12.04.2018
BAUER Aktiengesellschaft DE0005168108
DGAP-News: BAUER Aktiengesellschaft: BAUER AG significantly increased its operating profitability in the 2017 financial year
DGAP-News: BAUER Aktiengesellschaft / Key word(s): Final Results/Forecast
BAUER Aktiengesellschaft: BAUER AG significantly increased its operating
profitability in the 2017 financial year
12.04.2018 / 07:00
The issuer is solely responsible for the content of this announcement.
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- Total Group revenues grew by 14.0% to EUR 1,772.0 million. Sales revenues
increased by 19.4% to EUR 1,667.9 million.
- EBIT increased by 27.5% to EUR 89.6 million. Earnings after taxes totaled
EUR 3.7 million.
- Order intake increased by 11.1% to EUR 1,741.7 million. Order backlog
remains high at EUR 977.8 million.
- Proposed dividend for 2017: EUR 0.10 per share
- Forecast for 2018: Group expects total Group revenues of around EUR 1.8
billion and EBIT of about EUR 90 million. Earnings after tax are expected to
be significantly higher than in the previous year.
Schrobenhausen/Munich - The BAUER Group has significantly increased its
operating profitability. This was the central message regarding the business
performance in 2017 at today's annual press conference. "In 2017, we
recorded above-average growth and further improved our operating
profitability," said Prof. Thomas Bauer, Chairman of the Management Board of
BAUER AG. "This enabled us to continue the turnaround that we initiated in
2016 and is a very good foundation for the future development of the
company."
In 2017, the BAUER Group significantly increased both total Group revenues
and sales revenues. Total Group revenues grew by 14.0% to EUR 1,772.0
million. Sales revenues increased by 19.4% to EUR 1,667.9 million. EBIT
increased by 27.5% from EUR 70.3 million to EUR 89.6 million. Earnings after
tax were EUR 3.7 million (previous year: EUR 14.4 million). Two
non-operating effects had a negative impact: significant foreign currency
losses and the necessary reassessment of receivables in the balance sheet as
a result of the Hong Kong arbitration case (Construction segment). In
addition, there were negative results in the Resources segment.
The order situation provides a good basis for further development. Order
intake increased by 11.1% to EUR 1,741.7 million. As a result, the order
backlog at the end of the year was at a high level, totaling EUR 977.8
million (previous year: EUR 1,008.1 million).
The Management Board and Supervisory Board will propose to the Annual
General Meeting that a unchanged dividend amounting to EUR 0.10 per share
should be paid for 2017.
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 is benefiting from the global growth in
construction markets. 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 2017, we succeeded in significantly increasing total Group revenues by
utilizing the good market situation and processing the large order backlog.
With an increase of 17.1% to EUR 835.0 million, there was significant growth
compared to the previous year's EUR 713.1 million. At EUR 19.6 million, EBIT
was below the expectations and the previous year's figure of EUR 29.7
million. Earnings after tax were down considerably at EUR -15.2 million,
whereas earnings in the previous year were positive at EUR 9.5 million. The
outcome of an arbitration case and significant foreign currency losses had a
negative impact. As a result, the segment's earnings figures fell well short
of expectations. This was caused by a long-standing arbitration case for a
project completed in Hong Kong in 2012. Although the verdict was in Bauer's
favor, it necessitated a reassessment of the receivables in the balance
sheet by more than EUR 20 million.
At EUR 492.7 million, the order backlog was 15.8% below the previous year's
figure of EUR 585.3 million. This is mainly due to the fact that a number of
large projects have been completed.
The Equipment segment benefited from the expanding markets in Europe and
Asia and has increased sales revenues and earnings substantially. In
particular, the sales figures for large-scale and special equipment were
noticeably higher than in the previous year. The improved operating results
of subsidiaries also contributed to the improved performance in the past
financial year. The competitive environment has gradually returned to
normal. While the past few years were dominated by excess capacity in China,
fewer Chinese manufacturers are present in the market today.
Total Group revenues increased by 18.9% from EUR 634.4 million to EUR 754.5
million. Sales revenues also grew by 21.8%, from EUR 542.7 million to EUR
660.9 million. Accordingly, EBIT increased considerably from EUR 38.4
million to EUR 80.6 million, and earnings after taxes increased from EUR
10.9 million to EUR 41.0 million.
