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Kardex AG: Media information on the Half Year Closing 2013

Media information to the half year closing 2013 Zurich, 22 August 2013 Kardex Group Kardex improves

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


22.08.2013 06:29


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



Media information to the half year closing 2013


Zurich, 22 August 2013


Kardex Group


Kardex improves profitability in a challenging market environment


The Kardex Group held its ground well in a challenging economic environment

in the first half of the year. Following a weaker second half in 2012 and a

sluggish start to 2013, at EUR 249.3 million, bookings were close to the

year-back level (EUR 252.2 million). The order backlog of EUR 174.1 million

at the end of June 2013 is 7% higher than 12 months previously and 12.4% up

on the beginning of the year.


The net revenues of EUR 227.3 million generated in the first half of 2013

were 5.2% lower than the sales reported in the strong first six months of

2012 (EUR 239.8 million). Owing to the quality of the orders, operational

improvements and efficient cost management, a satisfactory result was

nevertheless achieved. The operating result (EBIT) of EUR 14.6 million

corresponds to a EBIT margin of 6.4% and is 18.7% higher than last year

(EUR 12.3 million). Net profit for the first half stands at EUR 10.8

million (EUR 9.1 million) and earnings per share came in at EUR 1.40 (EUR

1.17). Return on capital employed reached (ROCE) 22.6%. Despite a payment

of a dividend of EUR 7.4 million to shareholders, the Group's net cash

position increased further to EUR 17.2 million (31.12.2012: EUR 12.4

million). This is thanks to the free cash flow of EUR 12.2 million (EUR

11.8 million). The Group's end-of-period equity ratio increased to 38.9%

(31.12.2012: 36.2%).


Kardex Remstar profits from efficiency improvements


With sluggish demand in the industrial sector, Kardex Remstar suffered a

decrease in revenues in most markets. Division revenues were down by 4.9%

to EUR 111.5 million (EUR 117.3 million), reflecting the lower backlog of

orders at the end of 2012 and delays in the execution of various more

complex orders. On the other hand, bookings were up 1.7% to EUR 124.0

million (EUR 121.9 million). Accounting now for 28.9% of revenues, the

service business continues to have a stabilizing impact. Kardex Remstar's

operating result of EUR 10.9 million is on a par with the previous year's

level and corresponds to an EBIT margin of 9.8%.


In the first half of 2013, Kardex Remstar successfully launched a valuable

addition to its range: a new vertical carousel for smaller loads. At the

LOGIMAT, Europe's foremost intra-logistics trade fair, Kardex Remstar

showed a further step in the division's development from a product-oriented

company to a supplier of logistics solutions. Designed to further increase

efficiency and enhance customer service, the spare parts centre for Europe

commenced operations at the Bellheim site in July 2013.


Kardex Stow holds margin


Kardex Stow also fell just short of the revenues reported in the year-back

period. At EUR 84.8 million, net revenues were down 4.4% year-on-year (EUR

88.7 million), while bookings were only 2.7% lower at EUR 96.7 million (EUR

99.4 million). The operating result of EUR 4.3 million was only a

marginally lower than the previous year's figure (EUR 4.5 million),

corresponding to an EBIT margin of 5.1%.


As announced, over the past 15 months the Board of Directors of Kardex AG

assessed all the strategic options for locking even more effectively into

Kardex Stow's strong potential. Compared with its competitors, Kardex Stow

is well placed in terms of costs and efficiency, thanks to the highly

automated plant in Belgium, an efficient facility for labour-intensive

tasks in the Czech Republic and an established site in Shanghai. The

products enjoy a solid reputation in the market, which has also led to

greater demand from global OEM customers. However, the high cost of

transporting the final product has so far limited the division's geographic

expansion. The sale (announced on 8 May 2013) to the French-based Averys

Group will open up new prospects for Stow. The two companies are a good

fit, both geographically and product-wise. Thanks to its wide distribution

network and production sites in France, Germany, Belgium, Poland, the Czech

Republic, Turkey and China, the combined group will become a leading

European provider in the industry with annual sales of around EUR 350



Reorganization of Kardex Mlog showing initial successes


Kardex Mlog reported a year-on-year 11.2% decrease in sales to EUR 31.7

million. At EUR 29.5 million, bookings were also just over 10% below the

previous year's figure. However, the decrease was due not so much to market

conditions as to the company's efforts to improve its strategic product mix

and, above all, the risk management. Accordingly, the gross profit

generated by new business is significantly higher than in the first six

months of the previous year. Up 4.5% year-on-year, service sales now

account for 18% (15%) of revenues. Kardex Mlog is well on the way to

returning to sustainable profitability. While the operating result of EUR

0.2 million is still very modest, it is a considerably improvement to the

previous half-year result (EUR -1.3 million). Having been brought up to

full strength again during the first half year, the management team is now

well equipped to further implement the turn-around strategy of Kardex Mlog.


