09.04.2020 BAUER Aktiengesellschaft  DE0005168108

DGAP-News: BAUER Aktiengesellschaft: BAUER AG closes the 2019 financial year with a loss


 

DGAP-News: BAUER Aktiengesellschaft / Key word(s): Annual Results/Forecast
BAUER Aktiengesellschaft: BAUER AG closes the 2019 financial year with a loss

09.04.2020 / 07:00
The issuer is solely responsible for the content of this announcement.


- At EUR 1,594.7 million, total Group revenues were 5.4% below the previous year's figure of EUR 1,686.1 million.
- EBIT of EUR 22.5 million (previous year: EUR 100.1 million) was affected by a negative valuation allowance of approx. EUR 40 million due to a decision on an appeal process. Earnings after taxes thus amounted to EUR -36.6 million (previous year: EUR 24.1 million).
- The order backlog rose by 1.4% to EUR 1,027.6 million compared to EUR 1,013.6 million in the previous year.
- Forecast for 2020: a slight increase in total Group revenues, a significant increase in EBIT and a significant increase in earnings after taxes into the positive area
 

Schrobenhausen - Despite getting off to a good start in 2019, the BAUER Group was unable to achieve its targets. This development resulted from several project postponements, primarily in the Far East, which had a very significant impact on the construction business. In addition, on March 18, 2020, the Group surprisingly received a negative verdict in appeal proceedings against an arbitration court decision from 2018, which was reported to the capital market in an ad-hoc announcement. This related to a construction project which was carried out in Hong Kong in 2011 and 2012 and in which substantial additional costs were incurred. Due to this verdict, a considerable negative valuation allowance of approximately EUR 40 million had to be made in the balance sheet, which consequently impacted the earnings figures to a significant extent.

"In 2019, we had to absorb some significant negative influence factors. Despite primarily good demand, project postponements led to underutilization. In addition, when we received the verdict in March this year, it came as a huge surprise to us and significantly affected our key figures just before our annual financial statements were completed," commented Michael Stomberg, Chairman of the Management Board of BAUER AG.

The BAUER Group achieved total Group revenues amounting to EUR 1,594.7 million in the 2019 financial year, 5.4% below the previous year's figure of EUR 1,686.1 million. EBIT fell sharply from EUR 100.1 million to EUR 22.5 million. At EUR -36.6 million, earnings after taxes were significantly in the negative range (previous year: EUR 24.1 million).

At EUR 1,027.6 million, the Group's order backlog remained at a very good level at the end of 2019 and was up slightly at 1.4% from the previous year's already high figure of EUR 1,013.6 million. Even though the markets are very volatile and have shown themselves to be far more difficult than in 2018, the Construction segment managed to win several very large orders and significantly increase the order backlog. The order backlog in the Equipment segment was noticeably below the previous year. In the Resources segment, the order backlog also decreased compared with the previous year. Order intake decreased by 6.6% to EUR 1,608.7 million, compared to EUR 1,721.9 million in the previous year.

In light of the significantly negative after-tax earnings, the BAUER Group's equity was noticeably reduced at the end of 2019. That is why it is important for the Group to sustainably improve the equity ratio again. The Management Board will therefore recommend that the Supervisory Board proposes to the Annual General Meeting that no dividends be distributed to the shareholders.

Business segments
With its three segments, Construction, Equipment and Resources, over 100 subsidiaries and a broadly diversified business model, the Group operates in around 70 countries all over the world.

The Construction segment achieved total Group revenues of EUR 668.8 million in the 2019 financial year, which fell significantly by 12.9% compared with the previous year's EUR 767.6 million. At EUR -19.9 million, EBIT was considerably negative (previous year: EUR 39.1 million). At EUR -52.7 million, earnings after taxes were negative. In the previous year, positive earnings of EUR 9.6 million were reported.

There was also overall growth in Germany and Europe, but performance varied greatly in the different markets. 2019 was a difficult year, particularly in the Far East and Australia, which were affected by a lack of orders and project postponements in particular. In addition, the above-mentioned verdict on the appeal against an arbitration court decision from 2018 resulted in a considerable valuation allowance in the balance sheet of approximately EUR 40 million shortly before the completion of the annual financial statements. This had a significant negative impact on the earnings figures for the Construction segment.

