EBITA and turnover rises in first half of 2003
- EBITA rises to 31.5 million euro (+4.3%)
- Turnover: 732 million euro (+5.5%)
- Order portfolio remains well filled: 2.4 billion euro (-7,1%)
- Marine and industry positive, infrastructure stable, office buildings market under pressure, still no recovery for ICT and telecoms
- Positive development in Germany, Belgium and Spain
René van der Bruggen, Chairman Board of Management of technical service provider Imtech N.V.: 'Certainly in the light of the continuing unfavourable economic climate, the European technical service provider Imtech can look back on a reasonable six months. As expected, both turnover and operating result before the amortisation of goodwill (EBITA) developed positively. The activities in the marine and industrial markets performed positively, as in Germany, Belgium and Spain. The infrastructure market is stable. By contrast, in the ICT (IT services), telecoms and office buildings markets volumes are decreasing, competition is fierce and, as a result, prices are under pressure. In these markets the organisation will be adapted to market conditions. The related reorganisation costs will be accounted for under the operating result commencing in 2003. Corrected for these reorganisation costs Imtech adheres to its forecast of March 2003 of an increase in turnover and EBITA for 2003 as a whole.'
Financial progress
In the first half of 2003, EBITA rose by 1.3 million euro to 31.5 million euro, an increase of 4.3%. Net turnover rose by nearly 38 million euro to 732 million euro, an increase of 5.5%. Production rose by 31 million euro to 953 million euro, an increase of 3.3%. The order portfolio amounted to 2.4 billion euro and, despite a decrease of 7.1%, remained at a relatively high level for Imtech (first half of 2002: 2.5 billion euro).Net result rose from 18.9 million euro to 19.3 million euro, an increase of 2.1%. There were no extraordinary income and charges. The effective tax rate dropped from 31.1% to 30.6%.
Earnings per share before goodwill rose from 0.76 euro to 0.78 euro (an increase of 2.6%), based on the average number of issued shares during the first half of the year.
Here follows a more detailed explanation of progress in the three separate clusters: The Benelux, Germany (including Spain) and ICT & Technology.
The Benelux
Imtech developed reasonably in the Benelux. Turnover rose by 7.6% to 256 million euro (first half of 2002: 238 million euro). Production rose by 8.2% to 344 million euro (first half of 2002: 318 million euro). EBITA amounted to 13.7 million euro compared with 14.4 million euro in the first half of 2002, a decrease of 4.9%.The situation in the Dutch office buildings market was poor. In the Randstad (the central area) in particular market volume fell and pressure on prices increased. Imtech anticipated this development by increasing its activities in care and education, as well in the distribution, logistics and security sectors. The office buildings market was also under pressure in Belgium and Luxembourg, but here it was counterbalanced by the effect of the expansion of the European Community with ten new member states. For instance, Imtech is involved with two large office complexes in Brussels - Euroblok II and Centre International Rogier.
In the more stable industrial market Imtech performed well. In Belgium larger orders included those from the automobile industry (Opel, VW and Volvo) and the pharmaceutical sector (Janssen Pharmaceutica). In the Netherlands Imtech has the possession of long-term industrial maintenance contracts. The technical maintenance and management market is growing steadily. Currently the infrastructure market is somewhat hesitant but this is being counterbalanced to a great degree by increasing activity in the rail (railway, metro and tram) and energy markets.
Germany (including Spain)
Imtech is developing positively in Germany - despite the unfavourable market situation. Imtech is the largest, multi-disciplinary technical service provider in Germany and market leader in the buildings and industry segments. Turnover fell slightly (-/- 3.5%) to 305 million euro (first half of 2002: 316 million euro). Production also fell by 3.7% from 433 million euro to 417 million euro. Partly due to integration and efficiency advantages EBITA rose to 15.3 million euro compared with 12.6 million euro in the first half of 2002, an increase of 21.4%.Despite a continuing hesitation when it comes to investing in new office buildings, in the heart of the German economy (the Dusseldorf - Frankfurt - Stuttgart - Munich backbone) large(r) multi-disciplinary projects were once again acquired. For example, the total technology in a large office building in Frankfurt for the Allianz insurance company. A lower level of activity in this new buildings market has been partially counterbalanced by orders for the technical renovation and upgrading of offices, such as the monumental City Hall (Hans-Sachs-Haus) in Gelsenkirchen. In addition, the number of special projects, such as the large-scale technical improvement of the Olympic Stadium in Berlin and the extension of Hamburg's airport, has risen. The industrial market is reasonably stable. Acquired orders involve an aircraft factory to be built for Airbus in Hamburg, a new automobile factory for BMW in Leipzig and an R&D Center for Andreas Stihl in Waiblingen.
In Spain Imtech performed well with both turnover and result showing a healthy growth.
ICT & Technology
The results of the different activities in this cluster (ICT, Technology, Marine and Telecoms) showed a mixed picture. Investments in ICT remained under pressure. By contrast, activities in the field of Technology and in the marine market developed well. The Telecoms activities have still not shown any signs of recovery.
On balance, turnover and production rose but EBITA was lower than last year. Turnover rose by 22.1% to 171 million euro (first half of 2002: 140 million euro). Production increased by 12.3% from 171 million euro to 192 million euro. At 7.3 million euro EBITA was 11% lower than for the first half of 2002 (8.2 million euro).The ICT market continued to worsen, especially the market for IT services. By contrast, and partly thanks to co-operation with world-market leaders such as Cisco and Avaya, Imtech performed well in the data and business telecommunications market.
In the Technology market it was the activities in the area of fire security, parking, access and process technology that performed well. Technical maintenance and management is also a growth market here.
