Revenue up 23 percent to EUR 37.8 million / EBIT up 37 percent to EUR 3.8 million / net profit for the period EUR 2.3 million or EUR 0.35 per share / Outlook: growth continues
The broad-based recovery of the industry is also reflected by technotrans' figures. The Group posted revenue of EUR 37.8 million for the first quarter of 2006, 23 percent more than in the first quarter of last year (EUR 30.8 million). This consequently represented a further improvement on the excellent figure for last year's fourth quarter (EUR 35.3 million). Against a backdrop of a more positive mood in the markets and industries, almost all established product groups contributed towards this growth
The dynamic growth in revenue fuelled a further improvement in earnings. Gross profit after three months rose to EUR 13.2 million (previous year: EUR 9.8 million, increase of EUR 34.7 percent), and the gross margin reached 34.9 percent compared with 31.9 percent in the corresponding prior-year period. Earnings before interest and taxes (EBIT) improved by 37.2 percent, from EUR 2.7 million in the first quarter of 2005 to EUR 3.8 million, the EBIT margin recovered to 9.9 percent (previous year 8.9 percent). At the end of the first quarter, the net profit for the period is EUR2.3 million (previous year: EUR 1.5 million) and is thus in line with our targets. Earnings per share rose from EUR 0.22 in the previous year to EUR0.35 in the first quarter of 2006.
At the end of March, the technotrans Group employed 714 people (previous year: 680).
The segments
The Technology segment, in which the activities of the two former segments Print and Micro Technologies have been brought together, was able to maintain its dynamic growth in the first quarter of 2006. Revenue rose by 25.8 percent to EUR 29.6 million (previous year EUR 23.6 million). This positive development was bolstered in particular by the broad-based recovery that the printing industry worldwide is currently enjoying.
The operating result for the segment likewise made good progress. Compared with the prior-year period (EUR 1.5 million), EBIT was up 81.4 percent to EUR 2.8 million. The margin reached a satisfactory level of 9.5 percent. In addition to greater efficiency in the core business activities, this reflects the improved earnings situation of the Group's international production companies in particular.
First-quarter revenue for the Services segment showed a rise of 13.8 percent to EUR 8.2 million (previous year: EUR 7.2 million). This is the highest level for this figure in the company's history, aptly underlining the significance of this business area for the group as a whole.
The operating result showed a downturn, totalling only EUR 891 thousand after the first quarter (previous year: EUR 1.1 million). This development was not envisaged in the targets for the financial year, and measures have been taken to address problem areas in the international structures, as a result of which an improvement in profitability should be seen as the year progresses.
Outlook
technotrans has been able to share in industry's broad-based recovery over the past three months, and everything points towards this more favourable climate continuing in the short to medium term. Heinz Harling, Chairman of the Board of Management: "We are therefore very confident - also in view of the very good start to the financial year - that we will achieve our targets for the full year." The plans envisage revenue of more than EUR 140 million and a net profit of between EUR 8.5 and 9 million.
As a systems supplier with a broad product range, technotrans has chosen to demonstrate the new contex.c blanket cleaner to a wider audience at this year's most important industry exhibition, the IPEX, which took place in April in Birmingham, UK. "The level of interest even exceeded our expectations," Heinz Harling sums up his observations. "In intensive discussions with all major printing press manufacturers we were able to explain the technical details of our new system and present its benefits. We are therefore confident that the scheduled product launch will prove a success and that the product area will contribute to the degree expected to the further growth of our company." The company is planning to start volume production this year. Key Data 01-03/2006 Dates: Publication of the figures for the second quarter of 2006 is scheduled for August 8, 2006. Securities: technotrans AG - ISIN DE0007449001 - German Securities Identification No. WKN 744 900 Download the complete Press Release.
