Stork financial year 2007: Technical Services excellent, tough year
for Aerospace.
* Net result 2007: ¤ 67 million, eps: ¤ 2.21
(2006: ¤ 150 million, eps: ¤ 4.76)
* EBIT: ¤ 74 million (2006: ¤ 150 million)
* Turnover up 8% to ¤ 2.163 billion (2006: ¤ 2.009 billion)
* Order portfolio up by 10% to ¤ 1.176 billion
(2006: 1.062 billion)
CEO Sjoerd Vollebregt:
"Seen over the full financial year, broadly speaking our activities
have performed reasonably well. Turnover was up and the order book
was good. Results fluctuated by division. Technical Services
performed excellently, while times were tough for Aerospace and for
specific units of Food Systems. The sale of Prints was concluded in
November.
Due to the now successful bid for Stork lead by Candover and the
related sale of Food Systems to Marel, after two highly turbulent
years, we have finally moved into calmer waters.
Aerospace and Technical Services will now form a business with a
turnover of one and half billion euro and almost 13,000 employees. We
are now once again in a position to focus fully on strengthening and
expanding our activities."
Key figures
+-------------------------------------------------------------------+
| (in ¤ x | Q4 | Q4 | D | 2007 | 2006 | D |
| million) | 2007 | 2006 | | | | |
| | | | | | | |
|----------------+-------+---------+------+-------+---------+-------|
| Net turnover | 591 | 539 | 10% | 2,163 | 2,009 | 8% |
|----------------+-------+---------+------+-------+---------+-------|
| EBIT* | 12 | 10 | 20% | 56 | 102 | (45)% |
|----------------+-------+---------+------+-------+---------+-------|
| EBIT | 27 | 9 | 170% | 74 | 150 | (51)% |
|----------------+-------+---------+------+-------+---------+-------|
| Net result | 30 | 25 | 24% | 66 | 150 | (55)% |
|----------------+-------+---------+------+-------+---------+-------|
| EPS (in ¤) | 1.03 | 0.80 | 29% | 2.21 | 4.76 | (54)% |
|----------------+-------+---------+------+-------+---------+-------|
| Orders | 610 | 590 | 3% | 2,241 | 2,083 | 8% |
| received | | | | | | |
|----------------+-------+---------+------+-------+---------+-------|
| Order book | 1,176 | 1,062 | 11% | 1,176 | 1,062 | 11% |
+-------------------------------------------------------------------+
* For specials: consultants' costs 2006, book profit divestments
Operational developments
Results for Aerospace Industries over the whole year were negative,
as expected, partly due to the provision taken in June 2007 for the
NH90 programme. Results at Aerospace Services remained behind
expectations due to the losses in Aircraft Conversion & Completion
projects.
Food Systems performed well throughout the year, but failed to match
last year's results due to a reorganisation provision in the fourth
quarter for Food & Dairy Systems.
Technical Services continued the excellent results from the first
three quarters into the fourth quarter thanks to Industry Services
and in particular Industry Specialists.
Financial position
In the fourth quarter, the liquidity position improved from ¤ 115
million negative to ¤ 42 million negative, partly thanks to income
from the sale of Stork Prints. Operational cash flow in the fourth
quarter of 2007 totalled ¤ 67 million (Q4 2006: ¤ 72 million).
Investments in the fourth quarter were ¤ 8 million higher than
depreciation. The net debt position (liquidity minus long-term loans)
increased in the fourth quarter from
¤ 147 million negative to ¤ 83 million negative.
Acquisitions and divestments
Further acquisitions were concluded in the fourth quarter. Industry
Specialists strengthened the Materials Technology activities through
the acquisition of Sheffield testing (UK) and Mannings (UK). Industry
Services concluded the acquisitions of Masa (Columbia), Exmont
(Slovakia) and Istimewa (NL).
A 60% interest in Prints was sold to Bencis Capital Partners.
Prospects
Without an economic recession, further growth in activities, both
autonomous and through acquisitions is expected in 2008, with
corresponding result improvements.
Overview by group 2007
Aerospace
+-------------------------------------------------------------------+
| (in ¤ x | Q4 | Q4 | D | 2007 | 2006 | D |
| million) | 2007 | 2006 | | | | |
| | | | | | | |
|-------------------+-------+--------+------+--------+---------+----|
| Net turnover | 147.8 | 152.7 | (3)% | 553.0 | 548.5 | 1% |
|-------------------+-------+--------+------+--------+---------+----|
| EBIT | 1.0 | (19.5) | -% | (24.1) | 10.8 | -% |
+-------------------------------------------------------------------+
Over the entire year, the result within Aerospace Industries remained
very negative due to delays with the Airbus A380 and the problems
surrounding the NH90 military transport helicopter for which in June
a provision of ¤ 35 million had to be taken. In October, a major
order was received for the design and construction of structural
parts for a leading aircraft manufacturer. Stork expects annual
turnover of US $ 60 million for this programme.
Aerospace Services completed a disappointing year, mainly due to
losses within the Aircraft Conversion & Completion division. The
Component Maintenance Services division performed as expected.
Technical Services
+-------------------------------------------------------------------+
| (in ¤ x | Q4 | Q4 | D | 2007 | 2006 | D |
| million) | 2007 | 2006 | | | | |
| | | | | | | |
|--------------------+-------+-------+-----+---------+--------+-----|
| Net turnover | 333.5 | 242.4 | 36% | 1,089.3 | 868.4 | 25% |
|--------------------+-------+-------+-----+---------+--------+-----|
| EBIT | 27.2 | 18.7 | 45% | 81.5 | 58.5 | 39% |
+-------------------------------------------------------------------+
In the fourth quarter, Technical Services continued the excellent
results from the first three quarters.
The market for Industry Services was once again positive. As a result
both turnover and the order book were well up.
In the second half of the financial year, the acquisitions of
Méchanicos Asociados SA (MASA, Columbia), Exmont Engineering
(Slovakia) and Istimewa Elektro (NL) were concluded.
In the fourth quarter, Industry Specialists achieved excellent
results partly due to favourable market conditions and acquisitions
(including Turbo Services GmbH). As a consequence, 2007 was a very
good year.
The Materials Technology activities were strengthened through the
acquisition of Sheffield testing (UK) and Mannings Southport Limited
(UK).
Food Systems
+-------------------------------------------------------------------+
| (in ¤ x | Q4 | Q4 | D | 2007 | 2006 | D |
| million) | 2007 | 2006 | | | | |
|---------------------+-------+--------+----+-------+---------+-----|
| Net turnover | 96.5 | 94.1 | 3% | 368.8 | 326.3 | 13% |
|---------------------+-------+--------+----+-------+---------+-----|
| EBIT | (0.1) | 7.7 | -% | 15.9 | 25.1 | 37% |
+-------------------------------------------------------------------+
Food Systems performed well throughout the year, partly due to
poultry processing activities, but fell behind on last year due to a
reorganisation provision in the fourth quarter for Food & Dairy
Systems and operational losses in that same unit.
The results of the Holding were positively influenced by the book
profit on the sale of a 60% interest in Prints, but negatively
influenced by costs for consultants and increased M&A activities.
NB: See the pdf file below for the complete press release
Press information:
Stork N.V.
Dick Kors
Tel.: 0031 (0) 35 - 695 75 75
