DGAP-News: BayWa AG / Key word(s): Quarter Results
BayWa AG: Excellent start to 2011 - BayWa delivers positive result in
the first quarter
12.05.2011 / 10:00
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Excellent start to 2011 - BayWa delivers positive result in the first
quarter
BayWa AG has had an excellent start to the financial year 2011: The company
achieved an exceptionally good result in the first quarter, delivering an
EBIT of EUR 5.7 million (Q1/2010: -EUR 13.4 million) in a quarter when
there is normally a deficit due to seasonal influences. The revenues of the
international trading and services group came to EUR 1.96 billion in the
first three months of this year (Q1/2010: EUR 1.53 billion). This is an
increase of 28.5 percent.
The mainstays of this positive development were the results generated by
the Agriculture and Building Materials segments. The exceptionally mild
weather and the stable economic trend enabled revenues and operating profit
to be raised significantly. The mild temperatures in the first quarter and
high oil prices braked demand for heating energy in the Energy segment. The
renewable energies business developed according to plan.
'It is most gratifying that, instead of the seasonally induced negative
EBIT typical of the first quarter, we can report a positive result', was
the comment of Klaus Josef Lutz, Chief Executive Officer of BayWa AG,
expressing his satisfaction with the results achieved.
Even though the first three months are of only limited informative value
for the financial year as a whole due to seasonal influences on BayWa's
course of business and market fluctuations caused by the weather, Lutz
affirmed the positive expectations for the financial year 2011.
'Good foundations have been laid through the results in the first quarter.
The uptrend in April is holding steady', was Lutz's comment on his
optimistic viewpoint, and he added the following: Higher producer prices,
especially from grain, have boosted the sentiment of farmers and their
willingness to make capital investments and buy operating resources.
Although the markets are volatile, the price level is expected to remain
high as experts assume that grain harvests will be average this year. This
would have a positive impact on the Agriculture segment.
The Building Materials segment is likely to grow again on the back of the
improved economic climate and make good the seasonally-induced loss in the
coming months.
According to Lutz, the Energy segment is set to pick up momentum in the
second half of the year only as demand for heating oil slows in the summer
months even if more favourable oil prices might revive trading. The
lubricants and fuel business should reap additional benefit from the stable
economic environment. Experience has shown that the reduction in feed-in
tariffs which becomes effective on 1 July 2011 is likely to have a positive
impact on the renewable energies business. Lutz anticipates that the sale
of projects planned by BayWa r.e will be the main influence in boosting
profit.
Agriculture is the mainstay of the positive quarterly result
The Agriculture segment, which comprises trading in agricultural operating
resources and produce and the agricultural equipment business, had
generated total revenues of around EUR 1 billion by the end of the first
three months of the current financial year, which is an increase of around
37.2 percent as against the year-earlier quarter. EBIT was raised by EUR
24.2 million to EUR 30.2 million.
This performance was driven especially by the higher volume of operating
resources sales and strong business in the subsequent collection and
storage of grain. The good weather conditions and the early onset of spring
encouraged demand for operating resources. The Group reported higher sales
volumes for fertilisers above all, accompanied by price increases. There
was also growth in the sales of feedstuffs, seed and crop protection.
The uptrend in the agriculture industry continued to have a positive impact
on the sale of agricultural machinery and equipment and associated
services. In comparison with the first three months of 2010, the
Agricultural Equipment business unit lifted revenues by around 30 percent
to almost EUR 195 million. An EBIT of 0.2 million marks the first time that
the business unit has delivered a positive result in this period (Q1/2010:
-EUR 4.8 million).
The uninterrupted willingness of farmers to invest also contributed to the
business unit's pleasing results, along with the higher level of services
rendered. New orders placed in the first quarter of 2011 recorded an
increase of around 20 percent in a year-on-year comparison. This trend also
held steady in April. The current weather conditions are, however,
problematic: The long dry period and the low level of waterways could have
an impact on the development of the Agriculture Segment.
Building Materials benefits from positive economic climate
In the first quarter, the Building Materials segment achieved revenues of
EUR 356.1 million, the equivalent of a rise of 24.2 percent. The segment
succeeded in considerably lowering the minus in EBIT typical of business in
the first quarter: EBIT came in at -EUR 19.6 million, which is an increase
of around EUR 6 million. The main factors influencing the positive
performance by the Building Materials segment were the mild weather and the
stable economic environment.
