During the meeting Árni Oddur Thórdarson, CEO of Marel, highlighted the main results of the quarter.
Revenue was 155 million EUR with 4.6 million in adjusted EBIT in Q1 2014. Revenue declined by 2% compared with same quarter in previous year. Net loss for Q1 2014 was 1.9 million.
Revenue from large projects were at a low level while the sale of standards equipment increased between years. Results are adversely affected by refocusing costs and under-utilization.
First quarter results are also affected by various non-recurring items that are not part of the formal refocusing plan.
Marel is now refocusing for profitability improvement and growth and the refocusing plan of becoming simpler, smarter and faster is proceeding according to plan.
“Our EBIT is in our view below our potential; the adjusted EBIT is 4.6 m, there we adjust 3.6 m million that is one- off cost directly related to our refocusing program of becoming simpler, smarter and faster.
“The benefit of those actions taken in the first quarter is that our cost base is driven down by 3.6 million ongoing from this quarter. The total target for the next 18-24 months is 20-25 million in annual cost saving”.
Erik Kaman, CFO, gave a comprehensive overview of the key financials.
“The Q1 business results are definitely below our potential. The revenue is 2.1% down and the gross margin is 3% down compared with same quarter in previous year. For this are mainly three reasons. First we have some non-recurring cost in the first quarter which belongs to other time periods, early 2013.
“It is about old projects, it is about cleaning up some balance sheet items totaling 2.4 million causing the reduction of 1.5 % in gross profits. The second thing is under-utilization and the last thing is that we took on projects in difficult market circumstances in 2013 causing pressure on margins.”