Hansen Transmissions - Interim Management Statement for the first quarter of financial year 2010
July 29 2009 - 2:11AM
UK Regulatory
TIDMHSN
Edegem/Antwerp, Belgium - London, UK - 29 July 2009 Hansen
Transmissions International NV ("Hansen", "the Group" or "the
Company") today announces its Interim Management Statement for the 3
months ended 30 June 2009. The financial information reported in this
release is presented in EURO and has been prepared in accordance with
the recognition and measurement criteria of IFRS as adopted by the
European Union. The accounting policies and methods of computation
followed for the 3 months ended 30 June 2009 are the same as those
followed in the consolidated annual accounts as per 31 March 2009.
The financial information in this release is unaudited; the statutory
auditor has conducted a limited review for the period. The interim
report is in compliance with IAS 34.
HIGHLIGHTS Q1 2010
* Revenue 136 million EUR compared to 139 million EUR for the same
period in the previous year
* Underutilized capacity has brought EBITDA margin down to 5.2 %
compared to 15.5% for the same period in the previous year
* Several cost containment measures are being implemented to maintain
flexibility, align the cost structure and support EBITDA margin and
cash flow
* First success in China with order for domestic wind turbine
manufacturer
* Adjustment of current year's guidance - from previously low to
moderate revenue growth - to flat revenue for the full financial
year 2010
* The Company remains confident about the long term dynamics of the
wind industry
Ivan Brems, CEO of Hansen Transmissions commented:
"In this first quarter, we experienced the dual effect of the current
credit environment on our business: first, customers in the wind
industry reviewed their requirements for gearboxes as a result of
lower turbine orders; secondly, customers reduced their inventory
levels in order to manage their working capital situation.
At current output levels Hansen is faced with idle capacity for the
first time in recent years, and this inevitably has had an impact on
our profitability. While operating conditions are likely to remain
challenging, we are actively pursuing cost containment measures in
order to align our cost structure to the current environment and
support EBITDA margin and cash flow.
Although the current market conditions do not support the efficient
utilization of the recently added manufacturing capacity, we expect
this situation to ease in the second half of this financial year as a
result of improved market dynamics, and we will be able to ramp up
production rapidly thereby benefiting from the recent expansion of
our capacity. We remain confident about the long term dynamics for
the wind industry. As one of the most efficient and high quality
manufacturers of one of the key components for that industry we are
well positioned for the future."
SUMMARY
The Group's results for the first quarter of the financial year 2010
were significantly impacted by lower than expected volumes.
When reviewing the current interim management statement it should be
noted that since the start of the previous financial year, in line
with the strategy outlined at the IPO, Hansen has added manufacturing
capacity both in India and China, resulting in a higher overall cost
base.
HANSEN TRADING UPDATE
+---------------------------------------------------------------+
| Hansen Group | For the three months | % | For the three |
| Consolidated | ended | change | months |
| in EUR 000 | 30 June 2009 | | ended |
| | Unaudited | | 30 June 2008 |
| | | | Unaudited |
|--------------+-----------------------+--------+---------------|
| Revenue | 136,261 | -2% | 139,391 |
|--------------+-----------------------+--------+---------------|
| EBITDA (1) | 7,136 | -67% | 21,593 |
|--------------+-----------------------+--------+---------------|
| Margin | 5.2% | - | 15.5% |
|--------------+-----------------------+--------+---------------|
| Depreciation | 9,213 | +43% | 6,423 |
|--------------+-----------------------+--------+---------------|
| EBIT (2) | -2,077 | - | 15,170 |
|--------------+-----------------------+--------+---------------|
| Margin | -1.5% | - | 10.9% |
+---------------------------------------------------------------+
+--------------------------------------------------------+
| | as at | as at |
| | 30 June 2009 | 31 March 2009 |
|------------------------+--------------+----------------|
| Net Working Capital | 304,620 | 222,217 |
|------------------------+--------------+----------------|
| Net Financial Debt (3) | 225,760 | 124,106 |
+--------------------------------------------------------+
(1) EBITDA = earnings before interest, tax, depreciation &
amortisation
(2) EBIT = EBITDA after depreciation & amortisation
(3) Net Financial Debt = calculated as cash & cash-equivalents minus
long- & short-term financial debts.
