Theo Hoen, CEO of Marel, highlighted the main results of the third quarter. Revenues for the first nine months of 2013 amounted to 493.4m and show a 7.9% decrease compared to the same period last year.
Operating profit (EBIT) YTD is 7.2% of revenues which is below the company´s target (10-12%). The order book was at the end of the quarter at 138.3 m and increased by 5% since last quarter.
Theo Hoen, CEO:
“Full year revenues 2013 are expected to decline by 6-8% compared with previous year and moderate growth of revenues is expected next year on the heels of market recovery.”
Erik Kaman, CFO:
Erik Kaman, CFO, gave a comprehensive overview of the key financials.
“The EBIT margin in quarter 3 is 8.2% and is below our target. We are however, in the light of current environment, satisfied. We are not satisfied in the long run as we are aiming for the target range of 10-12%.”
Continued economic uncertainty and delay in investments is restraining the order book that grew by 5% compared with previous quarters
“The reason for a slower pace in new orders is the hesitation to invest, in particular in larger projects, whereas standalone equipment, and spare parts and service are on track.”
Theo then talked about long and medium term outlook in the industry.
“The prospects are good. We are operating in a fantastic market where the underlying need for protein is growing. According to the latest forecast the world will consume 60% more poultry in 2030 than what it is consuming now and 43% more pork.
“Beef consumption will grow by 25% in the same period. The global trends are in our favor. The middle class keeps growing and with that the consumption of protein.”