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* 2007 revenues increased 7.0% from prior year as a result of
volume growth in RPC Management Services.
* 2007 EBITDA increased 11.2% from prior year due to improved
performance in RPC Management Services and the continuing
recovery of Pallet Management Services.
* 2007 operating cash flows from continuing operations before
income tax payments increased 27.2% compared to 2006 due to
higher operating profit levels and improved working capital
performance.
2007 was a successful year for IFCO SYSTEMS. Following a challenging
2006, IFCO SYSTEMS further successfully expanded its RPC Management
Services business and almost recovered the profitability of Pallet
Management Services. The overall operating profit improved, even
though IFCO SYSTEMS 2007 results still continued to recover from the
2006 ICE investigation.
In 2007, IFCO SYSTEMS increased its reusable packaging business
development initiatives not only in existing markets, products and
services, but additionally in new product lines and new global
markets. This geographic and product line expansion positions IFCO
SYSTEMS as a global provider for all reusable packaging needs, aiming
to enhance IFCO SYSTEMS' leadership and strategic positioning.
Revenues grew by US $45.3 million, or 7.0% (currency adjusted 3.6%),
to US $692.5 million in 2007. Revenues in the RPC Management Services
business grew by 16.1% (currency adjusted by 8.0%), whereas revenues
in the Pallet Management Services business segment were flat overall
as compared to 2006. However, the year-over-year revenue development
of the Pallet Management Services segment has improved in recent
quarters as a result of the Company's focus on volume growth after
recovering its full production capacity following the ICE
investigation in Q2 2006.
Gross profit increased by US $13.6 million, or 12.5%, to US $122.6
million, following absolute gains in both business segments.
RPC Management Services' overall gross profit margin dropped from
24.8% to 23.2% in 2007. Gross profit margin in RPC Europe was overall
flat. RPC Europe generated higher volumes in more profitable
countries and positive economies of scale offset by the one time
accrual, in the amount of US $3.3 million, for the costs related to
the recollection of crates used by a retailer until December 2007
(contract terminated following the end of 2007). The overall RPC
gross profit margin was further negatively impacted due to the
accelerated depreciation of the CHEP USA RPC pool. Eliminating this
accounting effect, RPC Management Services' overall gross profit
margin would have been flat compared to prior year.
Pallet Management Services' gross profit margin improved by 2.0
percentage points to 12.6% in 2007, as this segment's productivity
and cost efficiency continues to recover.
EBITDA increased during 2007 by US $10.8 million, or 11.2% (currency
adjusted 4.9%), to US $107.1 million, and EBITDA margin grew to 15.5%
in 2007 from 14.9% in 2006.
EBIT increased by US $4.2 million, or 6.8%, to US $66.5 million. The
smaller increase in EBIT as compared to EBITDA was primarily the
result of the accelerated depreciation of the CHEP USA RPC pool
acquired during 2006.
Net profit decreased by US $10.2 million, or 27.3%, to US $27.1
million in 2007. The reduction is primarily caused by non operating
items such as higher 2007 deferred income tax provision and the
non-recurring 2006 gain resulting from the RPC pool adjustment
following the phase out of the old generation RPC pool.
Operating cash flows from continuing operations before income tax
payments increased by US $25.2 million, or 27.2%, to US $117.8
million in 2007, as a result of higher operating profit levels and
improved working capital performance. The improved working capital
was the result of increased trade payable and refundable deposit
levels, partially offset by higher accounts receivables.
Capital expenditures decreased by US $23.8 million, or 23.5%, to US
$77.5 million, largely due to the acquisition of the CHEP USA RPC
assets in Q1 2006. Excluding both the CHEP USA RPC asset acquisition
in Q1 2006 and the Q3 2007 acquisition of the shares in IFCO SYSTEMS
Argentina S.A., capital expenditure levels decreased by US $2.2
million, or 2.9%, as compared to 2006.
ROCE from continuing operations decreased to a level of 17.2% in 2007
after 18.4% in 2006. ROCE was positively affected by the improved
operational performance in 2007. However, Capital Employed increased
significantly, primarily as the result of the continuing investments
in IFCO SYSTEMS' RPC pool.
US $ in thousands, except per 2007 2006 %
share amounts Change
Revenues 692,548 647,236 7.0%
Gross profit 122,606 108,966 12.5%
Gross profit margin 17.7% 16.8%
EBITDA 107,090 96,274 11.2%
EBITDA margin 15.5% 14.9%
EBIT 66,535 62,289 6.8%
EBIT margin 9.6% 9.6%
Net profit 27,107 37,287 (27.3%)
Net profit per share - basic 0.50 0.70 (28.5%)
Net profit per share - diluted 0.50 0.69 (27.9%)
Operating cash flows from
continuing operations 117,766 92,560 27.2%
Capital expenditures from
continuing operations 77,499 101,300 (23.5%)
Return on capital employed
(ROCE) 17.2% 18.4%
Outlook: IFCO SYSTEMS anticipates that the economies in Western
Europe will soften in 2008 as compared to 2007. Although IFCO SYSTEMS
sees significant short-term risk in the United States economy, the
company expects to outpace overall economic growth in 2008.
IFCO SYSTEMS does not anticipate significant changes in its overall
strategies in the near term and expects that the business development
which has existed in recent years to remain in place during 2008. The
company believes that the above trends will result in increased
revenues and operating profits during 2008 as compared to 2007.
Financially, IFCO SYSTEMS is in a sound position and plans its
businesses so that it is able to fund its capital, operational and
debt service requirements through its own operational cash flows.
For further explanations, please see IFCO SYSTEMS' annual report,
which will be filed with the Deutsche Börse AG on or about February
21, 2008, and will be available on the Company's website
www.ifcosystems.com or www.ifcosystems.de.
This release contains forward-looking statements that reflect
Management's current view with respect to future events. All
statements contained in this release that are not clearly historical
in nature or necessarily depend on future events are forward-looking.
The words "anticipate", "believe", "expect", "estimate", "planned"
and similar expressions are generally intended to identify
forward-looking statements. These statements are based on current
expectations, estimates and projections of the Management on
currently available information. Many factors could cause the actual
results, performance or achievements to be materially different from
those that may be expressed or implied by such statements. We do not
assume any obligation to update the forward-looking statements
contained in this release.
IFCO SYSTEMS
Dominic Bach
Investor Relations
Tel: +49 89 74491 222
Fax: +49 89 744767 222
Email: ir@ifcosystems.com
www.ifcosystems.com or www.ifcosystems.de
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IFCO Systems N.V.
Zugspitzstraße 7 Pullach
WKN: 157670; ISIN:
NL0000268456 ; Index: CLASSIC All Share, Prime All Share;
Listed: Amtlicher Markt in Frankfurter Wertpapierbörse, Freiverkehr
in Bayerische Börse München,
Freiverkehr in Hanseatische Wertpapierbörse zu Hamburg, Freiverkehr
in Börse Düsseldorf,
Prime Standard in Frankfurter Wertpapierbörse;
