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KHD Humboldt Wedag International AG: KHD posts virtually unchanged EBIT margin despite fall in revenue

DGAP-News: KHD Humboldt Wedag International AG / Key word(s): Final
Results
KHD Humboldt Wedag International AG: KHD posts virtually unchanged
EBIT margin despite fall in revenue

30.03.2012 / 10:09

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KHD Humboldt Wedag International AG posts
virtually unchanged EBIT margin despite fall in revenue

  - Global economic crisis is felt

  - Revenue down but EBIT margin remains satisfactory at 7.5%

  - Constructive cooperation with AVIC leads to first projects

  - Order intake expected to increase in 2012, but revenue and EBIT likely
    to fall

Cologne, Germany - March 30, 2012: KHD Humboldt Wedag International AG
(KHD), one of the world´s leading suppliers of equipment and services for
the cement industry, published its 2011 Group Annual Report today. Group
revenue fell from EUR 286.9 million to EUR 234.6 million, largely as a
result of delayed projects. Nevertheless, KHD succeeded in maintaining a
virtually unchanged EBIT margin of 7.5% (previous year: 8.7%). The
Management Board expects that operating conditions will remain difficult in
the markets relevant for KHD in 2012. Nevertheless, it forecasts a rise in
order intake. However, the Company does not expect to match its 2011 EBIT
margin and revenue in the current financial year.

Demand dropped on the worldwide cement market in 2011. The global economic
turmoil was felt, even in high-growth countries such as China, India, and
Russia. This resulted in lower economic growth which had consequences for
construction. Many customers also struggled with financing for their
projects. For KHD this meant that a number of contracts were delayed in the
2011 financial year. Order intake was also lower, at EUR 224.7 million in
2011 compared with EUR 268.9 million a year earlier.

Revenue was down by 18.2% in 2011 at EUR 234.6 million. The operating
result (EBIT) also fell, from EUR 25.0 million to EUR 17.6 million. With
the aid of consistent cost management, KHD secured an EBIT margin of 7.5%
(previous year: 8.7%). The completion of a large high-margin order and
valuation effects also had a positive effect on the figure. The valuation
effects arose in connection with the acquisition of the remaining shares in
the Russian subsidiary KHD Humboldt Engineering OOO, Moscow, Russia. Group
net profit fell from EUR 15.8 million to EUR 13.5 million.

Company management was pleased with the progress of the cooperation with
Chinese partner and shareholder AVIC. AVIC holds a 20% stake in KHD
following the capital increase carried out in the first quarter of 2011.
The attractive combination of KHD´s premium technology and competitive cost
structure has improved the company´s position in the EPC sector which has