At EUR 638.6 million, the order backlog demonstrated a 16.7% increase, placing it significantly above the previous year's figure of EUR 547.3 million and therefore at a record level. At EUR 760.1 million, the order intake decreased by 7.6% from the previous year's figure of EUR 822.2 million.

In the Equipment segment, total Group revenues fell slightly by 1.3% from EUR 723.1 million in the previous financial year to EUR 713.6 million. Sales revenues also dropped by 4.7%, from EUR 640.1 million to EUR 610.2 million. Accordingly, EBIT decreased from EUR 74.9 million to EUR 61.2 million. Earnings after taxes rose from EUR 34.0 million to EUR 39.5 million, in particular because of a lower tax burden compared with the previous year.

Despite growth rates dropping in general, the segment reported a very good financial year again, with the markets in Europe and China as the primary driving forces behind this.

Order intake performed less well in the second half of the financial year just gone than in the previous year, although it should be noted that 2018 stood at a high level. Overall, it fell by 7.1% from EUR 723.7 million in the previous year to EUR 672.1 million. Order backlog at the end of 2019 was EUR 108.3 million, thus significantly below the previous year's level of EUR 150.0 million. 2019 also remained unchanged with respect to the order situation, with customers of equipment for specialist foundation engineering still placing orders at relatively short notice.

Total Group revenues in the Resources segment increased by 5.1%, from EUR 261.5 million in the previous year to EUR 274.9 million. EBIT decreased from EUR -11.0 million to EUR -16.2 million, and earnings after taxes were up from
EUR -16.0 million in the previous year to EUR -13.7 million, primarily due to better at-equity earnings.

Overall, the segment therefore fell short of expectations again in 2019. While earnings from the operating business improved significantly, underutilization in Jordan, a weak order situation in the business with brewery and beverage technology, further restructuring expenditure and adjustments for receivables from old projects primarily proved to be a burden.

At EUR 280.7 million, the order backlog at the end of the year was down 11.3% from the previous year's EUR 316.5 million. The decline is essentially due to progress on the large Kesslergrube project. At EUR 239.1 million, the order intake was just 1.3% below the previous year's value of EUR 242.2 million.

Financing
Net debt was EUR 563.7 million in the year under review, remaining approximately at the previous year's level of EUR 561.9 million. However, this was essentially due to the new IFRS 16 standard and the market valuation of derivatives. Pure bank debts saw further decreases, which demonstrates that the corresponding reduction measures have had an effect.

Given the above-mentioned verdict on appeal and the resulting necessary valuation allowance of approximately EUR 40 million, it was not possible to meet the covenants agreed with banks at the end of 2019. However, the Group expects that a good solution will be found together with the financial partners.

Effects of the coronavirus pandemic
Due to the effects of the deterioration in the economic situation resulting from the global coronavirus pandemic, the BAUER Group applied for short-time work for a number of its companies in Germany as of April 1, 2020. This primarily applies to the Schrobenhausen machine production location, but also many areas of construction operations and administration functions. "Overall, the effects of the coronavirus outbreak and the economic situation vary greatly and are difficult to accurately predict, even for us," said Michael Stomberg. "But we do need to react, as the situation has disrupted construction operations in many countries and will also affect our machine customers. For us, job security is our top priority."

Outlook
For the current 2020 financial year, the Group expects a slight increase in the total Group revenues, a significant increase in EBIT and a significant increase in earnings after taxes to the positive area. "Due to the good order situation, we generally expect to see positive developments. Yet our forecasts have become much more cautious as a result of the economic situation," said Michael Stomberg.


You can view the full annual report including a detailed analysis of the individual segments and submarkets online 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 a high potential for synergy: Construction, Equipment and Resources. The Construction segment offers new and innovative specialist foundation engineering services alongside the established ones, and carries out foundation and excavation work, cut-off walls and ground improvements worldwide. Bauer is a world 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 profits greatly from the collaboration between its three separate business divisions, enabling the Group to position itself as an innovative and 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 2019, it employed some 12,000 people in around 70 countries and achieved total Group revenues of EUR 1.6 billion. BAUER Aktiengesellschaft is listed in the Prime Standard segment of the German stock market.

More information can be found at http://www.bauer.de.


