News Details

Corporate | 4 May 2010 07:34

WashTec AG: Significantly improved operating result (EBIT) in the first quarter of 2010

WashTec AG / Key word(s): Quarter Results

04.05.2010 / 07:34

Press Release

Significantly improved operating result (EBIT) in the first quarter of 2010:

– 2.4% revenue growth to EUR 55.9m (prior year: EUR 54.6m) due to increase in equipment sales

– Significant improvement in operating result (EBIT) to EUR -0.3m (prior year: EUR -2.5m)

– Formation of subsidiary in Australia

Augsburg, May 04, 2010 – In the first quarter of 2010, the WashTec Group generated revenues of EUR 55.9m (EUR 1.3m or 2.4% higher than in Q1 2009), as a result of a 5.9% increase in equipment sales. Revenues in the service and operations business remained stable, while wash-chemical revenues declined by 12.5% due to the severe winter in the heart of Europe. This forced many car wash operators to close their doors temporarily in January and February due to snow and very low temperatures.

Operating result (EBIT) rose by EUR 2.2m to EUR -0.3m (prior year: EUR -2.5m) as a result of the continuous cost and efficiency measures. After adjusting for non-recurring effects of EUR -0.5m for start-up costs in Australia (Q1 2009: EUR -0.8m for trade receivable write-off in Southern Europe), the operating result equals EUR 0.2m (prior year: EUR -1.7m).

Significant improvements were also made in the net cash flow with EUR 3.4m compared to EUR -1.3m last year.

Forecast

The results of the first quarter of 2010 confirm the Company’s expectations for the full year 2010: Investments into new equipment by customers will not substantially increase this year. Despite little top-line growth, due to cost and efficiency measures, profitability will increase.

The current difficult market environment for equipment sales offers WashTec opportunities to strengthen its position in the market through acquisitions or investments on favourable terms and conditions. WashTec will actively exploit such opportunities, as done by starting-up its own operations in Australia in early April 2010. It is expected that additional opportunities for acquisitions will emerge. This will extend WashTec’s position as market leader and lay the foundation for future growth. For 2010, WashTec will also continue to invest in product innovations in Europe and the United States, as well as in efficiency measures in connection with its international production sites and the service business.

In the mid-term, WashTec expects a recovery of the markets and therefore plans to return to its targeted growth rates of 4-7% per annum combined with a disproportionate increase in earnings.

The mid- and long-term outlook remains favorable. The further expansion of offerings along the carwash value chain, the increase in market share above all in North America and growth in countries with a growing car population will lead to an increase in revenues. Together with the general economic recovery, WashTec aims to reach an EBIT margin of over 12% in the long-term.

Overview of key performance indicators:

The full interim report may be downloaded at www.washtec.de.

Contact:

WashTec AG

Argonstrasse 7

86153 Augsburg

Tel.: +49 (0)821 – 55 84 – 0

Fax: +49 (0)821 – 55 84 – 1135

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