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Kardex AG: Kardex completes its strategic realignment

Media information Zürich, 13. März 2014 Kardex Group Financial year 2013: Kardex completes its strategic

Kardex AG / Key word(s): Final Results


13.03.2014 06:00


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



Media information


Zürich, 13. März 2014


Kardex Group


Financial year 2013: Kardex completes its strategic realignment and is

ready to grow organically


In the 2013 financial year, the Kardex Group completed the restructuring

process begun in 2011, as well as its strategic realignment. Kardex is now

well positioned to achieve organic growth in its two divisions, Kardex

Remstar and Kardex Mlog. During the year under review, the Kardex Stow

Division was sold, Kardex Mlog was successfully turned around, and further

investment was made in the future growth of Kardex Remstar. Despite the

divestment of Kardex Stow as of 31 July 2013, the Group was able to exceed

the previous year's operating result. The Board of Directors will propose

to the Annual General Meeting that an ordinary dividend of CHF 1.25 per

share should be paid, together with the entire book gain from the sale of

Kardex Stow based on the consolidated group result, which corresponds to a

dividend of CHF 1.40 per share.


The consolidated annual result of the Kardex Group is not comparable with

the figure for the previous year, since the results for Kardex Stow are

included only until the end of July 2013. The Kardex Group reported

bookings of EUR 410.7 million in the year under review, and net revenues

came to EUR 399.3 million. EBIT of EUR 37.8 million includes a book gain of

EUR 8.8 million from the sale of the Stow Division. The net result was EUR

31.5 million. This represents earnings per share of CHF 4.95.


Taking into account the pro forma accounting for the continuing operations

(see segment reports in the Annual Report 2013), i.e. excluding the Stow

results, the figures are comparable to those for the previous year.

Bookings for both divisions thus picked up again after a weaker second half

of 2012 to reach EUR 301.5 million, which is nearly the same as the

previous year (EUR 305.2 million). At the end of 2013, the order backlog of

EUR 105.2 million was also similar to the previous year's (EUR 106.3

million). Net revenues of EUR 302.1 million were down 1.9% compared with

the strong sales recorded in the previous year, but the year-on-year

shortfall of 6.1% that existed on 30 June 2013 was almost eliminated in the

second half of the year. The operating result (EBIT) of EUR 24.2 million

corresponds to an EBIT margin of 8.0%, up 30.8% on the previous year (EUR

18.5 million). This big improvement is due in particular to the turnaround

of Kardex Mlog (+EUR 4.2 million), as well as to a further increase in the

profitability of Kardex Remstar (EBIT margin 10.2%). The return on capital

employed (ROCE) stood at 28.7% (previous year: 21.2%).


Kardex Remstar profits from efficiency improvements


The 2013 financial year began rather sluggishly for Kardex Remstar. This

was owing to a cautious attitude to ordering in most industrial markets

from mid-2012 onwards. Bookings and revenue growth started to recover in

spring, and the shortfall in the first half was nearly compensated by the

end of the year. Revenues of EUR 235.4 million in the Kardex Remstar

Division were slightly below the figure for the previous year (EUR 236.7

million), but at the end of the year the order backlog of EUR 75.1 million

was up by 8.2%. Overall, bookings rose by 3.3% to EUR 241.4 million. In

2013 the service business generated 28.6% of revenues (previous year:

27.9%). The operating result of EUR 24.0 million for Kardex Remstar is up

3.9% on the previous year and represents an EBIT margin of 10.2%, resulting

in particular from further efficiency improvements along the entire value



In 2013 Kardex Remstar invested significantly in its future growth. The

sales department took on more staff and was restructured in Asia/Pacific.

At the same time, a new vertical carousel for smaller loads was

successfully launched on the market, thus further expanding this product

family. In addition, further steps on the way to changing Kardex Remstar

from a product manufacturer into a solutions provider were demonstrated at

a variety of trade fairs and customer events. In July 2013, the spare parts

centre for Europe came into operation at the Bellheim site. This will

enable the Group to make further efficiency improvements and provide

enhanced customer service.


Turnaround achieved at Kardex Mlog


Kardex Mlog reported 6.0% lower revenues than in the previous year at EUR

67.0 million. At EUR 60.6 million, bookings were also 16.1% below the

previous year's figure. This development 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. The gross profit for greenfield

installations and modernization business was therefore significantly higher

than in the same period of the previous year. The service business also

grew as planned, to 17.6% of revenues (previous year: 15.7%), up 5.8% on

the previous year. At EUR 1.2 million (previous year: EUR -3.0 million),

operating profit was positive - although only to a modest extent - for the

first time since the company was purchased in 2010. Thanks to the

provisions made in the previous year, it was possible in the year under

review to settle almost all the issues still outstanding from the problem

projects of previous years. Collaboration with Kardex Remstar was

intensified thanks to the successful integration of the Remstar order

picking software into stand-alone systems of Mlog (M-Dynamic product



Kardex Stow sold on 31 July 2013


The Kardex Stow Division, part of the Kardex Group only until 31 July 2013,

contributed net revenues of EUR 98.0 million and an operating result of EUR

4.8 million. Sales were thus slightly lower than in the corresponding

previous year period, while the EBIT margin was unchanged at 4.9%.


