13.04.2017
BAUER Aktiengesellschaft DE0005168108
DGAP-News: BAUER Aktiengesellschaft: BAUER AG has started to turn its business operations around in 2016
DGAP-News: BAUER Aktiengesellschaft / Key word(s): Final Results/Forecast
BAUER Aktiengesellschaft: BAUER AG has started to turn its business
operations around in 2016
13.04.2017 / 07:00
The issuer is solely responsible for the content of this announcement.
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- Total Group revenues are EUR 1,586.1 million (previous year: EUR 1,656.4
million); sales revenues are up by 1.3 % to EUR 1,396.9 million (previous
year: EUR 1,379.0 million)
- Earnings after tax at EUR 14.4 million (previous year: EUR 29.0 million)
are towards the top of the latest forecast range of about EUR 10 to 15
million
- Order backlog is at a high level: growth of 1.3 % to EUR 1,008.1 million
- Proposed dividend for 2016: EUR 0.10 per share
- Forecast for 2017: Group expects total Group revenues of around EUR 1.7
billion, earnings after tax of around EUR 23 to 28 million and EBIT of
around EUR 75 million.
Schrobenhausen/Munich - The BAUER Group's results for the 2016 year are in
line with the most recent forecast issued in November. However, it hasn't
been able to achieve its original objectives. "From an operational
perspective our figures were much better than in the previous year and we
have reached a turnaround", says Prof. Thomas Bauer, the Chairman of the
Management Board of BAUER AG when presenting the balance sheet. The previous
year's figures included special effects and are therefore not fully
comparable.
The BAUER Group achieved total Group revenues amounting to EUR 1,586.1
million in 2016, 4.2 % below the previous year's figure of EUR 1,656.4
million. The previous year's figure included revenues from the divestment
and revaluation of businesses amounting to EUR 77.8 million, primarily
relating to the deep-drilling joint venture with Schlumberger. Total Group
revenues were roughly on a par with the previous year if this influence is
excluded. Sales revenues grew by 1.3 % from EUR 1,379.0 million to EUR
1,396.9 million. EBIT came in at EUR 68.3 million (previous year: EUR 90.7
million). The above-mentioned additional revenues also had an effect on the
previous year's EBIT figure. Earnings after tax were EUR 14.4 million
(previous year: EUR 29.0 million). The excellent order situation provides a
good basis for further development. In the fourth quarter in particular the
company saw a pick-up in its order intake, and the order backlog at year end
was consequently EUR 1,008.1 million, 1.3 % above the previous year's level.
The syndicated loan, which was agreed upon in 2014, was renewed for another
three years in 2016. It has a volume of EUR 430 million and extends until
July 2019 with the option of renewal. A value agreed with lenders as a
covenant was not able to be fully adhered to in the 2016 year due to the
results being below the original forecast. An amicable solution has already
been found with all relevant financial partners for all of the affected
loans. For 2017 the company assumes that it will once again fulfill the
agreed values as a result of the planned development of earnings.
The Management Board and Supervisory Board will propose to the Annual
General Meeting that a slightly reduced dividend of EUR 0.10 per share
(previous year: EUR 0.15) should be paid for 2016. The dividend quota
consequently increases from 8.7 % to 15.2 %. The reduction in the dividend
also serves to protect the Group's equity, which we intend to significantly
improve in the coming years.
Business segments
With its three segments - Construction, Equipment and Resources - and more
than 110 subsidiaries as well as its broadly diversified business model, the
Group operates in some 70 countries around the world.
The Construction segment benefits from the overall positive development of
the construction markets around the world. Despite the many uncertainties
and crisis hot spots, there is a great need for infrastructure such as
roads, bridges, dams or power supply infrastructure. Increasing urbanization
brings an increased need for specialist foundation engineering services
which enable buildings to be erected in increasingly complex and difficult
conditions.
