TIDMHSN
Edegem/Antwerp, Belgium - London, UK - 27 January 2011 - Hansen Transmissions
International NV ("Hansen", "the Group" or "the Company") today announces its
Interim Management Statement for the 3 months ended 31 December 2010.
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 31 December 2010 are the same as
those followed in the consolidated annual accounts as per 31 March 2010. 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 - THIRD QUARTER FY 2011
* Pro forma1 revenue for the Group - Continued and Discontinued Operations2 -
is 108 million EUR compared to 137 million EUR for the same period last year
* Pro forma EBITDA3 for the Group - Continued and Discontinued Operations - is
10.4 million EUR, a margin of 9.7%
* Pro forma Net Financial Debt4 for the Group at 84 million EUR on 31 December
2010, reduced from 129 million EUR on 31 March 2010. Consolidated Net
Senior Debt stood at 2.2x Consolidated EBITDA, well within the covenant
level of 3.25x for the period
* Hansen reiterates its earlier guidance, with revenue from Continued and
Discontinued Operations for the current financial year expected to decrease
in aggregate by approximately 10% from the level achieved for the financial
year 2010
* As from 31 December 2010, Hansen's industrial gearbox division is recorded
as discontinued operations. The results for the third quarter for wind
gearbox activities (the "Continuing Group") are:
* Revenue of 87 million EUR compared to 117 million EUR for the same
period last year
* EBITDA for the Continuing Group 8.4 million EUR - margin of 9.6%
1 Pro forma includes wind gearbox business (the "Continuing Group") and
industrial gearbox business (which is classified as "Discontinued" as from 31
December 2010)
2 Continued and Discontinued Operations includes wind gearbox business and
industrial gearbox business
3 EBITDA = earnings before interest, tax, depreciation & amortization
4 Net Financial Debt = calculated as long- & short-term financial debts minus
cash & cash equivalents
Alex De Ryck, CEO of Hansen commented: "Many of the challenges that have
affected our sector over the past quarters are still present. Whilst economic
conditions are starting to slowly improve, government subsidies and third party
financing for the wind industry remain impacted by the economic environment and
the regulatory support for the wind sector globally continues to be uncertain.
In particular, the European and US wind markets are still working through the
impact of these issues. However, the Chinese and Indian wind markets are
projected to continue their growth path, reinforced by the economic growth in
their domestic markets and strong governmental incentives and support in their
respective regions. Hansen remains well placed in these growth markets with a
growing product portfolio.
Through the proposed divestment of our industrial gearbox business, we emphasize
the focus for Hansen as a pure wind energy business. This important step
strengthens the Company's position for the next growth cycle in renewable
energy."
HANSEN TRADING UPDATE
Note: Pro forma includes wind gearbox business (the "Continuing Group") and
industrial gearbox business (industrial gearboxes business is classified as
"Discontinued" as from 31 December 2010).
