Positive start to the year; Marel capitalizes on improved market conditions
- Revenues for Q1 2010 totalled 147.2 mln. Revenues from core business
totalled 128.9 mln, an increase of 24.9% compared to the same period the year
before [Q1 2009: 103.2 mln].
- EBITDA was 22.6 mln, or 15.3% of sales [Q1 2009: 0.8 mln]. EBITDA from core
businesses was 20.9 mln or 16.2% of sales [Q1 2009: 3.9 mln].
- Operating profit (EBIT) was 15.9 mln, or 10.8% of sales [Q1 2009: loss of
5.8 mln]. EBIT from core businesses was 15.1 mln or 11.7% of sales [Q1 2009:
loss of 1.7 mln].
- Net result was 5.6 mln for Q1 2010 [Q1 2009: loss of 7.0 mln].
- Cash flow remains strong and net interest bearing debt is 286 mln at the end
of Q1 2010 [Q1 2009: 373 mln].
- The order book has grown as a result of improved market conditions and was
113.5 mln at the end of the quarter [Q1 2009: 58.8 mln].
It was a good quarter for Marel. Revenues from core business were EUR 129 mln,
an increase of 15% compared to the previous quarter and 25% compared to the
same period last year. The company delivered on its long-term EBIT target of
10-12% return on revenues. The more favourable market conditions, combined
with Marel's strong position in the market, lower cost base and integration
synergies, are the basis for this achievement.
Theo Hoen, CEO:
“We are very pleased with the results for the first quarter. It is a good start
to 2010 for Marel. Market conditions are improving and we see revenues grow
once again compared to the previous quarter. The order book has also
strengthened as orders received exceeded orders booked off for the fifth
quarter in a row. We are delivering healthier margins and strong cash flow
thanks to continuous efforts to streamline and focus our operations.
The integration of the former Marel and Stork companies is beginning to pay
off. The integration of our distribution channels is progressing according to
plan and we are introducing a steady stream of new integrated solutions to the
market that greatly benefit our customers and strengthen Marel´s market
position. With the progress we have made, I have confidence in our future, not
only for the remainder of this year but also looking ahead to the longer term.”
Satisfactory order book
Market activity is increasing across the board and is at good levels,
particularly in poultry and fish, and is improving in meat and further
processing.
The order book has grown to a satisfactory level. Although large orders have
yet to reach the level they were at before the global financial crisis, they
are now steadily coming in, a welcome sign of recovery. Orders received,
including service revenues, amounted to 135.0 mln in Q1 2010, compared to 95.5
mln for the same period the year before. This was the fifth quarter in a row
that orders received exceeded orders booked off, leading to a gradual increase
in the equipment order book, which stood at 113.5 mln at the end of Q1 2010,
compared to 59 mln at at the same time the year before.
Strong cash flow and reduced debt
Operating cash flow remains healthy at 38.8 mln before interest and tax.
Interest cost and currency risk have been further reduced following an
agreement with the Icelandic banks on 4 February to change the currency
composition of a club loan facility from May 2009.
The balance sheet is strong and net debts have been further reduced to 286 mln
compared with 373 mln a year ago.
Following the completion of the sale of the non-core operating units of Food &
Dairy Systems and Carnitech A/S, Marel can now devote all its resources and
attention to building on its position as market leader in the provision of
equipment, systems and services to the fish, meat poultry and further
processing industries.
Presentation of results, 29 April 2010
Marel will present its results at a meeting on Thursday, 29 April, at 8:30
a.m., at the company‘s headquarters at Austurhraun 9, Gardabaer. The meeting
will also be webcast: www.marel.com/webcast
Publication days of the Consolidated Financial Statements in 2010 and the
Annual General Meeting 2011
Publication dates of the Financial Statements for 2010:
- 2nd quarter 2010 28 July 2010
- 3rd quarter 2010 27 October 2010
- 4th quarter 2010 2 February 2011
- Annual General Meeting of Marel hf. 2 March 2011
For further information, contact:
Erik Kaman, CFO Tel: (+354) 563-8072
Sigsteinn Grétarsson, Managing Director of Marel ehf. Tel: (+354) 563-8072
About Marel
Marel is the leading global provider of advanced equipment, systems and
services to the fish, meat and poultry industries. With offices and
subsidiaries in over 30 countries and a global network of more than 100 agents
and distributors, we work side-by-side with our customers to extend the
boundaries of food processing performance. Marel: Advance with Marel for all
your processing needs.
