Imtech: Sound operational performance in the fourth quarter 2013, significant valuation allowances in Germany
February 03 2014 - 1:00AM
· Revenue and order intake solid in
2013
· Good improvement operational EBITDA margin in Q4 2013,
excluding Germany
· Good cash collection leads to debt reduction of 91 million
euro in Q4 to 745 million euro
· Detailed action plan to resolve German legacy issues,
valuation allowances of 200-230 million euro, contributing to a
substantial loss for 2013.
Royal Imtech provides a preliminary view of its
performance for the fourth quarter 2013 based on unaudited figures.
Final audited annual figures 2013 are scheduled for publication on
March 18, 2014.
Gerard van de Aast, CEO of Royal Imtech: "The performance of our
business, excluding Germany, has improved markedly in the fourth
quarter with good improvement of operational EBITDA margin and good
cash collection leading to a substantial debt reduction. Our German
business has not yet improved in the fourth quarter but with the
"Neue Imtech" program and accelerated closure of legacy issues we
have taken important steps in our recovery."
Sound operational improvement Q4
2013
Revenue and order intake in Q4 2013 was solid. For the year as a
whole, Imtech expects revenue, excluding our divested Turkish
business, to be around 4.9 billion euro and order intake to be
around 100% of revenue. The good improvement of operational EBITDA
margin, excluding Germany, in the quarter was positively helped by
the impact of management upgrades and the completed headcount
reduction programs. The net interest-bearing debt by year-end
amounted to 745 million euro down from 836 million euro at the end
of the third quarter. Headcount and financial restructuring related
cash-out for the quarter amounted to 55 million euro. The good net
debt reduction is the result of focus on cash collection from work
in progress and trade receivables. All businesses, including
Germany, contributed to this good result.
German recovery program "Neue
Imtech"
The German recovery program "Neue Imtech" is in full progress and
prioritizes healthy project margins over volume and focusses on
efficiencies in staffing, project control and purchasing. During
the last quarter, this program has put special emphasis on cost
savings and cash generation. The headcount reduction program 2013
in both Germany and Eastern Europe is completed. The improvement
and acceleration of the invoicing and cash collection processes
resulted in a significant and encouraging contribution to the
reduction of the group's net interest-bearing debt at year-end.
Revenue in Germany & Eastern Europe in 2013 will amount to
approximately 960 million euro, with new order intake around 820
million euro. The operational EBITDA margin in Germany did not yet
improve in the fourth quarter 2013, compared to the first nine
months, but will benefit from the cost savings and the "Neue
Imtech" program going forward. Market conditions in Germany remain
favourable and our market position based on our strong technical
competences continues to be solid. Full details on the "Neue
Imtech" program will be presented at the annual results publication
on March 18th 2014.
Detailed action plan to conclude legacy
issues in execution
As announced on 20 December 2013, "Neue Imtech" also contains a
detailed action plan to accelerate the conclusion of legacy issues.
Further assessment by new management in Germany, based on a
different approach by prioritising closure of these issues and
cash-in, lead to progressive insight. These legacy issues represent
mainly unresolved historic issues with customers that were
previously reported in overdue trade receivables or work in
progress. Typically these legacy issues relate to projects that
were contracted before 2013, are by now or soon will be completed,
but not yet settled with the customers. Resolution of these legacy
issues will deliver cash-in, but will also result in a non-cash
valuation allowance when full book value is not recoverable.
Non-cash valuation allowances of 200-230 million euro will be
included in the results 2013. Of this amount, circa 20 million euro
originates outside Germany. At year-end the remaining total amount
of legacy issues on the balance sheet will amount to a range of
65-95 million euro. A dedicated team at Imtech will resolve these
legacy issues in a pragmatic and optimized manner. The vast
majority of these legacy issues does not have a direct relation to
current operations. The company will report separately on these
legacy issues going forward.
Restructuring update 2013
The headcount reduction program 2013 as announced on November 7th
2013, has been finalised. Total headcount reduction for 2013
amounted to 2,300 FTE at a total costs of 105 million euro.
Previous indication was a reduction of 1,950 FTE for 90 million
euro. The increased number and amount is mainly related to Germany.
Excluding Turkey, total headcount will amount to approximately
26,000 FTE at the end of 2013. For 2014, the earlier announced
extra headcount reduction in Germany of 300 FTE will be implemented
in the first half of 2014 for approximately 15 million euro. The
financial restructuring charges in 2013 amounted to 110 million
euro, as previously announced.
Analysts' conference call 3 February 2014,
live transmission via Internet (webcast)
From 9.30 hrs. (CET) an analysts' conference call will be held.
This analysts' call will be transmitted live via the Internet
(www.imtech.com) from 9.30 hrs. (CET) and after this time will also
be available on the website.
More information
Media: |
Analysts & investors: |
Dorien
Wietsma
Director Corporate Communication & CSR
T: +31 182 54 35 53
E: dorien.wietsma@imtech.com
www.imtech.com |
Jeroen
Leenaers
Director Investor Relations
T: +31 182 54 35 04
E: jeroen.leenaers@imtech.com
www.imtech.com |
Imtech
profile
Royal Imtech N.V. is a European technical
services provider in the fields of electrical solutions, ICT and
mechanical solutions. With approximately 26,000 employees, Imtech
is active in the buildings and industry markets in the Netherlands,
Belgium, Luxembourg, Germany, Austria, Eastern Europe, Sweden,
Norway, Finland, the UK, Ireland and Spain, the European markets of
ICT and Traffic as well as in the global marine market. In total
Imtech serves 24,000 customers. Imtech offers integrated and
multidisciplinary total solutions that lead to better business
processes and more efficiency for customers and the customers they,
in their turn, serve. Imtech also offers solutions that contribute
towards a sustainable society - for example, in the areas of
energy, the environment, water and traffic. Imtech shares are
listed on the NYSE Euronext Amsterdam, where Imtech is included in
the AEX Index.
PDF: Press Release
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Source: Imtech via Globenewswire
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