06.11.2014
BayWa AG DE0005194062
DGAP-News: BayWa presents figures for the first nine months of 2014: Energy and Building Materials continue positive development - low grain prices impact results in Agriculture
DGAP-News: BayWa AG / Key word(s): Quarter Results
BayWa presents figures for the first nine months of 2014: Energy and
Building Materials continue positive development - low grain prices
impact results in Agriculture
06.11.2014 / 10:30
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BayWa presents figures for the first nine months of 2014: Energy and
Building Materials continue positive development - low grain prices impact
results in Agriculture
The performance of BayWa AG, Munich, Germany, was characterised by highly
varied business development in the individual segments in the first nine
months of the current year. The international trade and services company's
revenues amounted to around EUR11.4 billion as at 30 September 2014 (2013:
EUR12.2 billion). EBIT amounted to EUR74.5 million (2013: EUR177.7
million). The major difference in EBIT between the results of the first
nine months of 2013 and 2014 is attributable to one-off effects in the
previous year, which included the accounting profit from the sale of real
estate packages. The segments' operating EBIT totalled EUR111.4 million
(2013: EUR133.8 million) in the first nine months of the year. EBIT was
also affected by this year's low price situation in agricultural trade.
BayWa's agricultural business made a significantly smaller contribution to
earnings on account of high harvest volumes both for grain and fruit as
well as constantly falling prices for agricultural products. Development in
agricultural resources as well as the Energy and Building Materials
Segments, which remained highly positive, was unable to completely absorb
the market impact in agricultural trade. The international project business
in the field of renewable energies, which recorded a year-on-year doubling
of EBIT in the first nine months of the year, made a particularly
significant contribution to the consolidated result. The Building Materials
Segment also increased its result year on year as at 30 September 2014.
"I am optimistic that we will be able to match or perhaps even exceed last
year's results in Energy and Building Materials," Chief Executive Officer
Klaus Josef Lutz said with an eye towards the results for 2014 as a whole.
In contrast, the markets, especially in grain trade - which are
characterised by a large harvest, low prices and the reluctance so far on
part of producers and industry to part with and buy the produce - will
present BayWa with a major challenge in the final quarter of 2014, he
explained. As a result, he added, it seems unrealistic that the company
will match last year's results in Agriculture. At the same time, this
market situation also offers clear opportunities thanks to the availability
of good production volumes, both in terms of quantity and quality,
according to Lutz. The associated marketing opportunities will probably
extend well into the next year, he said.
The company is constantly working to expand its business internationally to
continue increasing BayWa's market opportunities in the field of
agriculture, the Chief Executive Officer emphasised, and pointed out the
planned reorganisation of the national fruit business at the end of the
year. This reorganisation is aimed at orienting the national fruit business
more towards international markets and, most importantly, allowing it to
benefit from an opening of sales channels to Asia. "The opening of a
Cefetra branch in Italy is a first step towards serving southern European
markets and is also of importance in view of our strategy of being the
leading European company in agricultural trade, distribution and logistics
with a global focus," Klaus Josef Lutz explained.
Agricultural Trade: large harvest volumes and low prices impact results
In a market environment characterised by low prices and high harvest
volumes, the BayWa Group generated revenues of around EUR7.7 billion as at
30 September 2014 (2013: EUR8.3 billion) in the Agriculture Segment, which
comprises trading in agricultural resources and produce as well as the
Fruit and Agricultural Equipment business units. EBIT totalled around
EUR69.8 million (2013: EUR103.3 million) in the first nine months of the
year.
In the Agricultural Trade business unit, the reporting period was
characterised by high global harvest volumes and the resulting major
declines in prices for grain, oilseed and feedstuffs. Prices started to
bottom out towards the end of the third quarter, leading to an increase in
willingness to buy and sell. The domestic sluggishness in trade had a less
significant impact on the international grain business. As a result,
Cefetra recorded stable sales, but at significantly lower margins due to
the price trend. Against this backdrop, revenues in Agricultural Trade
amounted to EUR6.3 billion as at 30 September 2014 (2013: EUR6.9 billion)
as a result of price development. EBIT amounted to EUR40.3 million (2013:
EUR66.1 million). Larger amounts of grain collected compared to the
previous year and the increase in grain prices since mid-October mean that
there is indeed earnings potential for this year's harvest with respect to
the rest of the marketing season.
