BAUER AG reaffirms full-year forecast after first quarter results

Schrobenhausen – BAUER Aktiengesellschaft has seen a somewhat slow start to the present financial year. First-quarter results were hampered by delayed starts to some major projects, bad weather, and the usual seasonal effect of low machinery orders at the start of the year.

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The total Group revenues of the global construction engineering and machinery manufacturing concern were reduced slightly, down 2.6 percent at EUR 331.2 million (previous year: EUR 340.0 million). The net loss for the period of EUR 9.6 million (previous year: EUR 4.7 million) was normal in line with seasonal factors. EBIT (earnings before interest and taxes) decreased from EUR 6.4 million to EUR 2.3 million. This was likewise in line with the seasonal trend in Group performance normally reflecting a weak start to the year. Orders in hand increased by 6.9 percent against the previous year mainly due to the Construction and Resources segments, to EUR 803.4 million.

Business segments
With its three segments – Construction, Equipment and Resources – the Group operates a widely diversified yet well-balanced business model and an international network.

The total Group revenues of the Construction segment totalling EUR 153.6 million were reduced slightly, down 2.1 percent against the previous year. The key factors in this were the slow starts to some major projects. Segment EBIT decreased from EUR 2.3 million to EUR 0.3 million, as a result of bad weather on a number of markets among other factors. Orders in hand increased by 10.7 percent to EUR 512.6 million, being on the levels seen in the boom year of 2008.

The Equipment segment improved its total Group revenues by 8.5 percent to EUR 152.6 million. Segment EBIT decreased slightly, from EUR 5.0 million to EUR 3.8 million. Orders in hand totalling EUR 126.2 million remained on the ordinary lower levels seen since 2010. Orders and delivery lead times continued to be very short. The trend in service business and spare parts sales is rising.

In the Resources segment, the construction phase of the large-scale project in Oman was completed ahead of time last year. No follow-up contracts have yet been signed. As a result, the segment's total Group revenues fell by 32.6 percent to EUR 39.2 million and EBIT of EUR -2.4 million deteriorated markedly by comparison to the previous year (EUR -0.6 million). Orders in hand at the end of March were at a healthy level of EUR 164.6 million. 

Outlook
The Group's orders in hand increased by 6.9 percent to EUR 803.4 million during the reporting period.

Chairman of the Management Board Professor Thomas Bauer comments: "There are large numbers of major projects all around the world for which our expertise is in demand. A major investment backlog has built up in infrastructure, and that will provide healthy revenues for the construction business over the years ahead, despite public-sector budget constraints." He also believes the construction machinery market will be able to profit from increasing replacement demand. The company is well positioned thanks to its range of specialist machinery. New products for drilling underwater and for deep drilling in the oil, gas and geothermal energy sectors, as well as for emergency mine recovery, offer the Group good opportunities.

Professor Bauer continues: "Our new developments are attracting great interest. We saw clear signs of that at Bauma." At the world's largest construction machinery trade fair held in Munich in mid-April, Bauer won the Innovation Award in recognition of its underwater drilling technique. The company sees opportunities for its Resources segment primarily in the Middle East, where negotiations on a number of major projects are currently ongoing.

BAUER AG is confident of being able to realize its growth plans and to meet the full-year forecast it made in April 2013, predicting total Group revenues of more than EUR 1.5 billion and profit after tax of above EUR 30 million, equating to EBIT of around EUR 85 million.

Our full Interim Report, including a detailed analysis of the individual segments and markets, can be found on our website at http://www.bauer.de.

Contact:
Christopher Wolf
Investor Relations
BAUER Aktiengesellschaft
BAUER-Straße 1
86529 Schrobenhausen
Tel.: +49 8252 97-1797+49 8252 97-1797
Fax: +49 8252 97-2900
Email: investor.relations@bauer.de
Internet: www.bauer.de