Trading conducted by the Building Materials business unit on behalf of
third parties reported an increase of approximately 60 percent as against
the previous year's period. The warehousing business, where demand is
generally stronger in the second half of the year, also expanded and
compensated for the decline anticipated in trading in photovoltaic
components. Overall, the Building Materials business unit generated
revenues of EUR 228.2 million (Q1/2010: EUR 176.2 million). EBIT was raised
to -EUR 16.4 million, up from -EUR 22.9 million in the year-earlier period.
The DIY and garden centres also delivered a sharp increase in revenues from
brisk garden business and last year's extension to the sales area of a
number of centres. The business unit's revenues climbed by EUR 17.3 million
to approximately EUR 127.9 million. EBIT posted -EUR 3.1 million, and thus
remained virtually unchanged from the previous year's figure. The slight
decrease of EUR 0.5 million is attributable to start-up costs incurred for
the new centres.
Energy: conventional business determined by high oil prices - renewable
energies on track
Total revenues of the Energy segment advanced by around 21 percent to EUR
558.9 million in the reporting period. There was a decline in EBIT of EUR
3.8 million to -EUR 0.5 million in total as against the year-earlier
figure. The higher revenues are attributable to the trading and service
activities of the BayWa r.e subsidiaries as well as to oil price hikes. The
decrease in EBIT resulted primarily from slack demand in the photovoltaic
business in the first quarter and customers' reluctance to place orders due
to high oil price levels.
The generally modest start to the year in the Energy segment is, however,
typical of the business, barring the special situation in 2010 when the
one-off reduction in the feed-in tariffs for solar electricity at mid-year
led to upfront investments in the first half of 2010. The Group expects
trading in the photovoltaic business to accelerate at mid-year 2011 as
there will be another lowering in feed-in tariffs which will take effect on
1 July. Moreover, as in the previous year, BayWa r.e is planning to sell a
number of completed biogas and solar power plants and wind farms in the
second half of the year. There are new projects in the pipeline in Great
Britain and Spain. BayWa r.e has acquired the rights for the construction
of wind farms in Great Britain. Work on building two wind farm projects
with a peak power of around 30 megawatts (MW) is due to start in 2011.
BayWa r.e has secured project rights for the construction of photovoltaic
power plants of just under 3 MW on Mallorca. In the first three months,
revenues in the field of renewable energies fell by around 23 percent to
EUR 35.3 million for reason of demand. EBIT declined to -EUR 1.6 million
(Q1/2010: +EUR 1.7 million).
Trading in conventional energy saw a considerable downturn in demand for
heating energy in the first quarter. This was caused by consumer behaviour
and reticence to place orders despite below-average tank filling levels and
due to the high price of oil and the brief winter compared with the
previous year. Sales volumes contracted by approximately 25 percent in the
first quarter as against the first three months of 2010.
By contrast, lubricants and fuels developed better, supported by the
economic environment: Lubricant sales climbed by 3 percent and diesel sales
by as much as 10 percent. All in all, revenues from conventional energy
trading reported a price-induced rise of 25.8 percent to around EUR 523.7
million. EBIT fell by 35.4 percent to approximately EUR 1.1 million due to
the lower volume of heating oil sales.
Contact:
Marion Danneboom, BayWa AG, Head of PR/Corporate Communication,
tel. +49 (0)89/92 22-36 80, Fax +49 (0)89/92 22-36 98,
e-mail: marion.danneboom@baywa.de
End of Corporate News
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Language: English
Company: BayWa AG
ArabellastraÃe 4
81925 München
Deutschland
Phone: 089/ 9222-3691
Fax: 089/ 9222-3698
E-mail: presse@baywa.de
Internet: www.baywa.de
ISIN: DE0005194062, DE0005194005,
WKN: 519406, 519400,
Listed: Regulierter Markt in Frankfurt (Prime Standard), München;
Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,
Stuttgart
End of News DGAP News-Service
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124267 12.05.2011
DGAP-News: BayWa AG: Excellent start to 2011 - BayWa delivers positive result in the first quarter
| Source: EQS Group AG