revenue up 19 percent to € 75.5 million / EBIT up 46.8 percent to € 8.0 million / net profit € 4.8 million or 0.71 per share / CFO is leaving the Board of Management
Sassenberg, August 8th, 2006
Following the exceptionally dynamic start to the 2006 financial year, the second quarter likewise proved highly successful for technotrans. The Group posted revenue of € 37.6 million, 15.2 percent more than in the second quarter of the previous year (€ 32.7 million). Revenue at the year's mid-way point had thus already reached € 75.5 million, equivalent to 19 percent growth (previous year € 63.4 million). Growth this year stems first and foremost from the substantially improved mood within the printing industry.
Revenue growth once again produced a marked improvement in earnings. Gross profit in the second quarter rose to € 12.5 million (previous year € 11.6 million, up 8.5 percent) and amounted to € 25.8 million at the half-way mark for the current financial year (previous year € 21.4 million), representing an improvement of 20.5 percent.
Earnings before interest and tax (EBIT) were € 4.2 million in the second quarter of 2006. This figure already includes some of the anticipated costs of the merger of production operations in the USA. Compared with the corresponding prior-year figure of € 2.7 million, this represents an increase of 56.7 percent. In addition to the higher revenue volumes, the change is attributable to slight improvements in certain cost items.
The net profit for the period rose to € 2.4 million, compared with € 1.7 million in the previous year. At the year's half-way mark it had reached € 4.8 million (previous year € 3.1 million), an increase of 51.5 percent. Earnings per share mirrored this development, rising from € 0.25 in the previous year's second quarter to € 0.36. The halfyear figure is € 0.71 (previous year € 0.48).
The number of employees showed a moderate rise over the first six months of 2006; the group had an average of 708 employees (previous year 680, up 4.1 percent).
The segments
The Technology segment again enjoyed substantial growth in the second quarter of 2006. Revenue rose to € 28.7 million (previous year € 25.2 million), representing an increase of 13.6 percent. In the first half of the year, revenue showed an overall increase of 19.5 percent to € 58.3 million (previous year € 48.8 million). Those product lines that are aimed at customers in the printing industry proved particularly successful. The Technology segment continues to account for the bulk of revenue, with a share of 77.3 percent.
technotrans again succeeded in improving the earnings for the segment in the second quarter by topping a figure of € 2.9 million (previous year € 1.5 million). The EBIT margin is now 10.3 percent compared with 5.9 percent in the second quarter of the previous year, and therefore back up at the level before the printing industry's multi-year crisis.
Second-quarter revenue for the Services segment showed a rise of 20.9 percent to € 9.0 million (previous year: € 7.4 million), thus reaching a new record level. Revenue at the year's half-way mark was up 17.4 percent to € 17.2 million (previous year € 14.6 million). This rise in revenue went hand in hand with an improvement in earnings to € 1.1 million compared with both the corresponding prior-year quarter (€ 1.0 million) and the distinctly weak first quarter of this year (€ 0.9 million). The margin in the Services segment improved as announced, rising slightly in the second quarter to 12.7 percent, from 10.9 percent in the first quarter of this year. The measures that have been taken are beginning to make an impact, and Management expects to see a further improvement in profitability as the financial year progresses.
Outlook
"technotrans is able to look back on a decidedly successful first half," says Heinz Harling, CEO of technotrans. "It yet again succeeded in making better progress than the industry in general. On the basis of existing plans, we expect the favourable climate to continue over the coming months and are consequently very confident of achieving our targets for the year as a whole, namely revenue of more than € 140 million and a net profit for the year of between € 8.5 and 9 million." Board of Management describes business progress for the year to date as "better than expected", and will review these targets when the next quarterly report is published.
New Finance Director
The company furthermore announces that Burkard Rausch (50), Finance Director of technotrans since April 2005, is leaving the Board of Management with effect from August 8, 2006. His departure is by mutual agreement. He will be succeeded by Dirk Engel (39), who has been in charge of Finance and Accounts for the technotrans Group since April 2004 and will also assume responsibility for the areas Controlling, IT and Human Resources in his new post as CFO. Key Data 01-06/2006 Dates: Publication of the figures for the third quarter and the first nine months 2006 is scheduled for November 7, 2006. Securities: technotrans AG - ISIN DE0007449001 - German Securities Identification No. WKN 744 900 Download the complete Press Release.