In total, the segment generated total Group revenues of EUR 722.1 million in
2016. This was 2.8 % below the previous year's figure (EUR 742.9 million).
EBIT was up from EUR 13.9 million to EUR 30.4 million. Earnings after tax
were EUR 9.5 million - compared to a negative figure of EUR -7.3 million in
the previous year, which was mainly caused by the subsidiary in the USA. The
completion of the Center Hill Dam project created a considerable financial
burden and necessitated a realignment of the subsidiary.
In 2016, the segment suffered losses at the construction companies in Hong
Kong and Malaysia. In Malaysia, the award of three large projects was
delayed several times, which meant that capacities were unable to be
utilized for almost six months. In Hong Kong, Bauer carried out preliminary
works for an expansion of the airport but ultimately was not awarded the
contract. Both caused an overall loss amounting to well over EUR 10 million,
which by itself explains the difference between the Group's original
forecast and the final result. In contrast to this, the segment achieved
additional earnings of just over EUR 10 million which are attributable to
the participation in Wöhr + Bauer GmbH. The company achieved a very good
operating profit in the financial year; Bauer has also reduced its holding
to 16.67 %.
At EUR 585.3 million, the order backlog represented a slight 1.0 % decrease
compared to the previous year (EUR 591.1 million). The order backlog in core
business of specialist foundation engineering increased considerably since
the previously included order backlog of the real estate company Wöhr +
Bauer GmbH is no longer included in the figures for the 2016 financial year.
The Equipment segment has achieved a good performance in a difficult market
environment. Growth in large-scale and special equipment had a positive
impact on earnings. Sales of anchor drilling rigs and rotary drives were
very satisfactory. The service and spare parts business has established
itself as an important area of activity.
Total Group revenues fell by 13.5 % from EUR 753.1 million to EUR 651.7
million. Thereby, it must be considered that 2015 included the
aforementioned revenues amounting to EUR 77.8 million from the divestment
and revaluation of businesses. Sales revenues fell slightly by 1.0 %, from
EUR 548.0 million to EUR 542.7 million. The deep-drilling business - which
is now a joint venture with Schlumberger - is no longer included in 2016, so
that the figure is entirely attributable to the core specialist foundation
equipment business and consequently shows growth. This all the more
commendable given that the global construction machinery market recorded a
decline of roughly 28 % between 2012 and 2015. Over the same period Bauer
managed to keep its revenues more or less stable. EBIT fell from EUR 99.4
million to EUR 37.0 million. EBIT grew considerably if the aforementioned
effects of EUR 77.8 million are stripped out of the 2015 figures. Earnings
after tax reduced from EUR 65.4 million to EUR 10.9 million.
The order backlog was EUR 144.0 million, 12.4 % up on the previous year's
figure of EUR 128.1 million. In the fourth quarter a good order intake was
recorded. This meant that the order backlog at year end was at roughly the
same level as during the rest of the year, despite the usually high level of
orders delivered at this time of year.
In the Resources segment the Group started the current financial year with a
new organizational structure. The extensive restructuring was completed by
the end of the year, so the segment can now focus on the operative business
again under the BAUER Resources GmbH umbrella.
Total Group revenues recorded an increase of 19.5 % to EUR 264.7 million.
EBIT improved from EUR -19.8 million to EUR -3.2 million and earnings after
tax were up from EUR -29.4 million to EUR -8.5 million. The order backlog
was EUR 278.8 million, 0.8 % higher than the previous year's figure of EUR
276.5 million. Bauer's involvement in the remediation works at the
Kesslergrube landfill site in Grenzach-Wyhlen, the largest order in the
company's history, will continue until 2020. With its realignment and
improved order backlog, the company expects to return the segment to profit
in the next two years.
Order backlog and outlook
A very positive order situation forms the basis of the BAUER Group's current
financial year. The order backlog increased to EUR 1,008.1 million by the
end of 2016 and was consequently 1.3 % above the previous year's figure of
EUR 995.6 million.
"In operative terms we have improved significantly and have taken a big step
forward. We have realigned some business operations and withdrawn from some
markets, but we are not stopping there. We have identified further areas,
such as human resources, purchasing and production, and we are working on
making them more efficient", says Prof. Thomas Bauer. "These efforts and the
very good order situation offer us the opportunity to achieve a sustainable
improvement in our profitability."