TABLE 1. Pro Forma - Continued and Discontinued Combined
For the 3 |% change| For the 3 | |For the 9 | %|For the 9 |
months| | months| | months| change| months|
ended| | ended| | ended| | ended|
| | | | | | |
31 December| |31 December| | 31 | | 31 |
2010| | 2009| | December| | December|
| | | | 2010| | 2009|
| | | | | | |
Unaudited| | Unaudited| | Unaudited| | Unaudited|
=-------------------------+--------+-----------+-+----------+-------+----------+
(EUR000)| | (EUR000)| | (EUR000)| | (EUR000)|
| | | | | | |
| | | | | | |
| | | | | | |
Revenue 107,917| (21%)| 136,614| | 346,778| (18%)| 422,560|
=-------------------------+--------+-----------+-+----------+-------+----------+
| | | | | | |
| | | | | | |
EBITDA1 10,440| (22%)| 13,448| | 33,234| 9%| 30,543|
| | | | | | |
Ebitda Margin 9.7%| | 9.8%| | 9.6%| | 7.2%|
| | | | | | |
| | | | | | |
| | | | | | |
Depreciation & | | | | | | |
amortization 11,929| 3%| 11,585| | 36,299| 17%| 30,980|
| | | | | | |
| | | | | | |
| | | | | | |
EBIT2 (1,489)| -| 1,863| | (3,065)| -| (437)|
| | | | | | |
Ebit Margin (1.4%)| -| 1.4%| | (0.9%)| | (0.1%)|
As at | As at |
The Group, 31 December 2010 | 31 March |
Continued and Discontinued Combined | 2010 |
| |
Unaudited | |
-------------------+----------+
(EUR000) | (EUR000) |
| |
Net working capital 139,666 | 178,566 |
=-------------------------------------------------------+----------+
Net Financial Debt3 84,496 | 128,798 |
=-------------------------------------------------------+----------+
TABLE 2. Continuing Group - Wind gearbox business
For the 3 |% change| For the 3 | |For the 9 | %|For the 9 |
months| | months| | months| change| months|
ended| | ended| | ended| | ended|
| | | | | | |
31 December| |31 December| | 31 | | 31 |
2010| | 2009| | December| | December|
| | | | 2010| | 2009|
| | | | | | |
Unaudited| | Unaudited| | Unaudited| | Unaudited|
=-------------------------+--------+-----------+-+----------+-------+----------+
(EUR000)| | (EUR000)| | (EUR000)| | (EUR000)|
| | | | | | |
| | | | | | |
| | | | | | |
Revenue 87,040| (26%)| 117,467| | 284,462| (22%)| 362,591|
=-------------------------+--------+-----------+-+----------+-------+----------+
| | | | | | |
| | | | | | |
EBITDA1 8,354| (44%)| 14,835| | 27,515| (13%)| 31,674|
| | | | | | |
Ebitda Margin 9.6%| | 12.6%| | 9.7%| | 8.7%|
| | | | | | |
| | | | | | |
| | | | | | |
Depreciation & | | | | | | |
amortization 11,135| 6%| 10,473| | 33,633| 21%| 27,694|
| | | | | | |
| | | | | | |
| | | | | | |
EBIT2 (2,781)| -| 4,362| | (6,118)| -| 3,980|
| | | | | | |
Ebit Margin (3.2%)| | 3.7%| | (2.2%)| | 1.1%|
1 EBITDA = earnings before interest, tax, depreciation & amortization
2 EBIT = EBITDA after depreciation & amortization
3 Net Financial Debt = calculated as long- & short-term financial debts minus
cash & cash equivalents
REVENUE - CONTINUING GROUP
During the third quarter of financial year 2011, the reported revenue for the
Continuing Group - wind gearboxes - decreased by 26% compared to the third
quarter of the previous financial year. For the nine month period ended 31
December 2010, revenue of wind gearboxes decreased to 284 million EUR, a
decrease of 22% compared to the same period in the previous financial year.
This revenue decrease was mainly due to a reallocation of scheduled deliveries
in wind turbine gearboxes. With an ongoing dialogue with customers, Hansen works
with its customers to manage their requirements in line with the current
operating and credit environment.
Hansen has been flexible with volumes during Q3 of the financial year 2011, in
line with customer requirements. Based on this rescheduling and the ongoing
discussions with customers, the Company expects a stronger 4th quarter for the
current financial year.
EBITDA MARGIN - CONTINUING GROUP
As a result of lower volumes and the associated under-absorption of the fixed
costs base, the EBITDA margin declined to 9.6% of revenue in Q3 of the financial
year 2011, compared to 12.6% for the same period the previous year.
Upon completion of the proposed disposal of the industrial gearbox division to
Sumitomo Heavy Industries the annual wind gearbox capacity of the Continuing
Group will be reduced by approximately 13 per cent - from currently 8,700 MW to
7,600 MW, thereby reducing the financial impact of the current overcapacity in
the business.