REVENUES
Revenue decreased by 2% in the first quarter of the financial year
2010 compared to the same quarter last year. This decrease is
entirely in the sales of wind turbine gearboxes.
In the first quarter of the current financial year, the Company
experienced further reduction of scheduled deliveries of wind turbine
gearboxes with Hansen working with customers to manage their
requirements in line with the current operating and credit
environment
Recently, the Company accomplished a first success in the Chinese
wind market with a new contract for a domestic turbine manufacturer.
The agreement covers the delivery of prototypes of multi MW gearboxes
before December 2009 and the delivery of serial products as from
calendar 2010. Hansen believes this contract underlines the
increasing awareness in the growing Chinese wind market in favour of
high quality gearboxes.
EBITDA MARGIN
With revenue approximately stable, the Company's fixed cost
absorption rate of overheads deteriorated. The lower profitability
for the quarter is due to the lower capacity utilization. Two new
wind gearbox factories were built in India and China, resulting in
additional depreciation, fixed operational and general administrative
costs.
MEASURES TO REDUCE THE COST BASE AND IMPROVE CASH FLOW
In order to maintain flexibility, align its cost structure to the
current environment and support its EBITDA margins and cash flow,
Hansen continues to actively pursue cost containment measures,
including:
* Supply chain costs optimization;
* Temporary unemployment for blue collar employees (under Belgian
legislation);
* Savings programmes on general expenses; and
* Inventory reduction.
In addition, the Company is aligning its white collar workforce to
the economic reality, resulting in a potential white collar headcount
reduction in Belgium of approximately 15%. The consultation procedure
with the Union representatives in Belgium has started on 15 May 2009
and is expected to be finalized in August 2009.
The full effect of these cost containment measures on recurring
margins is expected as from the third quarter of the current
financial year and additionally the Company will continue to explore
and exploit further cost reduction opportunities.
ONE-TIME COSTS
In the first quarter of the financial year 2010, the Company incurred
one-time costs of EUR 0.8 million relating to expansion projects.
These costs are included in EBITDA and EBIT.
WORKING CAPITAL
The increase in working capital in the first quarter of the financial
year 2010 is mainly driven by a decline in trade payables. Given the
current short term outlook and the Company's initiatives to improve
working capital levels, the Company has started to reduce its
inventory levels, which has resulted in lower purchasing volumes.
Inventory levels have started to decrease since 31 March 2009 and are
expected to decrease further over the coming quarters.
Accounts receivables have further increased since 31 March 2009
caused by overdue customer payments. The Company has several
arrangements in place with customers to address this situation.
The Company's cash levels remain solid. The reduced sales volumes,
the overdue customer payments and the reduction of trade payables
have resulted in a higher than expected net debt situation which is
anticipated to reduce over the coming quarters.
SHAREHOLDER STRUCTURE
The Company has put in place certain arrangements in response to the
announcement made by Suzlon Energy Limited on 15 June 2009 that it is
evaluating alternatives regarding its shareholding in Hansen and that
this may or may not lead to Suzlon disposing of some or all of its
stake in Hansen to a third party.
These arrangements include the constitution of an Independent
Committee of the Board of Directors and the appointment of Goldman
Sachs International and Bank of America Merrill Lynch as its
financial advisers.
OUTLOOK
The Company remains confident in the projected medium and long term
growth prospects of the international wind power market. Hansen's
strong product offering and the quality of its customer base ensure
that the Company remains well positioned in this market.
Given the continued impact of the adverse credit environment on the
wind turbine industry the Company has adjusted its financial year's
guidance - from previously low to moderate revenue growth - to flat
revenue for the full financial year 2010.
The current market conditions do not support the efficient
utilization of the manufacturing capacity, and the Company expects
these conditions to continue during the second quarter. The Company
anticipates that this situation will ease in the second half of this
financial year as a result of improved market dynamics.