For the current financial year the Group expects total Group revenues of
around EUR 1.7 billion, earnings after tax of around EUR 23 to 28 million,
and EBIT of around EUR 75 million. We are continuing to plan for growth of
between 3 % and 8 % in total Group revenues for the coming years.
Our full Annual Report, including a detailed analysis of the individual
segments and markets, can be found on our website at http://www.bauer.de.
About Bauer
The BAUER Group is a leading provider of services, equipment and products
related to ground and groundwater. With over 110 subsidiaries, Bauer
operates a worldwide network on all continents.
The operations of the Group are divided into three future-oriented segments
with high synergy potential: Construction, Equipment and Resources. The
Construction segment offers new and innovative specialist foundation
engineering services alongside the established ones, and it carries out
foundation and excavation work including cut-off walls and ground
improvements on a worldwide basis. Bauer is a global market leader in the
Equipment segment and provides a full range of equipment for specialist
foundation engineering as well as for the exploration, mining and extraction
of natural resources. In the Resources segment, Bauer focuses on highly
innovative products and services in the areas of water, environment and
natural resources.
Bauer benefits greatly from the collaboration between its three separate
segments, enabling the Group to position itself as an innovative, highly
specialized provider of products and services for demanding projects in
specialist foundation engineering and related markets. Bauer therefore
offers appropriate solutions for the world's major challenges, such as
urbanization, growing infrastructure needs, the environment, and water, oil
and gas.
The BAUER Group was founded in 1790 and is based in Schrobenhausen, Bavaria.
In 2016 it employed some 10,800 people in around 70 countries and achieved
total Group revenues of EUR 1.6 billion. BAUER Aktiengesellschaft is listed
in the Prime Standard of the German stock market.
More information can be found at http://www.bauer.de.
GROUP KEY FIGURES 2016 (IFRS)
2015 2016 Change
in EUR in EUR
million million
Total Group revenues 1,656.4 1,586.1 -4.2 %
of which
- Germany 473.7 481.0 +1.6 %
- International 1,182.7 1,105.1 -6.6 %
of which
- Construction 742.9 722.1 -2.8 %
- Equipment 753.1 651.7 -13.5
%
- Resources 221.6 264.7 +19.5
%
- Other/Consolidation -61.2 -52.4 n/a
Consolidated revenues 1,587.9 1,488.6 -6.3 %
Sales revenues 1,379.0 1,396.9 +1.3 %
Order intake 1,811.4 1,598.6 -11.8
%
Order backlog 995.6 1,008.1 +1.3 %
EBITDA 185.1 158.4 -14.4
%
EBITDA margin (as percent of sales 13.4 % 11.3 % n/a
revenues)
EBIT 90.7 68.3 -24.7
%
EBIT margin (as percent of sales 6.6 % 4.9 % n/a
revenues)
Earnings after tax 29.0 14.4 -50.3
%
Equity 451.2 434.1 -3.8 %
Equity ratio 27.2 % 25.5 % n/a
Earnings per share in EUR 1.73 0.66 -61.8
%
Employees (average number during the 10,738 10,771 +0.3 %
year)
Contact:
Christopher Wolf
Investor Relations
BAUER Aktiengesellschaft
BAUER-Strasse 1
86529 Schrobenhausen, Germany
Phone: +49 8252 97-1797
Fax: +49 8252 97-2900
[email protected]
www.bauer.de
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13.04.2017 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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Language: English
Company: BAUER Aktiengesellschaft
BAUER-Straße 1
86529 Schrobenhausen
Germany
Phone: +49 (0)8252 97 1218
Fax: +49 (0)8252 97 2900
E-mail: [email protected]
Internet: www.bauer.de
ISIN: DE0005168108
WKN: 516810
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover,
Munich, Stuttgart, Tradegate Exchange
End of News DGAP News Service
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