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Kardex AG: Half Year Results 2014 / Successful first half year for Kardex

Media information - Half Year Results 2014 Zurich, 21 August 2014 Successful first half year for Kardex



Kardex AG / Key word(s): Half Year Results

 

21.08.2014 06:25

 

Release of an ad hoc announcement pursuant to Art. 53 KR

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Media information - Half Year Results 2014

 

Zurich, 21 August 2014

 

Successful first half year for Kardex

 

The Kardex Group achieved an encouraging overall result in the first half

of the 2014 financial year, benefiting from solid market conditions and,

above all, from profitable growth in its larger division, Kardex Remstar.

Kardex Mlog Division is currently working on cementing its turnaround. In

the following report, the year-on-year comparison of Group results refers

to continued operations, i.e. the revenues and results of Stow Division

(sold at the end of July 2013) have not been factored in. The detailed

figures can be found in the segment report contained in the Interim Report.

 

At EUR 153.0 million, the bookings reported by the Kardex Group were

generally on a par with the previous year's level (EUR 153.4 million),

while the posted revenues of EUR 147.2 million were 2.8% up on the figure

for the first half of 2013 (EUR 143.2 million). The operating result (EBIT)

increased by around 22% from EUR 9.9 million to EUR 12.1 million,

corresponding to an EBIT margin of 8.2% (6.9%). Net profit came to EUR 9.5

million (6.5% of revenues), 33.8% higher than the previous year's figure of

EUR 7.1 million. Return on capital employed exceeded the 30% mark.

 

Profitable growth momentum at Kardex Remstar

 

In the first half of the year, Kardex Remstar Division benefited from

efforts as of mid-2013 to step up capital expenditure and investments in

personnel resources. The 7.3% year-on-year rise in operating costs reflects

the targeted expansion of the sales organization, efforts to strengthen R&D

activities as well as non-capitalized IT project costs. The globally

reinforced sales team succeeded in increasing bookings from new business by

some 7% compared with the year-back period. Central Europe and Asia saw

above-average double-digit growth in bookings. A sizeable increase in new

orders was also reported by the service business. The newly established OEM

business won its first contracts. Overall, bookings were up by 5.8% to EUR

131.1 million (EUR 124.0 million), while the order backlog of EUR 88.6

million was close to 9% higher than in the same period one year ago (EUR

81.5 million). Net revenues grew by 4.6% to EUR 116.6 million with an

above-average 7.3% increase reported by the service business. Recording an

operating result of EUR 12.8 million and an EBIT margin of 11.0%, the

division again achieved a solid EBIT, once again an improvement of the

previous year's figure.

 

Kardex Mlog cements turnaround in first half

 

Kardex Mlog's objective for 2014 is to cement the turnaround achieved in

2013. In the first half, the division achieved a positive, albeit modest,

operating result of EUR 0.4 million (EUR 0.2 million) on revenues down 3.5%

at EUR 31 million. There is, however, a price to pay for taking a

consistently risk-aware approach to project delivery and for the company's

heightened focus on product and service orders: project bookings in the

first half were roughly 46% lower than in the previous year. The marked

upturn in bookings in the strategically important modernization business

(+21.5%) and in the service segment (+9.5%) was not sufficient to fully

offset this decrease. Total bookings were down almost 26% against the

previous year. Kardex Mlog launched a number of new and innovative products

in 2014, further strengthening its sound position in the market. Management

is confident that its new business model will soon yield the desired

results. However, proof still needs to be provided that this can be

accomplished on a sustainable basis.

 

Solid balance sheet despite high distributions

 

The Kardex Group has a sound balance sheet, is debt-free and has the

necessary flexibility to seize any opportunities arising in the market. The

Annual General Meeting of Kardex AG on 24 April approved the distribution

of CHF 2.65 per share (CHF 1.25 ordinary dividend, CHF 1.40 special

dividend from the sale of Stow Division), corresponding to a total pay-out

to the shareholders of EUR 16.8 million. This outflow of funds was offset

more than half by the free cash flow of EUR 9.4 million generated in the

first half of the year. Since the beginning of 2013, a total of around EUR

50 million has been channeled back to shareholders. Despite these

repayments, the Group's equity ratio was held at a comfortable 55.9% as at

the end of the period under review.

 

Cautiously optimistic outlook

 

The Kardex Group expects to turn in a solid performance on the back of

continuing solid market conditions. The favorable outlook for Kardex

Remstar is clouded solely by the sluggish volume of project bookings

reported by Kardex Mlog, which could temporarily curb the latter division's

positive performance. The Board of Directors is currently looking into a

number of smaller acquisitions to systematically strengthen Kardex Remstar.