Imtech's marine activities have continued their healthy development. In particular, the market for integrated platform automation, instrumentation and electrical engineering in both naval vessels and luxury yachts has grown. Hellenic Shipyards has awarded Imtech the order for the modernisation of the platform automation of six Greek Navy's frigates.
The co-operation agreements with Lucent Technologies and Juniper are resulting in increased activities in the Belgian, German, English and Scandinavian Telecoms markets. The customer base in these markets is growing steadily. In Germany E-Plus ordered the building of hundreds of new sites to expand its mobile network. In the Netherlands, however, Imtech Telecom's performance was disappointing. Operators are making only modest investments in the expansion, up-grading or major maintenance of their networks. In addition, price levels are unfavourable, which means margins are under pressure.
Capital and financing
The group funds : total liabilities ratio on 30 June 2003 was 36% (end of 2002: 33%).Cash flow from business activities amounted to 53.7 million euro negative (end of June 2003: 81.3 million euro negative). The higher working capital was caused bij the seasonal effect and by the company's growth. This was financed primarily from available liquid assets.
To cover the balance of the management and staff share options granted and exercised/expired up to the end of June 2003, during the first half of the year the Company purchased 4,000 shares for a total price of 62,000 euro.
On balance the Company's net cash position at the end of the period under review was 45 million euro (end of June 2002: 9 million euro, end of December 2002: 132 million euro).
Principles of valuation
The accounting principles for the financial reporting are the same as used for the 2002 Annual Report. It should be noted that the Percentage of Completion Method of calculating the incorporation of profit-taking on work in progress was implemented in the second half of 2002. The comparative figures for June 2002 were calculated on the basis of the Completed Contract Method and have not been adjusted in this report.The effect on the operating result over the first half of 2002 was 1.9 million euro positive. Up to and including 2002 reorganisation costs were accounted for as extraordinary charges. As of 2003 these costs have been accounted for under operating result. In the first half of 2003 reorganisation costs amounted to 2.5 million euro.
Personnel
On 30 June 2003 the Company employed 13,154 staff compared with 13,780 at the end of 2002, a reduction of 4.5%. Some of this decrease is the result of the reduction in the number of staff involved in the telecom activities commenced last year and continued this year. The number of indirect staff employed in some other areas of the organisation has also been adapted to market conditions.Prospects
In the light of the worsening conditions, especially in the IT services, telecom and office buildings markets, Imtech has undertaken measures to reduce its indirect costs.Related reorganisation costs amounted to 2.5 million euro over the first half of 2003. These costs are expected to amount to around 8 million euro for 2003 as a whole.
Corrected for these reorganisation costs Imtech adheres to its forecast of March 2003 of an increase in turnover and EBITA for 2003 as a whole.
Imtech N.V.
Board of Management
Further information
Public Relations
Imtech N.V.
Mr. M.E.J. (Mark) Salomons
Company Secretary
Telephone: Int. + 31-(0)182 54 35 14
E-mail: mark.salomons@imtech.nl
www.imtech.nlInvestor Relations
Imtech N.V.
Drs. C.A. (Kees) van Rooden RA
Director of Finance
Telephone: Int. + 31-(0)182 54 35 04
E-mail: kees.vanrooden@imtech.nl
www.investors.imtech.nlProfile Imtech
Imtech N.V. is a European technical service provider in the field of information & communications technology, electrical engineering and mechanical engineering. With more then 13,000 employees, Imtech achieves an annual turnover of around 2.0 billion euro. Imtech holds strong positions in the buildings, industry, marine, infrastructure and telecoms markets in Belgium, Germany, Luxembourg and The Netherlands and is also active in England and Spain. Imtech shares are listed on the Euronext Stock Exchange (Amsterdam), where Imtech is included in the Midkap index (AMX) and the Next 150 index.Financial calendar
- Publication annual figures 2003: 9 March 2004
- Press conference and analysts' meeting: 9 March 2004
- General Meeting of Shareholders: 20 April 2004Press and analysts' meeting 19 August 2003, Hotel The Grand, Amsterdam
A press conference will be held on 19 August 2003 in Hotel The Grand, Oudezijds Voorburgwal 197, Amsterdam from 10.00 hours AM. The analysts' meeting will start at 12.00 hours AM. If you would like to attend either the press conference or the analysts meeting, please contact Astrid Marré on Int. + 31-(0)6 113 96 998.Live transmission on the Internet (web cast on www.imtech.nl)
The press conference on 11 March 2003 will be transmitted live as a web cast on the internet (www.imtech.nl) from 10.00 hours AM to approximately 11.00 hours AM.Photography
The media will be offered the following photographs via Fotopersbureau Dijkstra:
- Mr. René van der Bruggen, Chairman Board of Management Imtech N.V. and Mr. Boudewijn Gerner, member Board of Management Imtech N.V.;
- Photo of BMW: In a new automobile factory of BMW in Leipzig in Germany, Imtech is responsible for all the air and climate solutions and for the complex process technology in the fully automated paint shop.
- Photo of Marine frigate: Imtech is responsible for the modernisation of the platform automation on six Greek Navy's frigates.
For further information:
Fotopersbureau Dijkstra, telephone Int. + 31-(0)297 56 68 83, e-mail: dykfoto@wxs.nl
Financial summary, first half of 2003 Imtech N.V.¹
PROFIT AND LOSS ACCOUNT
IN MILLIONS OF EURO
BALANCE SHEET
IN MILLIONS OF EURO
NET TURNOVER
IN MILLIONS OF EURO
EBITA
IN MILLIONS OF EURO
TURNOVER AND EBITA PER HALF YEAR
IN MILLIONS OF EURO
CASH FLOW STATEMENT
IN MILLIONS OF EURO
CHANGES IN GROUP FUNDS
IN MILLIONS OF EURO
INDICATORS
BALANCE SHEET RATIOS
¹ The figures in this document have not been audited.