Order intake was better than expected in 2017, rising significantly by 16.8%
to EUR 759.9 million (previous year: EUR 650.3 million). Due to
significantly increased production volumes and fast delivery of equipment,
the order backlog was quickly processed on a repeated basis. The order
backlog at the end of 2017 was EUR 149.3 million, remaining close to the
previous year's level of EUR 144.0 million.
The Resources segment fell short of our expectations in the year gone by.
The subsidiary in Jordan had a significant negative impact on performance.
Excess capacity there led to more substantial financial burdens. In
addition, the subsidiary that manufactures equipment for brewing and
beverage technology was negatively impacted in 2017 by an unprofitable
project that has since been completed. Although many restructurings within
the segment are already taking effect, some areas and companies need further
measures, which have since been initiated.
Total Group revenues decreased by 5.4% from EUR 262.4 million in the
previous year to EUR 248.2 million. EBIT decreased from EUR -3.7 million to
EUR -10.0 million and earnings after tax were down from EUR -8.5 million to
EUR -22.4 million.
The order backlog at the end of the year increased by 20.4% to EUR 335.8
million (previous year: EUR 278.8 million). A successful project has had a
positive impact here: In October, the expansion of the largest reed bed
treatment plant in the world in Oman was commissioned. This large-scale
project is worth about EUR 160 million. The construction phase, which
accounts for around a quarter of the order volume, will last until the end
of 2019.
Net debt was significantly reduced
Exchange rate fluctuations had a major impact on earnings after tax in the
year under review: The balance between gains and losses changed
significantly, from EUR -1.9 million in the previous year to EUR -22.5
million. The foreign exchange result is now reported under financial income
or expenses instead of other income or other operating expenses, and the
figures for the previous year have been adjusted accordingly.
Contrary to the strong increase in revenues, the BAUER Group significantly
improved the balance sheet structure in 2017. Total assets fell by 3.8% to
EUR 1,617.7 million. The increase in sales in the Equipment segment as well
as various measures have succeeded in significantly reducing net debt, which
fell by 12.3% or EUR 83.2 million to EUR 593.7 million, a level Bauer last
recorded in 2012. At 25.9%, the equity ratio was at the previous year's
level of 25.8%.
Outlook
For the current financial year, the Group expects total Group revenues of
around EUR 1.8 billion and EBIT of around EUR 90 million. Earnings after tax
are expected to be significantly higher than in the previous year. Plannings
continue to foresee growth of between 3% and 8% in total Group revenues for
the coming years.
Digitization is one area that the company will focus on intensively in the
coming years. At the beginning of 2018, Bauer expanded the Management Board
with Florian Bauer, who also manages the Corporate Culture function.
"Digitization is a topic that will affect all economic players in the coming
years," says Prof. Thomas Bauer. "It's changing the way we live and work at
a tremendous pace. This will change society as well as companies. As a
family-run company, Bauer is defined by its values, and these values must be
reconciled with the challenges of digital and social change."
The full Annual Report, including a detailed analysis of the individual
segments and markets, can be found on the 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
mineral reserves.
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 2017 it employed some 11,000 people in around 70 countries and achieved
total Group revenues of EUR 1.8 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 2017 (IFRS)
2016* 2017 Chang-
e
in EUR in EUR
million million
Total Group revenues 1,554.7 1,772.0 +14.0-
%
of which
- Germany 472.9 477.8 +1.1%
- International 1,081.8 1,294.2 +19.6-
%
of which
- Construction 713.1 835.0 +17.1-
%
- Equipment 634.4 754.5 +18.9-
%
- Resources 262.4 248.2 -5.4%
- Other/Consolidation -55.2 -65.7 n/a
Sales revenues 1,396.9 1,667.9 +19.4-
%
Order intake 1,567.1 1,741.7 +11.1-
%
Order backlog 1,008.1 977.8 -3.0%
EBITDA 160.3 182.6 +13.9-
%
EBIT 70.3 89.6 +27.5-
%
EBIT margin (as percent of sales 5.0% 5.4% n/a
revenues)
Earnings after tax 14.4 3.7 -74.6-
%
Total assets 1,681.8 1,617.7 -3.8%
Equity ratio 25.8% 25.9% n/a
Earnings per share in EUR 0.66 0.16 -75.8-
%
Employees (average number during the 10,771 10,913 +1.3%
year)
* The previous year's figures were adjusted; see 2017 Annual Report, page
93.
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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12.04.2018 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
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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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