ANALYST AND INVESTOR CONFERENCE CALL
Hansen will host an Analyst and Investor meeting on the Q1 Interim
Management Statement
With: Ivan Brems, CEO and Alex De Ryck, CFO
On: Wednesday, 29 July 2009 at 11.00 am UK time
In: Merrill Lynch Financial Centre
2 King Edward Street,
London EC1A 1HQ
A dial-in facility is available on:
UK Direct dial-in number: 0208 996
3920
International direct dial-in number +44 208
996 3920
Pincode: 526 193#
A replay will be available on Hansen's website on the same day:
http://www.hansentransmissions.com/en/reports_publications.html
For further information, please contact
Hansen Transmissions International NV
Investor Relations +32 3
Hans Ooms 450
De Villermonstraat 9 58 62
2550 Kontich - Belgium
hans.ooms.ir@hansentransmissions.com
http://www.hansentransmissions.com/en/reports_publications.html
M:Communications
Eleanor Williamson +44 20 7153 1539
Williamson@mcomgroup.com
Financial Calendar - Hansen
FINANCIAL YEAR 2010
12 months period ending 31 March
2010
29 July 2009 Interim statement Q1 2010 Results
26 October 2009 (*) Press Release 1H 2010 Results
28 January 2010 (*) Interim statement Q3 2010 Results
17 May 2010 (*) Press Release FY 2010 Results
Annual Shareholders' Meeting FY
24 June 2010 2010
(*) dates subject to final
confirmation
About Hansen Transmissions
Hansen Transmissions International NV is an established global wind
turbine gearbox and industrial gearbox designer, manufacturer and
supplier, with a leading position (by MW supplied) in the wind
turbine gearbox market. The Company supplies gearboxes to four of the
five largest manufacturers of gear-driven wind turbines globally and
provides durable gear drives for a wide range of industrial
applications throughout the world. Hansen plans to increase its wind
turbine gearbox manufacturing capabilities, from 3,800 MW per annum
in the financial year 2007 to 14,300 W, by financial year 2012. In
addition to its principal manufacturing facilities in Belgium -
comprising a wind turbine and industrial gearbox plant in Edegem
(Antwerp) and a fully integrated state-of-the-art dedicated wind
turbine gearbox manufacturing facility in Lommel (Limburg) - Hansen
has a +95.000m² production plant in Coimbatore, India and has started
the construction, in September 2008, of a production plant for wind
turbine gearboxes for the Chinese market on a 250,000 m² site in the
Beichen Hi-tech Industrial park in Tianjin. Hansen has strong
research and development operations to maintain its technological
leadership and employs over 2,400 people worldwide
http://www.hansentransmissions.com/en/
http://www.hansentransmissions.com/en/investorrelations.html
Forward Looking Statements
This press release may include statements that are "forward-looking
statements". In some cases, these forward-looking statements can be
identified by the use of forward-looking terminology, including the
terms "believes", "estimates", "forecasts", "plans", "prepares",
"projects", "anticipates", "expects", "intends", "may", "will",
"should" or other similar words. Forward-looking statements may
include, without limitation, those regarding Hansen's financial
position, business strategy, plans and objectives of management for
future operations (including development plans and objectives
relating to Hansen's products) and the wind turbine and gearbox
markets. Such forward-looking statements involve known and unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements of Hansen, or industry results,
to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements.
Such forward looking statements are based on numerous assumptions
regarding Hansen's present and future business strategies and the
environment in which Hansen will operate in the future. These forward
looking statements speak only as of the date of this press release.
Hansen expressly disclaims any obligation or undertaking to release
publicly any updates or revisions to any forward-looking statement
contained herein to reflect any change in Hansen's expectations with
regard thereto or any change in events, conditions or circumstances
on which any such statement is based.
Financial advisers
Each of Goldman Sachs International and Merrill Lynch International
(a subsidiary of Bank of America Corporation) is acting exclusively
for Hansen and no one else solely in connection with the matters
referred to in the section entitled "Shareholder Structure" and will
not be responsible to anyone other than Hansen for providing the
protections afforded to clients of Goldman Sachs International or
Merrill Lynch International (as the case may be) or for providing
advice in relation to any matters referred to in this announcement.
#
=--END OF MESSAGE---
http://hugin.info/139494/R/1331336/314962.pdf
This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.
Hansen Tran. (LSE:HSN)
Historical Stock Chart
From Jun 2024 to Jul 2024
Hansen Tran. (LSE:HSN)
Historical Stock Chart
From Jul 2023 to Jul 2024
