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