GILDEMEISTER was able to increase profitability in the third quarter in line with plans.
EBITDA reached € 42.0 million (previous year: € 25.5 million), EBIT was positive at € 34.0 million (previous year: € 18.4 million). EBT amounted to € 24.5 million (previous year: € 8.1 million). Earnings after tax amounted to € 16.6 million (previous year: € 5.4 million).
As of 30 September EBITDA had thus reached € 89.6 million (previous year: € 30.2 million), EBIT rose to € 66.5 million (previous year: € 9.1 million). EBT amounted to € 26.6 million (previous year: € –18.3 million). As of 30 September 2011, the group reports earnings after tax of € 18.1 million (previous year: € –13.6 million). In the fourth quarter we are planning further positive growth in our profitability.
Total work done rose by 42% to € 1,258.5 million (previous year: € 886.4 million). Sales revenues rose by 39% to € 1,194.3 million (previous year: € 858.4 million). The cost of materials amounted to € 686.6 million (previous year: € 473.0 million). The materials ratio as of 30 September amounted to 54.6% (previous year: 53,4%). Gross profit rose by € 158.5 million to € 571.9 million (previous year: € 413.4 million). Against the background of a rise in sales revenue performance, personnel costs increased by € 39.0 to € 282.3 million (previous year: € 243.3 million). The rise resulted from the collective pay agreement increase in salary and wages as well as from higher expenses for overtime and variable remuneration. Comparable personnel costs were at a lower level in the previous year due to short-time working. The personnel ratio fell to 22.4% (previous year: 27.4%).
The balance of other income and expenses amounted to € 200.0 million (previous year: € 139.9 million). This increase is mainly due to greater use of temporary workers and other sales revenue-dependent expenses. Depreciation amounted to € 23.1 million (previous year: € 21.1 million). The financial result amounted to € –39.9 million (previous year: € –27.4 million). The rise compared to the previous year’s level resulted from a one-off expense (€ –12.6 million) in the second quarter, which arose from the recognition in the income statement of the dissolution of the interest rate hedges in connection with the redemption of the borrowers‘ notes. As of 30 September 2011, the income taxes amounts to € 8.5 million, which results in earnings after taxes of € 18.1 million (previous year: tax income € 4.7 million). The tax ratio amounts to 32%.
| 30 Sep. 2011 € million | 31 Dec. 2010 € million | 30 Sep. 2010 € million | |
|---|---|---|---|
| Net worth | |||
| Long-term assets | 450.7 | 418.5 | 401.2 |
| Short-term assets | 933.2 | 939.0 | 929.3 |
| Equity | 624.0 | 412.9 | 375.5 |
| Outside capital | 759.9 | 944.6 | 955.0 |
| Balance sheet total | 1,383.9 | 1,357.5 | 1,330.5 |
Total assets as of 30 September 2011 amounted to € 1,383.9 million. Equity rose mainly due to the capital increases (€ 213.7 million) to € 624.0 million. The shares that were purchased within the framework of the share buyback programme reduced equity by € 20.7 million. The equity ratio rose to 45.1% (31 Dec. 2010: 30.4%). The equity ratio should reach about 50% by year-end.
Under assets, long-term assets rose by € 32.2 million to € 450.7 million. Further explanations on this can be found in the "Investments" section.
Short-term assets decreased by € 5.8 million to € 933.2 million. Inventories grew by € 87.1 million to € 497.4 million caused by rising sales. Due to the high order backlog, raw materials and consumables (RHB) rose to € 213.7 million (€ + 30.6 million). The inventory of work in progress increased to € 154.5 million (€ + 54.1 million). The stock of finished goods and merchandise grew slightly by € 6.6 million to € 121.5 million. Trade debtors fell by € 21.5 million to € 284.5 million, in particular as a result of the high payments received from "Energy Solutions" projects. Cash and cash equivalents amounted to € 68.0 million (31 Dec. 2010: € 111.8 million).
Under equity and liabilities equity amounted to € 624.0 million (31 Dec. 2010: € 412.9 million). Outside capital fell by € 184.7 million to € 759.9 million (31 Dec. 2010: € 944.6 million). This resulted primarily from a reduction in financial liabilities through the redemption of the borrowers‘ notes in an amount of € 201.5 million. In August the refinancing of financial liabilities was finalised. The new syndicated credit line totalling € 450 million replaces the syndicated loan of € 211.9 million. The new credit line has a term of five years (until 2016). It comprises a cash tranche of € 200 million and an aval tranche of € 250 million. The new syndicated credit line was concluded at markedly more favourable terms, which is on account of GILDEMEISTER's improved creditworthiness following the capital increases. Payments received on account rose to € 134.1 million (€ + 37.1 million) and provisions increased by € 20.1 million to € 199.4 million. Trade creditors amounted to € 264.9 million.
The group's financial position developed positively: Free cash flow in the third quarter amounted to € 79.7 million. The decline in trade receivables of € 94.1 million, in particular due to payments from "Energy Solutions" projects, had a positive effect on this development in the third quarter.
Free cash flow as of 30 September 2011 was positive at € 15.3 million. Cash flow from operating activities as of 30 September was € 59.3 million (previous year: € 75.1 million). Based on earnings before tax (EBT) of € 26.6 million (previous year: € -18.3 million) the rise in prepayments for orders (€ 37.1 million), the decline in trade receivables and depreciation (€ 23.1 million) contributed positively to cash flow. An opposing effect resulted from a rise in inventories (€ - 85.8 million). Cash flow from investment activity amounted to € - 58.8 million (previous year: € - 28.8 million). Cash flow from financing activity was € - 42.6 million (previous year: € 2.1 million). This results as to € 220.0 million from the payments from the capital increases as well as from the repayment of financial liabilities (€ -235.6 million). This arose primarily from the premature redemption of the borrowers‘ notes of € 201.5 million in April 2011.
Over the course of the year we are planning further improvement in the financial position. For the fourth quarter we are anticipating positive free cash flow on the basis of current planning. For the whole year 2011 we are planning positive free cash flow of more than € 40 million.
| 2011 3rd quarter € million | 2010 3rd quarter € million | 2011 1st - 3rd quarter € million | 2010 1st - 3rd quarter € million | |
|---|---|---|---|---|
| Cash flow | ||||
| Cash flow from operating activities | 106.6 | 79.3 | 59.3 | 75.1 |
| Cash flow from investment activity | -41.7 | -9.3 | -58.8 | -28.8 |
| Cash flow from financing activity | -80.2 | -30.6 | -42.6 | 2.1 |
| Changes in cash and cash equivalents | -17.3 | 40.9 | -43.8 | 49.3 |
| Liquid funds at the start of the reporting period | 85.3 | 92.8 | 111.8 | 84.4 |
| Liquid funds at the end of the reporting period | 68.0 | 133.7 | 68.0 | 133.7 |