774 31.7%
Operating income 116'718 104'358 11.8% 115'920 0.7%
Material expenses 49'461 40'573 21.9% 45'329 9.1%
Personnel expenses 31'516 30'281 4.1% 34'474 -8.6%
other operating expenses 22'639 21'200 6.8% 22'235 1.8%
other operating income 682 162 321.0% 7'249 -90.6%
EBITDA 13'784 12'466 10.6% 21'131 -34.8%
in % of production
output 12.2% 12.2% -- 18.7% -34.7%
Depreciation 5'090 6'842 -25.6% 7'534 -32.4%
Impairment of tangible
assets 0 0 -- 695 -100.0%
EBITA 8'694 5'694 52.7% 12'902 -32.6%
in % of production
output 7.7% 5.6% -- 11.4% -32.6%
Amortisation of goodwill 1'044 881 18.5% 881 18.5%
Impairment of goodwill 0 0 -- 5'000 -100.0%
EBIT 7'650 4'813 58.9% 7'021 9.0%
in % of production
output 6.8% 4.7% -- 6.2% 9.0%
Financial expenses, net 758 1'401 -45.9% 1'468 -48.4%
Profit before taxes 6'892 3'412 102.0% 5'553 24.1%
Income taxes 1'923 814 124.0% 2'174 -11.5%
Profit after taxes 4'969 2'598 91.3% 3'379 47.1%
Minority interest on
profit after taxes 37 14 -- 14 0.0%
Net Profit 5'006 2'612 91.7% 3'393 47.5%
in % of production
output 4.4% 2.6% -- 3.0% 47.6%
Basic earnings per
average share
outstanding (in CHF) 6.41 -- -- 4.36 47.0%
Diluted earnings per
average share
outstanding (in CHF) 6.37 -- -- 4.36
Interroll shares: Interroll shares are listed at the Swiss Exchange. Security number 637'289; Investdata INRN; Reuters INRn.S.