Such capacity reduction would have reduced the cost base of the Continuing Group
for the first half of financial year 2011 by approximately 4 million EUR,
comprising a reduction in cost of sales of approximately 3 million EUR and a
reduction in administrative expenses of approximately 1 million EUR. The
aggregate 4 million EUR cost reduction includes approximately 1 million EUR of
depreciation.
From a financial perspective, the proposed disposal of industrial gearbox
business will strengthen the financial structure of the Continuing Group, which
will further improve its financial flexibility. In addition, the reduction of
the Continuing Group's overall indebtedness will reduce financing costs. Such
debt reduction would have reduced the financing costs of the Company for the six
month period of the first half of financial year 2011 by approximately 2 million
EUR.
BALANCE SHEET - PRO FORMA FOR THE GROUP - CONTINUED AND DISCONTINUED OPERATIONS
On 31 December 2010, the Group - Continued and Discontinued Operations - had a
net financial debt position of 84 million EUR, calculated as long-term and
short-term financial debts minus cash and cash equivalents.
The Consolidated Net Senior Debt to Consolidated EBITDA ratio for the Group was
2.2 times at 31 December 2010, well within the covenant limit of 3.25 times for
that period.
PROPOSED DISPOSAL OF HANSEN INDUSTRIAL TRANSMISSIONS NV
On 15 October 2010, the Company announced that it had received an offer for its
industrial gearbox division from Sumitomo Heavy Industries, Ltd. ("Sumitomo
HI"). On 20 December 2010, following successful completion of an employee
information and consultation procedure, the Company entered into a conditional
sale and purchase agreement to dispose of the entire issued share capital of
Hansen Industrial Transmissions NV to Sumitomo HI.
Further to the announcement of 20 December 2010, the Company expects to post a
circular to its shareholders later today containing a notice convening a general
meeting of the Company (the "Circular").
The general meeting is to be held at Hotel Ter Elst, Ter Elststraat 310, 2650
Edegem, Belgium at 11 am CET on 23 February 2011 (the "General Meeting").
APPOINTMENT OF VICE CHAIRMAN OF THE BOARD
The Company announces that the Board of Directors has appointed Bjerres Bureau
Aps, represented by its permanent representative Mr. Torben Bjerre-Madsen, as
Vice Chairman of the Board, in accordance with article 17 of Hansen's Articles
of Association. The Vice Chairman can preside over the meetings of the Board of
Directors in the absence of the Chairman and supports the Chairman on a range of
tasks. Mrs. Jann Brown continues to hold the role of senior non-executive,
independent Director of the Board.
Torben Bjerre-Madsen joined the Group in 2005 as an independent, non-executive
member of the Board of Directors and chairs the Audit Committee of Hansen. Prior
to joining the Group, he held positions as the Chief Executive Officer of Neg
Micon A/S, Deputy Chief Executive Officer of Vestas Wind Systems A/S, and Chief
Financial Officer of Crisplant Industries A/S. Alongside his current position at
the Company, he acts as a non-executive Director of a number of international
companies, among them VKR Holding A/S and Viking Life Saving Equipment A/S, and
is also Chairman of a number of companies in the renewable energy sector
including Avanti Wind Systems A/S, SolarCap A/S and MAKE Consulting A/S.
OUTLOOK
As previously indicated, Hansen believes the operating environment will remain
challenging with limited short term visibility and continued volatility in the
order scheduling by our customer base, in line with the end demand for turbines.
Reflecting this challenging trading environment, the Company reconfirms its
previous guidance for revenue from Continued and Discontinued Operations to
decrease by approximately 10% for the current financial year.
Following the classification of the industrial gearbox business as Discontinued
Operations as from 31 December 2010, the Company has now also allocated guidance
for revenues for the financial year 2011 for both business activities:
approximately -15% revenue decrease for the Continuing Group (wind gearboxes)
and approximately +10% growth for Discontinued Operations (industrial
gearboxes).
The Company continues to focus on ongoing cost reduction measures, production
optimization and capacity utilization measures to reduce the overall impact on
profitability of the reduced output levels.