 

A PDF version of the Interim Report, is available on our website at

www.kardex.com/index.php

 

Today, 21 August 2014, at 3:00 pm (CET), there will held an analyst

conference call with Executive Director Felix Thöni, Head of Finance and

Controlling Thomas Reist and Investor Relations Contact Officer Edwin van

der Geest to discuss the half-year results. The conference call is expected

to be held in English. The corresponding presentation is available at

www.kardex.com/index.php. Please dial-in

approx. 5 minutes prior to the conference.

To take part, dial-in: +41 (0)22 592 73 12

Conference-ID: 4691685

 

 

Contact for media and investors:

Edwin van der Geest

investor-relations@kardex.com

Tel. +41(0) 44 419 44 79

Tel. +41 (0)79 330 55 22

 

Agenda

12 March 2015 Publication Annual Report 2014

Media and Analysts Conference year-end 2014

SIX Swiss Exchange, Zurich

23 April 2015 Annual General Meeting

SIX Swiss Exchange, Zurich

13 August 2015 Publication Interim Report 2015

Conference Call for Media and Analysts

 

 

 

Key figures (Continued Operations)

 

 

EUR millions

 

1.1. - 30.6. 2014 (%) 2013 (%) +/-%

Bookings 153.0 103.9% 153.4 107.1% -0.3%

Order backlog (30.6.) 110.0 74.7% 116.1 81.1% -5.3%

Net revenues 147.2 100.0% 143.2 100.0% 2.8%

Gross Profit 48.8 33.2% 44.4 31.0% 9.9%

OPEX 36.7 24.9% 34.5 24.1% 6.4%

Operating result (EBIT) 12.1 8.2% 9.9 6.9% 22.2%

EBITDA 15.1 10.3% 12.7 8.9% 18.9%

ROCE 31.1% 22.6% 37.6%

 

30.6.2014 31.12.2013 +/- %

Net working capital 55.4 54.4 1.8%

Net cash 69.8 77.0 -9.4%

Equity/Equity ratio 99.6 55.9% 106.9 55.9% -6.8%

Employees (FTE) 1'448 1'447 0.1%

 

 

 

Kardex Group - Corporate Profile

 

The Kardex Group is a global industry partner for intra-logistic solutions

and a leading supplier of automated storage solutions and material handling

systems. The Group consists of two entrepreneurially managed divisions,

Kardex Remstar and Kardex Mlog. Kardex Remstar develops, produces and

maintains shuttles and dynamic storage and retrieval systems and Kardex

Mlog offers integrated materials handling systems and automated high-bay

warehouses. The two divisions are partners for their customers over the

entire life cycle of a product or solution. This begins with the assessment

of customer requirements and continues through planning, realization and

maintenance of customer-specific systems. It ensures a high level of

availability combined with low total cost of ownership and operation.

Around 1 500 employees in over 30 countries work for the Kardex Group.

 

Disclaimer

 

This communication contains statements that constitute "forward-looking

statements". In this communication, such forward-looking statements

include, without limitation, statements relating to our financial

condition, results of operations and business and certain of our strategic

plans and objectives. Because these forward-looking statements are subject

to risks and uncertainties, actual future results may differ materially

from those expressed in or implied by the statements. Many of these risks

and uncertainties relate to factors which are beyond Kardex's ability to

control or estimate precisely, such as future market conditions, currency

fluctuations, the behavior of other market participants, the actions of

governmental regulators and other risk factors detailed in Kardex's past

and future filings and reports and in past and future filings, press

releases, reports and other information posted on Kardex Group companies'

websites. Readers are cautioned not to put undue reliance on

forward-looking statements, which speak only of the date of this

communication. Kardex disclaims any intention or obligation to update and

revise any forward-looking statements, whether as a result of new

information, future events or otherwise.

 

 

21.08.2014 News transmitted by EQS Schweiz AG.

The issuer is responsible for the contents of the release.

 

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Language: English

Company: Kardex AG

Thurgauerstrasse 40

8050 Zürich

Switzerland

Phone: +41 (0)44 419 44 79

Fax:

E-mail: investor-relations@kardex.com

Internet: www.kardex.com

ISIN: CH0100837282

Valor: 100837282

Listed: Freiverkehr in Berlin, München, Stuttgart;

Frankfurt in Open Market ; SIX

 

End of Announcement EQS Group News-Service

 

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