Hansen Transmissions International NV - Interim Management Statement for the third quarter of financial year 2010
January 28 2010 - 2:15AM
UK Regulatory
TIDMHSN
Edegem/Antwerp, Belgium - London, UK - 28 January 2010 Hansen Transmissions
International NV ("Hansen", "the Group" or "the Company") today announces its
Interim Management Statement for the 3 months ended 31 December 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 9 months ended 31 December 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 Q3 FY 2010
* Revenue 136.6 million EUR compared to 155.4 million EUR for the same period
in the previous year
* EBITDA1 margin 9.8%, up from 6.7% in Q2 and from 5.2% in Q1 of the current
financial year 2010
* Challenges in the near-term wind market continue to cause volume and pricing
pressure, and this has been reflected in our recent change to guidance
* In the short term, the Company remains focused on building on its successful
cost reduction measures to mitigate the impact on profitability resulting
from the current operating environment
* Communication of refocused Hansen's strategy to drive value in the medium to
longer term
* Free float increased to 74% following the secondary placing of 236 million
depositary interests by Suzlon on 19 November 2009
1 EBITDA = earnings before interest, tax, depreciation & amortisation
Ivan Brems, CEO of Hansen commented:
"Hansen continues to be confronted with considerable volatility and challenges
from the global wind energy market. During the third quarter of financial year
2010, this trend has not changed. While the results over this period were in
line with the Company's expectations, we believe that the operating environment
for the Company will remain challenging for at least the next two quarters.
Although the order book has seen significant rescheduling, the ongoing dialogue
with our customers continues to suggest some optimism for improving industry
investment from the second half of the 2010 calendar year."
HANSEN TRADING UPDATE
| | | | | | |
Hansen Group For the 3 |% change|For the 3 | |For the 9 | %|For the 9 |
Consolidated months| | months| | months| change| months|
ended | | ended | | ended | | ended |
| | | | | | |
31 December| | 31 | | 31 | | 31 |
2009| | December| | December| | December|
| | 2008| | 2009| | 2008|
| | | | | | |
Unaudited| | Unaudited| | Unaudited| | Unaudited|
=--------------------------+--------+----------+ +----------+-------+----------+
(EUR000)| | (EUR000)| | (EUR000)| | (EUR000)|
| | | | | | |
| | | | | | |
| | | | | | |
Revenue 136,614| (12%)| 155,374| | 422,560| (6%)| 450,602|
=--------------------------+--------+----------+ +----------+-------+----------+
| | | | | | |
| | | | | | |
EBITDA1 13,448| (33%)| 20,119| | 30,543| (54%)| 66,338|
| | | | | | |
Margin 9.8%| | 12.9%| | 7.2%| | 14.7%|
| | | | | | |
Depreciation & | | | | | | |
amortization 11,585| 52%| 7,611| | 30,980| 47%| 21,041|
| | | | | | |
EBIT2 1,863| (85%)| 12,508| | (437)| -| 45,297|
| | | | | | |
Margin 1.4%| | 8.1%| | (0.1%)| | 10.1%|
| | | | | | |
| |
As at | As at |
| |
31 December 2009 | 30 September 2009 |
| |
Unaudited | Unaudited |
-------------------+-------------------+
(EUR000) | (EUR000) |
| |
| |
| |
Net working capital 248,193 | 239,029 |
=----------------------------------------+-------------------+
Net Financial Debt3 187,422 | 180,331 |
=----------------------------------------+-------------------+
1 EBITDA = earnings before interest, tax, depreciation & amortisation
2EBIT = EBITDA after depreciation & amortisation
3 Net Financial Debt = calculated as cash & cash-equivalents minus long- &
short-term financial debts
REVENUES
Revenue decreased by 12% in the third quarter of the financial year 2010
compared to the same quarter last year.
This revenue decrease was due to a reduction in scheduled deliveries of both
industrial and wind turbine gearboxes as Hansen worked with customers to manage
their requirements in line with the current operating and credit environment.
EBITDA MARGIN
Improvement to 9.8% EBITDA margin on revenue in Q3, based upon the cost
alignment measures starting to have a positive impact.
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, the Company continues to implement several cost containment measures
including:
* Supply chain optimization;
* Temporary unemployment for blue and white collar employees (under Belgian
legislation);
* A reduction in white collar headcount in Belgium of 6% in September 2009;
* Discontinuing of 120 temporary blue collar contracts in since October 2009
in Belgium;
* Savings programmes on general expenses; and
* Inventory reduction.
The effect of these cost containment measures has positively impacted the EBITDA
margin of 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 third quarter of the financial year 2010, the Company incurred one-time
costs of 0.7 million EUR relating to the expansion projects. These costs are
included in EBITDA and EBIT.
WORKING CAPITAL
Overall net working capital has increased by 9 million EUR in the third quarter.
