Press release
Regulated Information
31 October 2019 - 6:00pm CET
Trading update Q3 2019
Increase in margins partially offsets lower order intake
Highlights:
- Order intake of EUR 226 million compared to EUR 281 million the previous year, due to the uncertainty related to the Group's refinancing in the first half of the year, which was concluded last August
- Improved margins
Markets and regions:
At the end of September, order intake amounted to EUR 226 million compared to EUR 281 million for the same period in 2018. Apart from an order of EUR 11.7 million for the construction of a mine shaft headframe in Canada, the size of the other orders is in line with the trend at the beginning of the year, i.e. medium-sized projects with better margins.
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Hamon & Cie
www.hamon.com
Rue Emile Francqui 2, B-1435Mont-St-Guibert, Belgium
Review by region (per contracting entity):
Bookings (in thousand EUR) | 2019 YTD | 2018 YTD |
Americas | 79,902 | 86,239 |
Asia | 64,102 | 47,605 |
EMEA | 82,594 | 147,794 |
TOTAL | 226,597 | 281,638 |
Order intake for the last quarter is fairly well distributed between the various regions, with, among other things, a renovation of a natural draft cooling tower in Australia, a turnkey cooling tower for a refinery in India, a flue gas treatment installation for a hazardous waste incineration plant in China, two other cooling system renovation projects in Europe and some heat recovery exchangers for Deltak in the United States.
The lower level of order intake is mainly due to a lower number of opportunities in the power generation sector, which now represents only 33% of the Group's order intake, and to the ambition to focus on lower volume business with reasonable profitability. The Group obviously remains interested in projects of significant size provided that it is not responsible for financing the execution of these contracts.
The frequency of orders for major projects is obviously not regular throughout the year, nor even from one year to the next. In 2018, the EMEA region recorded two major projects in the second quarter for a total of EUR 67 million, which explains the region's apparent poorer performance in the first nine months of the current year.
With regard to product lines, the cooling tower activity recorded a significant number of orders, confirming Hamon's leadership in this market. However, the dry cooling activity is currently very weak. For the Air Quality Systems, many projects are in the pipeline. This is the result of the increased awareness in many countries of the need to achieve solid climate objectives. This trend is practically general and Hamon's development efforts on the Asian market should be rewarded in the short and medium term.
The expected margin level on orders received during the first three quarters of 2019 is higher than that observed during the same period in 2018, which partially offsets the effects of the decline in order volume.
Glossary
- New order bookings: new projects for which a contract or a letter of award has been signed between Hamon and the customer, during a given period.
- Backlog: at a given date, the residual value of all new orders booked by Hamon, i.e. the difference between the value of these contracts and the revenue recognized so far on these contracts.
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Hamon & Cie
www.hamon.com
Rue Emile Francqui 2, B-1435Mont-St-Guibert, Belgium
For all additional information: | ||
Hamon Investors Relations | investorsrelations@hamon.com | |
Bernard Goblet, CEO | corporate@hamon.com | +32.10.39.04.05 |
Christian Leclercq, CFO | christian.leclercq@hamon.com | +32.10.39.04.22 |
Financial calendar: | |
Press Release Annual Results 2019 | 5 March 2020 |
Annual General Shareholders Meeting 2020 | 28 April 2020 |
Hamon profile:
The Hamon Group (www.hamon.com) is a world player in engineering & contracting (design, installation and project management). Its activities include the design, the manufacturing of critical components, the installation and the after-sale services of cooling systems, air pollution control (APC) systems, heat recovery steam generators and chimneys, used in power generation, oil & gas and other heavy industries like metallurgy, glass, chemicals. Hamon is listed on Euronext Brussels (symbol: HAMO).
Forward looking statements
This presentation contains forward-looking information that involves risks and uncertainties, including statements about Hamon's plans, objectives, expectations and intentions. Readers are cautioned that forward-looking statements include known and unknown risks and are subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the control of Hamon. Should one or more of these risks, uncertainties or contingencies materialize, or should any underlying assumptions prove incorrect, actual results could vary materially from those anticipated, expected, estimated or projected. As a result, neither Hamon nor any other person assumes any responsibility for the accuracy of these forward-looking statements.
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Hamon & Cie
www.hamon.com
Rue Emile Francqui 2, B-1435Mont-St-Guibert, Belgium
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Hamon & Cie International SA published this content on 31 October 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 October 2019 17:36:01 UTC