- Order intake € 89.5 million after € 61.8 million (+45%)
- Order backog € 168.5 million after 186.7 million (-10%)
- Sales € 59.6 million after € 75.6 million (-21%)
- EBIT € 1.1 million after € 4.2 million (-74%)
- Profit for the period continuing activities € 0.1 million after € 2.6 million (-96%)
- Result for the period from discontinued activities € -0.9 million after € -0.3 million
- Result for the period € -0.8 million after € 2.3 million
- Equity € 35.5 million, net debt € 63.5 million
Order and result figures refer to the continued activities (excluding Food & Beverage) unless stated otherwise
“The first quarter 2009 was characterized by a tense economic environment resulting from the global financial and economic crisis. As an internationally leading engineering and technology provider, this had a negative impact on the CHRIST Group and led to project decisions being postponed and/or projects being put on hold. Initial positive results from the saving and reorganization measures carried out to improve the cost structure and profitability can be seen,” says Malek Salamor, CEO of the Christ Water Technology Group.
In the first three months of 2009, the CHRIST Group order intake rose by 45% to € 89.6 million (Q1 2008: € 61.8 million), largely as a result of the major contract valued at around € 60 million with the Aqua Engineering group company in South Africa. Orders on hand fell 10% from € 186.7 million in the previous year to € 168.5 million. However, this is an increase compared with year-end 2008 (31 December 2008: € 138.6 million). Other projects due to be commissioned support this trend.
In the first quarter of the year, CHRIST Group consolidated sales dropped by 21% from € 75.6 million to € 59.6 million. Delays in decisions and/or projects being put on hold was reported from almost all industry-oriented divisions.
Group EBIT also managed to recover following the collapse in earnings in the second six months of 2008 amounting to € 1.1 million (first quarter 2008: € 4.2 million). EBIT including the Food & Beverage division was € 0.6 million.
Following repayment in April 2008, output-oriented interest income from receivables was not included in the financial result of € -663 thousand (first quarter 2008: € -24 thousand). Earnings before taxes amounted to € 427 thousand (first quarter 2008: € 4.1 million).
Net result of € 102 thousand for the quarter under review from the continuing divisions was marginally positive (first quarter 2008: € 2.6 million). Including the results of the Food & Beverage division due to be sold (€ -874 thousand (first quarter 2008: € -336 thousand)) results in net loss for the period of € -772 thousand (first quarter 2008: € 2,302 thousand). Result per share from continuing and discontinued divisions amounts to € -0.04 (first quarter 2008: € 0.12) and earnings per share from continuing divisions amounts to € 0.01 (first quarter 2008: € 0.13).
Operating cash flow in the first quarter of 2009 totaled € -9.4 million (first quarter of 2008: € -10.5 million) and reflects a certain recoup effect following the unanticipated positive operating cash flow of the fourth quarter of 2008. The cash requirement was funded by way of reducing cash and cash equivalents (€ -5.4 million) and increasing interest-bearing financial liabilities (€ -4.2 million). Net debt amounted to € 63.5 million as at March 31, 2009, confirming the stabilizing effect of cash management measures despite the rise compared to December 31, 2008 (€ 54.7 million).
Group equity (including minority interests) dipped by 4% from € 37 million to € 35.5 million compared to December 31, 2008 due to the negative Group result and currency effects. The equity ratio climbed from 15.9% to 16.5% owing to the reduction in the balance sheet total and gearing, the ratio of net debt to equity, rose from 148% to 179%.
Outlook
Given the enduring uncertainty in the global economic environment, it is very difficult to make reliable forecasts regarding the effects on the future development of the CHRIST Group. The segments within the CHRIST Group are affected to varying degrees. The satisfactory overall status of orders on hand and the future business opportunities arising provide a firm basis for successfully concluding the measures initiated for restructuring the CHRIST Group’s operating and accounting activities. Maintaining risk and cost-aware corporate management and preserving liquidity are vital factors for future success in this climate. The Management Board expects to close the transaction of the Food & Beverage segment by the end of the year.