GROUP KEY FIGURES 2019 (IFRS)

  2018 2019 Change
  million EUR million EUR  
Total Group revenues 1,686.1 1,594.7 -5.4%
Of which      
- Germany 467.1 518.7 +11.1%
- International 1,219.0 1,076.1 -11.7%
Of which      
- Construction 767.6 668.8 -12.9%
- Equipment 723.1 713.6 -1.3%
- Resources 261.5 274.9 +5.1%
- Other/Consolidation -66.1 -62.6 n/a
Sales revenues 1,589.1 1,470.9 -7.4%
Order intake 1,721.9 1,608.7 -6.6%
Order backlog 1,013.6 1,027.6 +1.4%
EBITDA 198.6 123.0 -38.0%
EBIT 100.1 22.5 -77.5%
EBIT margin (of sales revenues) 6.3% 1.5% n/a
Earnings after taxes 24.1 -36.6 n/a
Total assets 1,632.3 1,628.5 -0.2%
Equity ratio 26.5% 23.8% n/a
Earnings per share in EUR 1.32 -2.17 n/a
Employees (annual average) 11,643 11,684 +0.4%

Contact:
Christopher Wolf
Investor Relations
BAUER Aktiengesellschaft
BAUER-Strasse 1
86529 Schrobenhausen, Germany
Phone: +49 8252 97-1797
Fax: +49 8252 97-2900
investor.relations@bauer.de
www.bauer.de


09.04.2020 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: investor.relations@bauer.de
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
EQS News ID: 1019003

 
End of News DGAP News Service

1019003  09.04.2020 

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Die wichtigsten Finanzdaten auf einen Blick
  2013 2014 2015 2016 2017 2018 2019 2020e
Umsatzerlöse1 1.404,17 1.375,68 1.378,99 1.396,88 1.667,86 1.589,09 1.470,92 1.500,00
EBITDA1,2 124,00 171,00 185,10 158,39 182,55 198,62 123,05 140,00
EBITDA-Marge3 8,83 12,43 13,42 11,34 10,95 12,50 8,37 9,33
EBIT1,4 32,08 76,43 90,72 68,35 89,57 100,06 22,48 60,00
EBIT-Marge5 2,28 5,56 6,58 4,89 5,37 6,30 1,53 4,00
Jahresüberschuss1 -19,43 15,73 28,99 14,41 3,67 24,09 -36,55 5,00
Netto-Marge6 -1,38 1,14 2,10 1,03 0,22 1,52 -2,48 0,33
Cashflow1,7 45,44 115,40 32,43 124,88 183,33 147,44 168,88 0,00
Ergebnis je Aktie8 -0,99 0,85 1,73 0,66 0,16 1,32 -2,17 0,25
Dividende8 0,00 0,15 0,15 0,10 0,10 0,10 0,00 0,00
Quelle: boersengefluester.de und Firmenangaben

  Geschäftsbericht 2019 - Kostenfrei herunterladen.  
1 in Mio. Euro; 2 EBITDA = Ergebnis vor Zinsen, Steuern und Abschreibungen; 3 EBITDA in Relation zum Umsatz; 4 EBIT = Ergebnis vor Zinsen und Steuern; 5 EBIT in Relation zum Umsatz; 6 Jahresüberschuss (-fehlbetrag) in Relation zum Umsatz; 7 Cashflow aus der gewöhnlichen Geschäftstätigkeit; 8 in Euro; Quelle: boersengefluester.de

Wirtschaftsprüfer: PricewaterhouseCoopers

INVESTOR-INFORMATIONEN
©boersengefluester.de
Bauer
WKN Kurs in € Einschätzung Börsenwert in Mio. €
516810 9,000 Halten 154,18
KGV 2021e KGV 10Y-Ø BGFL-Ratio Shiller-KGV
13,85 16,19 0,841 17,51
KBV KCV KUV EV/EBITDA
0,40 0,91 0,10 6,567
Dividende '19 in € Dividende '20e in € Div.-Rendite '19e
in %
Hauptversammlung
0,00 0,00 0,00 25.06.2020
Q1-Zahlen Q2-Zahlen Q3-Zahlen Bilanz-PK
13.05.2020 13.08.2020 13.11.2020 09.04.2020
Abstand 60Tage-Linie Abstand 200Tage-Linie Performance YtD Performance 52 Wochen
-3,13% -17,23% -40,40% -36,97%
    
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