Disclosure announcement transmitted by euro adhoc.
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- Order intake remains on a high level
- Sales +25% to EUR 109.2 million
- EBIT improves from EUR 0.6 million to EUR +3.0 million
- Profit for the period rises from TEUR 137 to TEUR 1,661
The positive trend evident within the CHRIST Group continued in the
second quarter of 2006. "We made great progress in most areas and
take advantage of growth opportunities benefiting from a positive
capital goods investment cycle," says Karl Michael Millauer, CEO,
commenting on the first half-year figures.
Order receipts for the first half of the year were on target at EUR
110.6 million almost matching the prior year's figure of EUR 117.4
million, which had been based on a greater number of orders for
municipal drinking and wastewater projects. At EUR 147.8 million,
orders on hand were up 25% on the prior year (EUR 118.1 million).
Sales increased by 25% from EUR 87.1 million in the first half of
2005 to EUR 109.2 million in 2006.
@@start.t2@@Sales per segment (in EUR '000) 1 - 6 / 2006 1 - 6 / 2005 + / - %
Pharma & Life Science 22,525 19,169 + 18 %
Ultrapure Water 52,531 37,909 + 39 %
Food & Beverage 11,437 10,131 + 13 %
Municipal Water Treatment 22,739 19,882 + 14 %
Total 109,232 87,091 + 25 %@@end@@
The upward trend in the Pharma & Life Science segment apparent in the
first quarter of this year continued and sales rose by 18% to EUR
22.5 million. In particular, the healthy state of European domestic
markets, together with the project-related support of key CHRIST
customers throughout the world, proved to be crucial factors for this
As a major market participant in the Ultrapure Water segment, CHRIST
is benefiting from buoyant market conditions in the microelectronics
sector (semiconductor, printed circuit board, flat-screen industry)
particularly in Asia, as well as from the growing investment in power
plants in Europe and the Middle East. Sales in this segment rose to
EUR 52.5 million, 39% above the prior year.
Following a downturn last year, sales in the Food & Beverage segment
increased by 13% to EUR 11.4 million this year (prior year: EUR 10.1
million). This figure does not include the majority shareholding
acquired in KF Service GmbH, for which a letter of intent has been
The Municipal Water Treatment segment is continuing to benefit from
the high demand for drinking water, desalination and wastewater
treatment systems in many regions around the globe. Orders from
China, Eastern Europe and the Middle East increased sales by a
further 14.4% to EUR 22.7 million (prior year: EUR 19.9 million).
Sales growth in the service and spare parts business was 26.5%
outperforming the increase in group sales and at EUR 16.3 million
accounting for 15% of total sales.
Operating profit (EBIT) improved considerably increasing from EUR 628
thousand in 2005 to EUR 3,027 thousand in the first six months 2006.
This represents a four-fold increase in the EBIT margin from 0.7% to
2.8% in relation to sales.
EBIT per segment (in EUR '000) 1 - 6 / 2006 1 - 6 / 2005
Pharma & Life Science 816 511
Ultrapure Water 2,349 -829
Food & Beverage -640 -317
Municipal Water Treatment 502 1,263
Total 3,027 628
Profit growth in the Pharma & Life Science is welcome but is
tarnished somewhat by negative contributions to results from the
joint ventures in China and the USA. EBIT of EUR 816 thousand (prior
year: EUR 511 thousand) means an EBIT margin of 3.6% and despite the
competitive market environment is not reaching its potential.
Following a loss of EUR 829 thousand last year in the Ultrapure Water
business sector, EBIT of EUR 2,349 thousand is a major factor in the
Group result. By concentrating on its core competences and on a
global strategy, CHRIST can benefit from economic conditions in
booming microelectronics markets in the Far East. The power plant
business is also providing an important impetus. Some projects have
already been commissioned in Europe and the Middle East and the high
number of enquiries and requests for quotes reveal the high potential
Operating losses in the Food & Beverage segment increased from EUR
-317 thousand in 2005 to EUR -640 thousand in the course of the
current period of adjustment. Current order receipts together with
new projects that are nearing completion lead us to expect a
significant improvement in earnings in the second half of the year.
The Municipal Water Treatment segment suffered a project-related
decline in its operating result, falling from EUR 1,263 thousand to
EUR 502 thousand. This resulted primarily from a higher volume of
consortium operations at a low return together with losses in
earnings at our South African and Dubai sites where however new
projects in the second half of the year should lead to a recovery.
At 843, the number of employees in the Group as of 30 June 2006
remains almost unchanged compared with the number employed as of 31
December 2005 (842) but has increased compared with the number
employed as of 30 June 2005 (821 employees).
The financial result of EUR -647.6 thousand represented a slight
increase on the prior year (EUR 613.3 thousand). Increased interest
expenditure, arising in particular from the issuing of a corporate
bond at the end of April 2006, compares with higher income from
Earnings before tax for the first half of 2006 amounted to EUR 2,379
thousand compared to a prior year value of EUR 15 thousand. Profit
after tax improved from EUR 137 thousand to EUR 1,661 thousand. The
overall tax ratio for the first half of the year therefore amounted
Following the issuing of the bond and the increase in the volume of
business, the balance sheet total rose from EUR 144.4 million to EUR
165.8 million. Group equity (including minority shares) increased
from EUR 41.2 million, as of 31 December 2005, to EUR 42.4 million.
The equity ratio, on the other hand, declined from 28.5% to 25.6 %
due to the balance sheet extension.
The cash flow from operating activities improved by EUR 8.1 million
compared with the first half of 2005. Liquid assets increased from
EUR 7.4 million on 30 June 2005 to EUR 23 million as of the end of
the first half of this year.
The first half of the year represents a solid basis for the continued
positive development of the Group in the current year. The CHRIST
Group management team expects the second half of the year to continue
in a similarly successful vein. We expect Group sales to exceed EUR
200 million in the 2006 financial year accompanied by a further
improvement in the EBIT margins compared with the prior year.
The appointment of Harald Wegscheider as CFO reflects management's
approach to the further planned growth of the CHRIST Group.
The development of new products for core components will be
Further, to complement organic growth, strategically reasonable
acquisition opportunities are being considered.
@@start.t3@@end of announcement euro adhoc 18.08.2006 07:30:00
ots Originaltext: CHRIST WATER TECHNOLOGY AG
Im Internet recherchierbar: http://www.presseportal.de
Further inquiry note:
Christ Water Technology AG
Tel.: +43 6232 5011-1113
Index: WBI, ATX Prime
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