Repower : 12-17-14 - Repower’s 2014 results below expectations

12-17-2014 Repower's 2014 results below expectations

Repower is adjusting the estimates of 2014 operating earnings before interest and taxes (EBIT) announced earlier this year when it published its semiannual results. Full-year EBIT looks set to come in at around half the prior-year figure (before exceptional items). This is below previous expectations, which put the decline in EBIT at between 30 and 40 per cent.

Repower also anticipates a net loss for 2014. On the one hand Repower's financial results have been hit by extremely unfavourable currency translation, with the EUR/CHF exchange rate close to the intervention threshold defined by the Swiss National Bank. Added to this, declining interest rates have negatively impacted valuations of existing interest rate swaps. Owing to the persistently low price of electricity, Repower will also have to make provisions running into the high single-digit millions for long-term agreements.

Repower believes the market situation will remain extremely challenging in the medium term. Against this backdrop, back in 2013 the company launched a comprehensive efficiency programme. This brought savings in the region of around CHF 17 million in 2014, and will yield positive effects of more than CHF 20 million in 2015.

Beyond this, Repower is progressively expanding its existing portfolio of operations by stepping up its new tech business and efforts to acquire outside contracts.

Cash flow continues to develop well. Various measures taken in working capital management are bearing fruit, and the disposal of non-operational assets is going to plan.

Added to this, Repower still has very solid finances and a healthy balance sheet.

Despite the current problems facing the energy industry, this all means that Repower is well positioned to make an active contribution in newly emerging markets, especially when it comes to integrating systems and improving energy efficiency.

Contact:

Kurt Bobst
CEO
CH-7742 Poschiavo
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[e-mail]

Stefan Kessler
CFO
CH-7742 Poschiavo
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[e-mail]

Werner Steinmann
Head of Media Relations
CH-7742 Poschiavo
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www.repower.com