- Order intake: € 123.8 million (-7.2%)
- Order book: € 197.6 million (+7.7%)
- Net Sales: € 154.8 million (+16.8%)
- EBITDA: € 6.4 million (+13.9%)
- EBIT: € 3.5 million (-13.6%)
- Full year outlook: Sales € >330 million, EBIT: € 7.0–9.0 million
“We are looking back at a difficult second quarter which saw our efforts to improve profitability being undone by further cost increases at current long-term projects, integration measures at recently acquired group companies as well as delays of key project awards,” comments Karl Michael Millauer, CEO of Christ Water Technology Group the results of the second quarter 2008.
In the first six months of 2008, the CHRIST Group’s order intake decreased by 7.2% to € 123.8 million (previous year: € 133.4 million), or by 31% to € 54.8 million in the second quarter. This is chiefly attributable to the minimum margin policy involving the planned reduction of activities in the power plant business of the Ultrapure Water Division as well as delays in municipal contract awards. Orders on hand amount to € 197.6 million (previous year: €183.5 million) representing an increase of 7.7% over the last year.
Consolidated sales for the first six months of the year climbed by 16.8% to € 154.8 million (previous year: € 132.5 million). However, at 2%, growth in Q2 to € 70.8 million did not meet expectations. Following a pleasing Q1, for the first six months, EBIT fell to € 3.5 million (previous year: € 4.1 million) due to the lower revenues, the sustained effects of cost increases in terms of long-term contracts as well as continued restructuring costs for recently acquired companies. Q2 EBIT amounted to € -0.7 million (previous year: € 1.7 million).
Earnings before taxes (EBT) fell to € 2.8 million (previous year: € 4.0 million) in the first half and was € -1.1 million in the second quarter. Payment of taxes for prior years led to a cumulative tax rate of around 46% (previous year: around 40%). The net profit for the period decreased to € 1.5 million (last year: € 2.8 million) following a Q2 result of € 0.8 million (last year: € 1.5 million).
Group equity (including minority interest) increased compared to December 31, 2007 by 3.5% from € 63.8 million to € 66.1 million. The equity ratio rose accordingly from 27.7% to 29.1%. Cash flow from operating activities of € -11.4 million indicate growth-oriented operating activities that are still underfunded on the project side, as was the case in the previous year (€ -12.8 million).
Outlook
Based on the current economic situation and the existing orders on hand as well as the numerous positive opportunities for contracts due to the upcoming project awards in the second half of the year the Management Board expects growth in consolidated net sales for the 2008 fiscal year to € 330 million. Because of negative earnings in Q2, we now expect a double-digit increase of EBIT for 2008 to between € 7 million and € 9 million.
Contacts:
CHRIST WATER TECHNOLOGY AG, A-5310 Mondsee, Walter-Simmer-Str. 4
Karl Michael Millauer, CEO, Tel. +41 (0)61 755 8537
Ralf Burchert, Investor Relations & Corporate Communication
Tel. +43 (0)6232 5011 1113, Fax +43 (0)6232 5011 1109,
E-mail: ralf.burchert@christ-water.com
CHRIST – World Class Water Technologies