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Marel Q4 2010 Results

02 Feb 2011

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Marel 2010 results

Strong growth and good profitability

 

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  • Revenues for 2010 totalled 600.4 mln. Revenues from core business amounted to 582.1 mln, an increase of 34% compared to the year before [2009: 434.8 mln].
  • EBITDA from normalized core businesses was 88.1 mln or 15.1% of revenues [2009: 47.4 mln]. Consolidated EBITDA 2010 was 82.2 mln [2009: 58.8 mln].
  • Operating profit from normalised core businesses was 64.1 mln or 11% of revenues [2009: 24.8 mln]. Consolidated EBIT was 57.3 mln in 2010 [2009: 8.0 mln].
  • Net result in 2010 was 13.6 mln [2009: a loss of 11.8 mln].
  • Cash flow continues to be strong and net interest bearing debt has been reduced to 256.7 mln at the end of 2010 [2009: 295.0 mln].
  • Long-term financing in the amount of 350 mln was secured at favourable terms and conditions.
  • The order book grew throughout the year as a result of a strong product pipeline and improved market conditions. The order book stands at 162.2 mln at the end of the year [2009: 105.8 mln].

Marel had a very good year in 2010. Revenues from core business amounted to 582.1 mln, an increase of 34% over the previous year. The level of market activity increased gradually during the course of the year, with orders received exceeding revenues in each consecutive quarter. The result was a continuing increase in the order book, which stood at a record 162.2 mln at the end of the year, an increase of 53% compared to the year before.

Marel reached a major milestone in November 2010 when it signed an agreement with a group of six international banks on long-term financing in the amount of 350 mln, providing a strong foundation for the future.

Q4 2010 results

Excellent performance and strong order book

Marel had an excellent quarter with 167.7 mln in revenues, 26.1 mln in EBITDA and 20.1 mln in EBIT.

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  • Revenues for Q4 2010 totalled 167.7 mln, an increase of 49% compared to revenues from core business the year before [Q4 2009: 112.5 mln from core business; 135.7 mln consolidated].
  • EBITDA for Q4 2010 was 26.1 mln, or 15.6% of sales [Q4 2009: 12.8 mln from core business; 12.0 mln consolidated].
  • Operating profit (EBIT) for the quarter was 20.1 mln, or 12% of sales [Q4 2009: 6.9 mln from core business; a loss of 19.6 mln consolidated].
  • Net result was 5.5 mln for Q4 2010 [Q4 2009: a loss of 23.0 mln].
  • The integration of the Marel and Stork Food Systems companies into one unified company was formally completed at the end of Q3. The main focus now is on increased profitability and internal growth through innovation, market penetration and operational excellence.

Marel is benefitting strongly from its decision to maintain its level of investment in research and development during the past two years. Thanks to a steady stream of innovative new products and a strong product pipeline, orders received, including service revenues, amounted to 188.6 mln in Q4 2010, compared to 132.2 mln for the same period the year before. The strengthening of the global sales and service network, undertaken as part of the integration process, was also a key factor in enabling the company to capture its fair share of the market. The number of large orders has bounced back to the levels they were at before the crisis and financing of such projects is no longer an issue for Marel’s customers. Once again, orders received exceeded orders booked off, leading to a continuing increase in the order book, which stood at a record 162.2 mln at the end of Q4 2010, compared to 105.8 mln at the same time the year before. The excellent level of the order book enables Marel to make a good start in 2011.

Operational cash flow before interest and tax remains healthy at 33.5 mln in Q4 and 114.9 mln for the year. The balance sheet is strong and net debts amount to 256.7 mln compared with 295.0 mln a year ago.

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For further information, contact:

Jón Ingi Herbertsson, Investor and Public Relations Manager
tel: (+354) 563-8451

Erik Kaman, CFO,
tel: (+354) 563-8072

Sigsteinn Grétarsson, Managing Director of Marel ehf.,
tel: (+354) 563-8072

 

Forward-looking statements
Statements in this press release that are not based on historical facts are forward-looking statements. Although such statements are based on management’s current estimates and expectations, forward-looking statements are inherently uncertain. We, therefore, caution the reader that there are a variety of factors that could cause business conditions and results to differ materially from what is contained in our forward-looking statements, and that we do not undertake to update any forward-looking statements. All forward-looking statements are qualified in their entirety by this cautionary statement.