As has already been reported, the Board of Directors of Kardex AG reviewed

all the strategic options for Kardex Stow in the previous year. The sale of

this division to the French-based Averys Group, as announced on 8 May 2013

and completed on 31 July 2013, opens up new prospects for the Stow

business. The two companies are a good fit both geographically and



The Kardex Group gained a cash inflow of EUR 76.9 million gross from the

sale, including the repayment of the intercompany debt, and a book gain of

EUR 8.8 million. This divestment gain is obtained after adjusting for

goodwill of EUR 23.1 million already written off in accordance with Swiss

GAAP FER. At an extraordinary general meeting held on 25 September 2013,

the distribution of a special dividend of CHF 4.00 per share from capital

contributions was approved. This is roughly equivalent to the capital

generated by the capital increase in September 2011, which is thus being

returned to the shareholders. Furthermore, the Group's remaining bank debts

of EUR 10 million was repaid.


Completion of the strategic realignment


The divestment of Kardex Stow also completed the strategic realignment of

the Kardex Group that began in 2012. The focus on automatic storage systems

and material flow solutions by the two entrepreneurially managed divisions

Kardex Remstar and Kardex Mlog, together with the associated service

business, is helping to achieve strong customer retention and attractive

returns on capital employed. Kardex intends to invest its unappropriated

funds in a careful and focused manner in order to continue expanding its

already strong market position in this attractive and growing industry.


Further improvements in capital management


The strong balance sheet and further progress in capital management provide

room for manoeuvre and increased flexibility. The accounts receivable and

inventories of Kardex Remstar and Kardex Mlog fell by a further EUR 3.2

million (4.0%). On the liabilities side, accelerated payments of suppliers

invoices resulted in an additional income of EUR 1.2 million from early

payment discounts.


Despite the distribution of the ordinary dividend of EUR 7.5 million in

April 2013 and the special dividend of EUR 25.2 million in October 2013,

the net cash position rose to EUR 77.0 million at the end of the year. This

was owing to net cash inflow of EUR 36.3 million from operations and in

addition the net cash inflow of EUR 63.9 million from the sale of Stow. The

Group's equity ratio stood at solid 55.9% as at 31 December 2013 (31

December 2012: 36.2%).


Proposals to the Annual General Meeting


The Board of Directors of the Kardex AG has reviewed its dividend policy in

view of the results achieved and the further increase in the balance sheet

total following the sale of Kardex Stow. It is adhering to the current

payout ratio of a maximum of 35% of operating profit, and will therefore

propose to the Annual General Meeting to declare a dividend of CHF 1.25 per

share, which will be paid out from the capital contribution reserve and is

therefore tax free for Swiss individuals. Furthermore, the Board of

Directors is proposing to pay out the entire book gain of EUR 8.8 million,

or CHF 1.40 per share, from the sale of the Kardex Stow Division to the

shareholders (also from the capital contribution reserve).


Cautiously optimistic outlook


Thanks to the healthy order backlog and the groundwork already completed,

the Board of Directors and Executive Committee are cautiously optimistic

about the 2014 financial year. Kardex Remstar should be able to grow again

while holding its gross margin at the previous year's level. Kardex Mlog

needs to reinforce the turnaround and demonstrate the sustainability of its

business model for 2014.




Edwin van der Geest

Investor Relations

Tel. +41 79 330 55 22






24 April 2014 Annual General Meeting SIX Swiss Exchange, Zurich

21 August 2014 Interim Report 2014

12 March 2015 2014 Media and analysts' conference year-end closing 2014

Publication Annual Report 2014

23 April 2015 Annual General Meeting SIX Swiss Exchange, Zurich

13 August 2015 Interim Report 2014




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.



Key figures

EUR millions

1 January to 31 December 2013 (%) 2012 (%) +/-%


Bookings 410.7 102.9% 489.7 101.1% -16.1%

Order backlog (31

December) 105.2 26.3% 154.9 32.0% -32.1%

Net revenues 399.3 100.0% 484.4 100.0% -17.6%

Gross Profit 113.7 28.5% 118.4 24.4% -4.0%

OPEX 84.7 21.2% 90.8 18.7% -6.7%

Gain of sale of the

Kardex Stow Division 8.8 2.2% 0.0 0.0% n. a.

Operating result (EBIT) 37.8 9.5% 27.6 5.7% 37.0%

EBITDA 46.1 11.5% 37.7 7.8% 22.3%

Result for the period 31.5 7.9% 21.4 4.4% 47.2%

Earnings per share (EUR) 4.08 2.77 47.3%

Free cash flow 93.9 28.4 230.6%

ROCE (continued

operations) 28.7% 21.2% 35.4%


31.12.13 31.12.12 +/- %

Net working capital 54.4 72.1 -24.5%

Net cash 77.0 12.4 521.0%

Equity / Equity ratio 106.9 55.9% 85.4 36.2% 25.2%

Employees (full-time

equivalents) 1 447 2 062 -29.8%







Additional features:


Document title: Media information YEC 2013



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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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