Summary
2008/09 was a challenging year for Satair. However, the Group performed
relatively well in a fiscal year characterized by a difficult situation in the
aviation industry and the global economy. The revenue decline was modest, and
earnings were satisfactory in view of the existing market environment. Focus
was on adapting the business to the changed business environment - e.g. by
optimizing cash flows, reducing costs and forging closer relations to
customers, all for the purpose of providing a basis for future growth.
"It has been a turbulent year for the aviation industry and, hence, also for
Satair, with declining passenger volumes, inventory reductions in the
production link and by air carriers and a general lowering of the production
levels for several types of aircraft. Against that background it is
satisfactory that Satair performed relatively well in the past fiscal year,
reporting only a modest decline in revenue. We have been strictly focused on
navigating Satair safely through the crisis and implementing the new ERP system
throughout the Group. We succeeded in attaining the necessary cost reductions,
and we have done a targeted effort to strengthen relations with our customers
and suppliers to find common solutions to the challenges facing the industry.
Lastly, in June 2009 we succeeded in landing a major new supplier contract
expected to contribute revenue of USD 20-25 million once it has been fully
phased in. Regrettably, there is still a lot of uncertainty in our industry,
and so we keep monitoring market developments very closely to make the
necessary adjustments on an ongoing basis. All in all we believe that Satair
has a robust business model, and that we will emerge from the crisis as a
stronger company once the trends in the world economy are reversed” says John
Stær, CEO.
• Revenue in 2008/09 came to USD 410.6 million (-3%).
o The Aftermarket Division posted revenue of USD 292.4 million (+2%).
o The OEM Division posted revenue of USD 118.2 million (-13% reported in USD
and -5% reported in local currencies).
• Despite the revenue decline, EBITDA before special items increased by 12% to
USD 38.0 million, and the EBITDA margin before special items came to 9.3%
against the year-earlier 8.0%.
• EBITDA stood at USD 26.8 million against USD 37.3 million last year, the
decline being due to the effect of currency contracts, which contributed a
gain of USD 5.7 million in 2007/08 against a loss of USD 10.7 million in
2008/09.
• Profit before tax totaled USD 9.8 million against USD 21.6 million last
year (-55%).
• Profit for the year after tax came to USD 7.7 million against USD 14.8
million last year (-48%).
• Earnings per share came to USD 1.80 USD (-48%).
• Revenue is on a par with the most recently announced expectations (see
release of May 13, 2009), with profit before tax reflecting a decline,
The Board of Directors recommends that a dividend be declared for FY 2008/09 of
DKK 3.00 per DKK 20 share, corresponding to 32% of the profit for the year.
Outlook for 2009/10
FY 2009/10 is expected to see revenue at the same level as in 2008/09, an
EBITDA in the region of USD 28-32 million and a profit before tax of approx.
USD 18-22 million.
Because of the scope and extent of the challenges currently prevailing in
aviation, the outlook uncertainty for FY 2009/10 is high.
Webcast
On Tuesday, September 15, 2009 at 10am a conference call and webcast will be
arranged concerning this release. To attend, please dial +45 7026 5040 five
minutes before the stated time. The conference may be accessed through a link
on Satair's website at www.satair.com and will subsequently be available on the
website.
