• Earnings target not achieved on reporting date • Positioning in Eastern
Europe further strengthened
• Positive outlook for 2007-08 confirmed
Sales for the HIRSCH Servo Group were up 36.0 MEUR to 104.7 MEUR in fiscal 2006-07, the highest level in the company’s 35-year history (previous year: 68.7 MEUR). The profit on ordinary activities (POA), however, was down 17% to 3.8 MEUR (PY: 4.6 MEUR). On the earnings side, the Packaging Division showed negative growth. The Insulation division and the Machinery and Plant Engineering business segment achieved higher profits than in the previous year. The largest investment program in the company’s history at 18.3 MEUR is primarily due to plant extensions in Poland, Romania and Hungary, and expansion in insulation manufacture at Glanegg.
In the primary business segment EPS Processing, the POA was nearly halved to 1.5 MEUR (PY: 2.9 MEUR). The operating profit (EBIT) fell to 2.1 MEUR (PY: 4.6 MEUR). What primarily accounted for the drop in the POA in the Packaging division was the sharp rise in raw material prices in the first half year and the reduction in profitability at the Polish plants to -0.4 MEUR (PY: 1.3 MEUR). The Insulation division succeeded in increasing POA to 1.9 MEUR (PY: 1.6 MEUR). This rise is the result of higher sales in the Insulation division and the contribution to operating profit from the new company acquired, Polyform s.r.o. Sales in EPS Processing were up 55% to 69.3 MEUR (PY: 44.8 MEUR).
The Machinery and Plant Engineering business segment achieved record figures with the POA at 2.3 MEUR (PY: 1.7 MEUR) and a 48% increase in sales to 35.2 MEUR (PY: 23.8 MEUR). This performance is due to the two business units shape and block molding equipment. What also had a positive effect on sales was major orders that were received but not shipped by June 30. Delays in payments from customers ultimately meant that the Group earnings target of 5.7 MEUR could not be met.
The annual net income fell to 2.8 MEUR (PY: 3.6 MEUR) and the earnings per share to 5.78 euros (PY: 7.44 euros).
Given the increased raw material inventories amounting to 8.7 MEUR, the cash flow from operating activities sank to -2.7 MEUR (PY: 6.5 MEUR).
At the reporting date June 30, 2007, the HIRSCH Servo Group employed 669 people. The annual average rose to 604 (PY: 478 people) with growth mainly located in Eastern Europe and Austria where capacity was expanded.
Investment, particularly in expansion to the east, was the highest to date at 18.3 MEUR (PY 12.4 MEUR) and will therefore also play an important role in the Group’s future development. Production capacity in the EPS Processing business segment rose from 25,000 to 32,000 tonnes per annum because of expansion in insulation manufacture at Glanegg, extensions to the two Polish plants, the Cluj facility (Romania) and Sarvar (Hungary).
The Board will submit a proposal to the 12th Annual General Meeting to distribute a dividend of 2.35 euros per share (PY 3.20 euros).
Outlook
Management confirms the forecast for fiscal 2007-08 with a POA of 6.5 MEUR. The improvement in POA should be achieved with the sales growth in EPS Processing as a result of the investments in expansion already carried out and the effectiveness of the new developments presented in 2006-07.
A rise in earnings of at least ten percent is expected for 2008-09, as the HIRSCH Servo Group will continue to implement its growth strategy systematically. New developments, such as the HIRSCH Pallet, which could be produced in larger numbers and sold more profitably if required are also in the pipeline.
|
|
|
Fiscal |
Change |
|
Sales |
68,724 |
104,652 |
+52 |
|
EPS Processing |
44,841 |
69,307 |
+55 |
|
Machinery and Plant Engineering |
23,773 |
35,235 |
+48 |
|
Other activities |
110 |
110 |
- |
|
EBITDA |
10,104 |
9,799 |
-3 |
|
EBIT |
6,566 |
4,745 |
-28 |
|
POA |
4,577 |
3,845 |
-16 |
|
EPS Processing |
2,891 |
1,513 |
-48 |
|
Machinery and Plant Engineering |
1,666 |
2,325 |
+40 |
|
Other activities |
20 |
7 |
-65 |
|
Annual net income |
3,607 |
2,833 |
-21 |
|
Earnings per share (in EUR) |
7.44 |
5.78 |
-22 |
|
Investment |
12,371 |
18,284 |
+48 |
|
Cash flow from operating activities |
6,452 |
-2,701 |
- |
|
Equity |
23,478 |
27,516 |
+17 |
|
Equity ratio in % |
32.5 |
26.1 |
- |
|
Balance sheet total |
72,332 |
105,310 |
+46 |
|
Average price (in EUR) |
57.76 |
141.69 |
+145 |
|
P/E ratio as at June 30 |
12 |
35 |
+192 |
|
Dividend yield in % as at June 30 |
3.6 |
1.2 |
- |
The next date on the financial calendar is November 30, 2007 when the results for the first quarter 2007-08 will be announced.
*The HIRSCH Servo Group is the EPS specialist on the Vienna Stock Exchange with manufacturing facilities in Austria, Hungary, Poland, Slovakia, Italy and Romania. EPS products (EPS stands for expandable polystyrene and is better known under the brand name of Porozell®) support a variety of functions, including energy savings, as well as sustainable and eco-friendly growth. Their wide-ranging applications cover packaging, shape-molded parts, building insulation, modular boards for underfloor heating, construction blocks and Thermozell® lightweight concrete products.
For further information, please contact Michaela Promberger, Tel: +43 4277 2211-312,
Fax: +43 4277 2211-370, E-mail: michaela.promberger@hirsch-gruppe.com,
www.hirsch-gruppe.com