The Group's fruit trading activities recorded growing demand during the
summer months. Revenues came to EUR432.7 million as at 30 September 2014
(2013: EUR450.0 million). EBIT amounted to EUR15.9 million (2013: EUR21.0
million). The positive development of sales is due both to catch-up effects
in BayWa's domestic sales regions as well as the positive marketing season
for apples from the southern hemisphere produced by New Zealand majority
holding Turners & Growers Limited. However, the very high apple-harvest
volume in Europe in combination with the Russian ban on European fruit
imports led to falling prices and corresponding pressure on trading
margins. As a result, EBIT was down slightly year on year.
The Agricultural Equipment business unit generated revenues of EUR971.9
million as at 30 September 2014 (2013: EUR981.7 million). EBIT amounted to
EUR13.6 million (2013: EUR16.2 million). Although the Agricultural
Equipment business unit's figures are still down slightly on the same
period in the previous year, which was characterised by recovery effects,
BayWa expects to see a strong fourth quarter in agricultural equipment as
the current level of orders exceeds the solid level of the previous year
and because experience shows that the service business rises further after
harvest activities.
Energy Segment: results double at BayWa r.e. thanks to international growth
BayWa AG's Energy Segment reported revenues of EUR2.50 billion as at 30
September 2014 (2013: EUR2.54 billion). EBIT amounted to EUR24.5 million
(2013: EUR17.7 million). The slight decline in revenues was mainly due to
the falling price of oil. The marked increase in EBIT is the result of the
international activities of BayWa r.e. and their growth, especially in the
project business with wind and solar plants.
BayWa's conventional energy business with heating oil, fuels and lubricants
showed positive development in recent months and has caught up
significantly since the first half of 2014. At around 1.1 million tonnes,
sales of diesel and Otto fuels matched the positive level seen in the
previous year. In lubricants, the segment bucked the overall market trend
to realise a 9% increase in volume. Demand also picked up in trading with
the heat energy carriers heating oil and wood pellets, reducing the
year-on-year decline in sales. In total, the business unit reported
revenues of EUR2.0 billion as at 30 September 2014 (2013: EUR2.2 billion)
and EBIT of EUR4.0 million (2013: EUR7.5 million). At the start of the
heating period and in light of consistently low oil prices, BayWa expects
to see results in the conventional energy business continue to improve in
the remaining months of the year.
The Renewable Energies business sector continued to post highly positive
development in the first part of the second half of 2014, with both
revenues and EBIT rising significantly. Revenues amounted to EUR463.9
million as at 30 September 2014 (2013: EUR289.2 million). EBIT more than
doubled to EUR20.5 million (2013: EUR10.2 million). In particular, the sale
of several completed wind and solar projects had a positive effect on the
result. A solar park in the UK with 18.5 megawatts (MW) in output and a
wind plant in the USA with a total output of 19.8 MW were among those sold.
Additional project sales are likely at BayWa r.e. by the end of the year.
Plans are in place to sell a large solar park in France as well as several
wind parks in Europe and the USA, which should result in a year-on-year
increase in the result in this business sector.
Building Materials Segment: trade in building materials benefits from good
business in core regions
The BayWa Group's Building Materials Segment mainly comprises its building
materials trade in Germany and Austria. In contrast to the same period in
the previous year, the revenues and earnings contributions of the
loss-making building materials sites in North Rhine-Westphalia and
Rhineland-Palatinate, which were handed over to their new owners in the
second quarter, are no longer contained in the Building Materials Segment.
Instead, they are recognised under Other Activities. This explains both the
slightly lower revenues of EUR1.2 billion as at 30 September 2014 (2013:
EUR1.3 billion) as well as the significantly higher EBIT of EUR17.1 million
(2013: EUR12.8 million). In addition, the segment continues to see strong
demand in civil engineering as well as in gardening and landscaping. The
warehouse and transport business developed very well in view of the high
number of building permits and the increased construction of single-family
homes in major urban areas. If weather conditions are favourable, the
delivery of building materials for building extensions and refinement is
likely to continue increasing, strengthening business development in this
segment.
Contact:
Marion Danneboom, BayWa AG, Head of PR/Corporate Communication,
tel. +49 (0)89/92 22-36 80, Fax +49 (0)89/92 22-36 98,
e-mail: [email protected]
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06.11.2014 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
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Language: English
Company: BayWa AG
Arabellastraße 4
81925 München
Germany
Phone: 089/ 9222-3691
Fax: 089/ 9222-3698
E-mail: [email protected]
Internet: www.baywa.de
ISIN: DE0005194062, DE0005194005,
WKN: 519406, 519400,
Indices: SDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard), München;
Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,
Stuttgart
End of News DGAP News-Service
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