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Muehlhan AG: Muehlhan reports an increase in sales and earnings at the end of the first half of 2014

Muehlhan AG / Key word(s): Half Year Results/Development of Sales

30.07.2014 08:53

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Group AG.
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PRESS RELEASE

Muehlhan reports an increase in sales and earnings at the end of the first
half of 2014

- Sales increase 11% in first half of 2014

- First-half EBIT of EUR 3.0 million

- Executive Board maintains existing earnings forecast

Hamburg, 30 July 2014 - Muehlhan AG (Entry Standard; ISIN DE000A0KD0F7)
ended the first half of the year with net income attributable to the equity
holders of EUR 1.0 million (previous year: also EUR 1.0 million). After a
subdued first quarter, there was a significant upward trend in the second
quarter. During the first three months of the fiscal year, the Group had
reported a loss of approximately - EUR 0.2 million. Overall, the company
generated sales revenues of EUR 106.7 million during the period from
January to the end of June 2014. EBIT increased from EUR 2.3 million the
previous year to EUR 3.0 million.

As in previous years, the bulk of the sales revenues came from the European
business, where Group sales totaled EUR 88.3 million, almost 15% higher
than in the first half of 2013 (EUR 77.1 million). The main contributor to
the improvement was the business in the North Sea oil & gas sector, which
last year was severely affected by a flight ban on transport helicopters.
Because a major project was winding down, the Muehlhan Group's North
American businesses saw revenues decline from a solid EUR 9.8 million in
the prior-year period to EUR 7.4 million. In the Asian region, including
the Middle East, Muehlhan managed to increase revenues from EUR 9.3 million
to EUR 10.9 million. With EBIT of EUR 0.5 million (first half of 2013: -
EUR 0.7 million), the earnings situation improved considerably. The
improvement was due both to the shutdown of loss-making businesses in Qatar
and China and the cyclical upturn in the fire-protection business in the
Middle East.

The Ship Newbuilding segment experienced a (presumably temporary) recovery,
reporting sales of EUR 19.1 million (first half of 2013: EUR 14.2 million).
In the Ship Repair segment, sales of EUR 15.2 million did not quite reach
the prior-year level of EUR 17.6 million. In the Energy segment, Muehlhan's
work for customers in the wind energy, oil & gas offshore and petrochemical
segments generated EUR 25.6 million of sales revenues (previous year: EUR
22.1 million). The Industry business segment encompasses bridge-coating,