KENDRION N.V. 
By Kendrion: 17% growth in revenue in first quarter 2012
- Revenue in first quarter totalling EUR 77.3 million (+17% compared to Q1 2011,
6% of which is organic)- Organic growth mainly from Passenger Car Systems and Industrial Drive
Systems
- EBITA rises to EUR 8.6 million in first quarter (+12%
compared to Q1 2011)
- Kendrion maintains forecast for further growth in
revenue and profit in 2012
(x EUR 1 million unless otherw ise stated) | Q1 2012 1 | Q1 2011 1 | Difference in % |
Revenue EBITA from ordinary activities Net profit | 77.3 8.6 5.3 | 65.8 7.7 5.1 | 17% 12% 4% |
1 The quarterly f igures are unaudited
Piet Veenema, CEO of Kendrion:
"The growth of recent years has also continued in the
first quarter and this has once again resulted in growth in
revenue and operating result. Organic growth in the first
quarter came mainly from the Passenger Car Systems and
Industrial Drive Systems business units that benefited from
the positive developments in German industry. Kendrion FAS
Controls, which is Kendrion's most recent acquisition,
performed in line with the expectation and contributed to
earnings per share. Even though the pace of growth is
levelling off and uncertainty regarding the economic
development in 2012 has once again increased, we maintain the
forecast that Kendrion will achieve further growth in revenue
and profit in 2012. The related focus will remain on a
further expansion of the sales activities worldwide, combined
with extensive attention to innovative and customer-centred
products."
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Financial reviewRevenue
Revenue rose to EUR 77.3 million in the first quarter of
2012, equalling a 17% increase compared to the same period
last year. Organic growth in revenue amounted to 6% in the
first quarter of
2012. In comparison to the fourth quarter of 2011, organic
growth in revenue totalled 7%.
The increase in revenue was realised by three business units,
with the Passenger Car Systems business unit once again being
the main driver of revenue growth. Only the Industrial
Magnetic Systems business unit posted lower revenue and this
decrease was due to a slight delay in the launch of a number
of new projects in Germany and the USA. Kendrion FAS Controls
(a company of the Passenger Car Systems business unit) got
off to a good start within Kendrion and the preparations for
the already announced new projects for the American market
are progressing according to plan.
Results
Commodity prices for copper and metal were stable in the
first quarter. The commodity prices for permanent magnets,
which had risen sharply in 2011, returned to a lower
level.
The operating result from ordinary activities before
amortisation (EBITA) amounted to 11.2% as a percentage of
revenue (full year 2011: 11.5%) with a good cost level. The
target is to achieve an operating margin of at least 10%. The
slight decrease is attributable to the hiring of new
employees (primarily engineers and project managers). These
new employees have been taken on for reasons including the
expansion of the engineering capacity of the Commercial
Vehicle Systems business unit connected with the planned
growth in the global truck market.
Interest charges rose as expected in the first quarter,
partially due to a higher debt position connected in part
with the acquisition of FAS Controls in December 2011 and
partially to the interest charges on the provision made in
2011 in connection with the EC fine. Net profit amounted to
EUR 5.3 million in the first quarter (Q1 2011: EUR 5.1
million).
The number of employees remained virtually unchanged in the
first quarter compared to year-end
2011 at approximately 1,800. This number includes around 200
temporary employees needed to ensure the required
flexibility.
Financial position
The balance sheet total rose by EUR 8.5 million in the first
quarter of 2012, primarily as a result of the increased
revenue.
Investments totalled EUR 4.2 million in the first quarter
with a depreciation level of EUR 2.6 million. Investments in
2012 will be considerably above the depreciation level
primarily due to the expansion investments in the Passenger
Car Systems business unit and the investments in the ERP
system. The "HORIZON" ERP project is progressing
completely according to schedule.
Kendrion has a strong financial position with solvency of
approximately 40% at the end of
March 2012.
Given the current uncertainties regarding the economy, it remains difficult to provide a detailed prediction of the development of revenue and profit for the full year 2012. Economic growth appears to be decreasing in a number of Kendrion's key sales markets, such as the French automotive market and the textile machinery market. Other sectors such as the German automotive industry and the largest part of the German machine building industry are, however, still performing extremely well. Based on the current insights, Kendrion expects further growth in revenue and profit, but is refraining from issuing a concrete profit performance forecast considering the current situation.
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Profile of Kendrion N.V.
