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

21 August 2014, Company News

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

21.08.2014 06:25

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

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

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
http://www.kardex.com/index.php?id=56&no_cache=1&L=0. 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
Tel. +41(0) 44 419 44 79
Tel. +41 (0)79 330 55 22

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. EQS publishes regulatory releases, media releases on the capital market and press releases. The EquityStory Group distributes authentic and real-time financial news for over 1'300 listed companies. The Swiss news archive can be found at www.equitystory.ch/news --------------------------------------------------------------------------- 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 ---------------------------------------------------------------------------