ANALYST AND INVESTOR CONFERENCE CALL
Hansen will host an Analyst and Investor meeting on the Q3 Interim Management
Statement for financial year 2011
With: Alex De Ryck, CEO
Jan Willem Ruinemans, CFO
On: Thursday 27 January 2011 - 09:00 am UK Time
At: KBC
Meeting Rooms 16 & 17
111 Old Broad Street
London
EC2N 1BR
Dial in details:
Dial-in number: +44 (0)20 3140 0668
Pass code: 354664#
A replay of this analyst presentation will be available on the Investor
Relations sections of Hansen's website as from Thursday evening of 27 January
2011 on http://ir.hansentransmissions.com/ir/results/results_announcements.
For further information, please contact:
+--------------------------------------------------------+
| Hansen Transmissions International NV |
| |
| Investor Relations |
+--------------------------------------+-----------------+
| Hans Ooms | +32 3 450 58 62 |
| De Villermontstraat 9 | |
| 2550 Kontich - Belgium | |
| hans.ooms.ir@hansentransmissions.com | |
| http://ir.hansentransmissions.com/ | |
+--------------------------------------+-----------------+
+---------------------------------------------+
| Investors & Analysts |
| |
| Maitland |
+--------------------------+------------------+
| Sarah Hamilton | +44 20 7395 0464 |
| shamilton@maitland.co.uk | +44 7836 295 291 |
| | |
| Dan Yea | +44 20 7395 0422 |
| dyea@maitland.co.uk | +44 7595 270 691 |
+--------------------------+------------------+
Financial Calendar - Hansen
FINANCIAL YEAR 2011
12 months period ending 31 March 2011
+--------------------------------------+---------------------------------------+
|26 July 2010 |Interim StatementQ3 2011 Results |
+--------------------------------------+---------------------------------------+
|28 October 2010 |Press Release 1H 2011 Results |
+--------------------------------------+---------------------------------------+
|27 January 2011 |- Interim statement Q3 2011 |
| |Results |
| |- Publication of Class I Circular |
+--------------------------------------+---------------------------------------+
|23 February 2011 |Special Shareholders' Meeting |
+--------------------------------------+---------------------------------------+
|19 May 2011 (*) |Press Release Annual results FY 2011 |
+--------------------------------------+---------------------------------------+
|31 May 2011 (*) |Annual Financial Report FY 2011 |
+--------------------------------------+---------------------------------------+
|30 June 2011 |ASM FY 2011 |
+--------------------------------------+---------------------------------------+
(*) 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 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. Hansen has
currently wind turbine gearbox manufacturing capabilities of 8,700 MW per annum.
Strong in-house R&D operations maintain Hansen's technological leadership and
the Company employs approximately 2,000 people worldwide.
http://www.hansentransmissions.com/en/
http://ir.hansentransmissions.com/
About Hansen Industrial Transmissions
Hansen Industrial Transmissions is a global industrial gearbox designer,
manufacturer and supplier. The company supplies for a wide range of industrial
applications throughout the world and has an established dedicated international
service network. Hansen Industrial Transmissions operates a manufacturing
facility and services centre located in Flanders, Belgium as well as assembly
centres in Australia, Brazil, China, South Africa, the UK and the US. HIT
employs 730 people worldwide as at the end of 2010.
Merrill Lynch International ("Bank of America Merrill Lynch") has been engaged
to provide financial advice to the Board of Directors in relation to the
proposed disposal of the industrial gearbox division to Sumitomo Heavy
Industries. Bank of America Merrill Lynch is acting exclusively for Hansen and
no one else and will not be responsible to anyone other than Hansen for
providing the protections afforded to clients of Bank of America Merrill Lynch
or for providing advice in relation to the proposed transaction.
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.
Neither the content of the Company's website nor the content of any other
website accessible from hyperlinks on the Company's website is incorporated
into, or forms part of, this announcement.
#
Press Release (PDF):
http://hugin.info/139494/R/1482790/418105.pdf
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Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Hansen Transmissions International NV via Thomson Reuters ONE
[HUG#1482790]
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