This reflects a moderate decrease in inventory levels and accounts receivables
balanced by a larger decrease in trade payables as a result of supply chain
management efforts.
The absolute level of accounts receivables is partly caused by overdue payments
from customers. This is being addressed in the context of normal business
practices and contractual arrangements, in light of the current operating
environment.
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 at period end which is anticipated to reduce
over the coming quarters.
SHAREHOLDER STRUCTURE
Hansen noted the announcement made by AE Rotor Holding BV ("AERH") a wholly
owned indirect subsidiary of Suzlon Energy Limited ("Suzlon") on 19 November
2009 regarding the secondary placing of 236 million depository interests in
Hansen (the "Placing"). As a result of the Placing, AERH continues to hold
26.1% of the total depository interests in Hansen, down from 61.3%, and Hansen's
free float increased from 38.7% to 73.9%.
"STRONGER THAN WIND" - refocusing of Hansen's strategy
Hansen has assessed its strategic goals and refocused to drive value in the
medium to longer term.
Hansen reconfirms the target for 14,300 MW manufacturing capacity by financial
year 2013.
Throughout the organization, Hansen defined updated key elements of reaching
this target with a strategic plan that aims for sustainable, profitable growth
with a diversified customer base, state-of-the-art manufacturing facilities in
Europe, India and China supported by a global supply chain and a highly
motivated and skilled workforce.
OUTLOOK
Since early 2009, the volatility and challenges impacting the near term wind
market have been reflected in Hansen's financial results, including the recent
half year Interim Results, where we outlined our caution resulting from the
operating environment.
This trend has continued and Hansen believes the operating environment will
remain challenging for at least the next two quarters, these being the first two
quarters of the 2010 calendar year (reporting quarters Q4 2010 and Q1 2011).
As confirmed in Hansen's trading update published on 20 January 2010, the
revenue guidance for financial year 2010 is for a decrease of approximately 15%
from the level achieved for the financial year 2009.
While the order book has seen significant rescheduling, our ongoing dialogue
with customers continues to suggest some optimism for improving industry
investment from the second half of the 2010 calendar year. We continue to be
well-positioned with our customers and see the issues as predominantly relating
to the wind market as a whole. Our confidence in the medium and longer-term
fundamentals of the wind industry remains.
ANALYST AND INVESTOR CONFERENCE CALL
Hansen will host an Analyst and Investor meeting on the Q3 Interim Management
Statement for financial year 2010
With: Ivan Brems, CEO and Alex De Ryck, CFO
On: Thursday 28 January 2010 - 11 am UK time
At: Peterborough Court,
10th Floor, Room A,
133 Fleet Street,
London,
EC4A 2BB.
Dial-in details: +44 20 8515 2302
Please quote "Hansen Q3 Interim Management Statement" as the event title when
joining the call and state your name and company.
A replay of this analyst presentation will be available on the Investor
Relations section of Hansen's website as from Thursday evening 28 January 2010
on http://www.hansentransmissions.com/en/reports_publications.html
For further information, please contact
+------------------------------------------------------------------------------+
|Hansen Transmissions International NV |
+--------------------------------------------------------------+---------------+
|Investor Relations |+32 3 450 58 62|
|Hans Ooms | |
|De Villermonstraat 9 | |
|2550 Kontich - Belgium | |
|hans.ooms.ir@hansentransmissions.com | |
|<mailto:hans.ooms.ir@hansentransmissions.com> | |
|http://www.hansentransmissions.com/en/reports_publications.htm| |
|l | |
+--------------------------------------------------------------+---------------+
+----------------------------------------------------------------------------+
|M:Communications |
+-----------------------------------------------------------+----------------+
|Eleanor Williamson |+44 20 7920 2339|
|Williamson@mcomgroup.com <mailto: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 |
+--------------------------------------+------------------------------------+
|24 June 2010 |Annual Shareholders' Meeting FY 2010|
+--------------------------------------+------------------------------------+
(*) date 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 the world's major manufacturers of gear-driven
wind turbines and provides durable gear drives for a wide range of industrial
applications throughout the world. Both Hansen's wind energy and industrial
activities have established dedicated international service networks. In
addition to its principal state-of-the-art manufacturing facilities located in
Flanders, Belgium - i.e. a wind turbine and industrial gearbox plant and a fully
integrated, dedicated wind turbine gearbox manufacturing facility - Hansen has a
production plant for wind turbine gearboxes in Coimbatore, India and an assembly
and testing plant for the Chinese market, located in Tianjin, China. As such,
Hansen plans to increase its wind turbine gearbox manufacturing capabilities,
from 7,300 MW per annum in the financial year 2009 to 14,300 MW, by financial
year 2013. Strong in-house R&D operations maintain Hansen's technological
leadership and the company employs over 2,300 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.
#
[HUG#1378026]
Press Release (PDF): http://hugin.info/139494/R/1378026/338761.pdf
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