BAUER AG reaffirms forecast and enters Q4 with high levels of orders in hand

Schrobenhausen - BAUER Aktiengesellschaft has reaffirmed its revenue and earnings forecast for the current financial year and is entering the fourth quarter with high levels of orders in hand.

Total Group revenues of the international construction and machinery manufacturing concern for the first nine months of the year were EUR 1,063.2 million, up 5.4 percent on the previous year comparative period (EUR 1,008.9 million). Orders in hand increased by 4.7 percent to EUR 775.1 million, representing a further healthy rise over previous years. EBIT (earnings before interest and taxes) fell in the reporting period from EUR 51.5 million to EUR 45.2 million. At the end of September the Group posted an after-tax profit of EUR 6.2 million (previous year: EUR 14.2 million). Approximately EUR 7.5 million in respect of expected particular losses from major projects in the Construction and Resources segments was taken into account here. Excluding these extraordinary effects, the net profit for the period would have been approximately EUR 13.5 million, around EUR 0.5 million below the previous year comparative.

The company has reaffirmed the full-year forecast contained in its half-year interim report, predicting total Group revenues of EUR 1.45 billion and after-tax profit of between EUR 25 and 30 million.

Total Group revenues in the Construction segment rose in the first nine months of the year by 11.4 percent from EUR 434.5 million to EUR 484.0 million, thanks to a number of large-scale projects. EBIT increased from EUR 9.9 million to EUR 16.1 million.

Total Group revenues in the Equipment segment in the first nine months of the year fell by 5.2 percent to EUR 444.2 million (previous year: EUR 468.3 million). Segment EBIT decreased from EUR 34.3 million to EUR 20.1 million. The general uncertainty on many markets significantly weakened sales performance in the Equipment segment. The company sold fewer machines in China, in the Middle East, and in some European countries.

Ongoing trends in our Resources segment remain positive. Its total Group revenues rose by 17.6 percent to EUR 191.3 million (previous year: EUR 162.7 million). EBIT of EUR 8.7 million is slightly up on the previous year's level. This was where much of the provision for expected losses from major projects was made. Without that extraordinary effect, EBIT would have improved substantially.

Professor Thomas Bauer, Chairman of the Management Board of BAUER AG, comments on the good levels of orders in hand: "The general trend on global construction markets is showing slight growth, and our prospects are bright as we look to the year ahead." Orders in hand in the Construction segment total EUR 473.6 million - up 7.4 percent on the previous year comparative quarter, and on a level with the boom year 2008. Furthermore, a number of major projects have been acquired in recent weeks.

The Resources segment is currently working on a number of major projects. It has once again recorded outstanding levels of orders in hand totalling EUR 160.7 million (previous year: EUR 179.4 million). Demand is particularly strong in relation to environmental and exploration services, especially for the extraction of water. By contrast, orders in hand in the Equipment segment totalling EUR 140.9 million are at a low level.

The company expects to gain a competitive edge in future thanks to its broad product range. It has developed a number of new machines and techniques focused on complex specialist construction works. "We are now once again increasingly positive with regard to our future prospects," Professor Bauer asserts. "However, the financial crisis and its consequences have not yet been overcome - as we are seeing in our Equipment segment. We are continuing to plan for growth of between 5 and 10 percent in total Group revenues over the coming years. Based on current forecasts, our earnings will pick up again from 2013 onwards."

Christopher Wolf
Investor Relations
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