Kendrion N.V., a solution provider, develops, manufactures
and markets innovative high-quality electromagnetic systems
and components for customers all over the world.
Kendrion's operations are carried out by four business
units focused on specific market segments, namely Industrial
Magnetic Systems, Industrial Drive Systems, Passenger Car
Systems and Commercial Vehicle Systems.
Kendrion has leading positions in a number of
business-to-business niche markets. Germany is
Kendrion's main market, although other countries are
becoming increasingly important.
Kendrion's activities
Kendrion develops advanced electromagnetic solutions for
industrial applications. These are used by customers all over
the world in systems such as lifts, door-locking systems,
industrial robots,
medical equipment, electrical switchbox systems, diesel and
gasoline engines, air-conditioning
installations, motor cooling systems and beverage dispensers.
Kendrion's key customers include a.o. Bosch,
Continental, Daimler, Delphi, Eaton, Evobus, Hyundai, Siemens
and Yutong.
Kendrion's shares are listed on NYSE Euronext's
Amsterdam market. Zeist, 9 May 2012
The Executive Board
Piet Veenema - Chief Executive Officer
Eiko Ris - Chief Financial Officer
Kendrion N.V. Mr P. Veenema Utrechtseweg 33
3704 HA ZEIST
THE NETHERLANDS
Tel: +31 - 30 - 699.72.68
Fax: +31 - 30 - 695.11.65
Website: www.kendrion.com
1. Consolidated statement of comprehensive income
2. Consolidated statement of financial position
3. Financial calendar 2012 - 2013
Page 3 of 6
Annex 1 - Consolidated statement of comprehensive income(EUR million) | |||
Q1 2012 | Q1 2011 | 2011 | |
Revenue | 77.3 | 65.8 | 267.9 |
Other operating income | 0.1 | 0.1 | 1.0 |
Total revenue and other operating income | 77.4 | 65.9 | 268.9 |
Changes in inventories of finished goods and work in progress | (2.9) | (1.8) | (4.2) |
Raw materials and subcontracted work | 42.0 | 34.5 | 139.1 |
Staff costs | 20.6 | 17.7 | 72.8 |
Depreciation and amortisation | 3.2 | 2.6 | 10.8 |
Other operating expenses | 6.4 | 5.6 | 61.9 |
Result before net finance costs | 8.1 | 7.3 | (11.5) |
Finance income | 0.0 | 0.0 | 0.1 |
Finance expense | (1.1) | (0.5) | (2.1) |
Net finance costs | (1.1) | (0.5) | (2.0) |
Profit before income tax | 7.0 | 6.8 | (13.5) |
Income tax expense | (1.7) | (1.7) | (6.6) |
Profit for the period | 5.3 | 5.1 | (20.1) |
Attributable to: Equity holders of the company | 5.2 | 5.0 | (20.2) |
Minority interest | 0.1 | 0.1 | 0.1 |
Profit for the period | 5.3 | 5.1 | (20.1) |
Basic earnings per share (EUR) | 0.46 | 0.45 | (1.79) |
Diluted earnings per share (EUR) | 0.46 | 0.45 | (1.79) |
- Quarterly figures are unaudited -
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Annex 2 - Consolidated statement of financial position at 31 March- Quarterly figures are unaudited
Page 5 of 6
Annex 3 - Financial calendar 2012 - 2013 2012 Cash dividend made payable and delivery stock dividend | Thursday, 10 May 2012 | |
Publication of HY1 2012 results | Thursday, 23 August 2012 | 08.00 a.m. |
Analysts' meeting Publication of Q3 2012 results | Thursday, 23 August 2012 Wednesday, 7 November 2012 | 11.30 a.m. 08.00 a.m. |
2013 | ||
Publication of 2012 full-year figures Analysts' meeting | Wednesday, 27 February 2013 Wednesday, 27 February 2013 | 08.00 a.m. 11.30 a.m. |
General Meeting of Shareholders | Monday, 15 April 2013 | 02.30 p.m. |
Publication of Q1 2013 results | Wednesday, 8 May 2013 | 08.00 a.m. |
Publication of HY1 2013 results | Wednesday, 21 August 2013 | 08.00 a.m. |
Analysts' meeting Publication of Q3 2013 results | Wednesday, 21 August 2013 Wednesday, 6 November 2013 | 11.30 a.m. 08.00 a.m. |
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