Further improvements in capital management


Receivables decreased by EUR 9.5 million (-10.3%), reflecting not only

lower revenues but also improved and more efficient receivables management.

On the liabilities side, faster payment of suppliers' bills generated

additional early payment discount income. The return on capital employed

(ROCE) came to 22.6% and the return on equity to 26%.


Planned use of cash inflow from the sale of Kardex Stow


The sale of Kardex Stow to Averys was concluded following the go-ahead from

the competition authorities. Kardex will post a book gain of approximately

EUR 10 million on the sale, after adjusting for goodwill of some EUR 23.1

million already written down in accordance with Swiss GAAP FER. The Group

will use the cash inflow of around EUR 76 million (including repayment of

intercompany loans) from the sale primarily to invest in the accelerated

organic expansion of Kardex Remstar and to repay the remaining bank debts

of EUR 10 million.


Furthermore, the Board of Directors plans to use around CHF 30 million for

a special dividend of CHF 4.00 per share from capital contributions. This

is roughly equivalent to the funds generated by the capital increase in

September 2011, which are now to be channelled back to shareholders. Kardex

AG will therefore be convening an extraordinary general meeting for 25

September 2013. Nevertheless, the Group's equity ratio will remain above

50% even after distribution of the special dividend.


Division head and Executive Committee member Jos De Vuyst left the Group

following the sale. The reduction in the Group's size also brought with it

further streamlining at the holding company. Chief Financial Officer

Gerhard Mahrle left Kardex AG in May, handing over his duties to Thomas

Reist, Head of Finance and Controlling. We would like to thank these two

Gentlemen and all employees of Kardex Stow most sincerely for their

commitment to the Kardex Group and wish them all the best for the future.


Cautiously optimistic outlook


Thanks to the healthy order backlog, the Board of Directors and Executive

Committee are cautiously optimistic about the remainder of the year. Kardex

Remstar should be able to hold its EBIT margin at the previous year's level

despite lower projected revenues. Kardex Mlog is expected to report a

positive result for the year. Even if the economy stabilizes, the Group

remains prepared to respond fast to renewed economic upheavals.


For the full interim report, please go to our website



Please note: Today, 22 August 2013, at 09:00 CEST, there will be an analyst

conference call (conference ID: 4635392) with Executive Director Felix

Thöni, Head of Finance and Controlling Thomas Reist and IR Contact Officer

Edwin van der Geest to discuss the half-year results. To take part, call:

+41 (0)22 592 73 12.



Contact for media and investors:

Edwin van der Geest

Investor Relations

Tel. +41 44 419 44 79

Tel. +41 79 330 55 22


Calendar of events:

12 September 2013 Company presentation at Investora

Hotel Marriott Zurich

25 September 2013 Extraordinary General Meeting

SIX Swiss Exchange, Zurich

13 March 2014 2013 year-end-closing, publication

of 2013 Annual Report

2014 Media and analysts'


24 April 2014 2014 Annual General Meeting

SIX Swiss Exchange, Zurich





Key figures

EUR millions

1 January to 30 June 2013 2012 +/-%

Bookings 249.3 109.7% 252.2 105.2% -1.1%

Order backlog (30 June) 174.1 76.6% 163.0 68.0% 6.8%

Net revenues 227.3 100.0% 239.8 100.0% -5.2%

Gross profit 59.8 26.3% 58.0 24.2% 3.1%

OPEX 45.2 19.9% 45.7 19.1% -1.1%

Operating result (EBIT) 14.6 6.4% 12.3 5.1% 18.7%

EBITDA 19.2 8.4% 17.6 7.3% 9.1%

Result for the period 10.8 4.8% 9.1 3.8% 18.7%

Earnings per share (EUR) 1.40 1.17 19.8%

Free cash flow 12.2 11.8 3.4%

Return on capital employed (ROCE) 22.6% 14.8%


30.06.2013 31.12.2012 +/- %

Net working capital 74.4 72.1 3.2%

Net cash positions ¹ 17.2 12.4 38.7%

Equity / Equity ratio 89.2 38.9% 85.4 36.2% 4.4%

Employees (full-time equivalents) 2'111 2'062 2.4%




1) Cash less interest bearing debt


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.




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.





Additional features:



Document title: Media information on the Half Year Closing 2013



22.08.2013 News transmitted by EQS Schweiz AG.

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Language: English

Company: Kardex AG

Thurgauerstrasse 40

8050 Zürich


Phone: +41 (0)44 419 44 79




ISIN: CH0100837282

Valor: A0RMWK

Listed: Freiverkehr in Berlin, München, Stuttgart;

Frankfurt in Open Market ; SIX


End of Announcement EQS Group News-Service





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