technotrans AG

2007-08-06:

Successful first half 2007 at technotrans

revenue up 1.5 percent to € 76.6 million / EBIT and net profit slightly below prior-year due to extraordinary effects / targets for full year confirmed

The first six months of fiscal year 2007 have been notably successful for technotrans. The revenue of the Group rose to € 38.2 million in the second quarter of 2007 (previous year: € 37.6 million, up 1.5 percent). Revenue for the first half of the year reached € 76.6 million (previous year: € 75.5 million, up 1.5 percent). Earnings before interest and taxes (EBIT) amounted to € 7.8 million (previous year: € 8.0 million), the EBIT margin remains above 10 percent after the first half (10.3 percent, as against 10.5 percent in the previous year). The tax rate was 38.1 percent. From 2008 on technotrans should benefit appreciably from the recently agreed tax cuts in Germany. The net income for the first half totals € 4.7 million (previous year € 4.8 million). This corresponds to basic earnings per share of € 0.70 (previous year € 0.71).

The number of persons employed by the group rose from 752 at the start of the year to 811 at the reporting date of June 30, 2007, an increase of 59 persons or 7.8 percent. Compared with the first half of the previous year, the average number of employees was actually up from 708 to 784, a gain of 10.7 percent.

The segments
Revenue in the Technology segment reached € 58.4 million in the first half, almost exactly the same as in the prior-year period (€ 58.3 million).

The result for the segment of € 2.6 million was again well up on the weak first quarter (€ 2.3 million) but still below the corresponding prior-year figure (€ 2.9 million). The overall result for the segment in the first half was € 4.9 million (previous year € 5.7 million), representing a rate of return for the segment of 8.3 percent

Revenue for the Services segment rose from € 17.2 to 18.2 million in the first half of the year, representing growth of 6 percent. € 9.1 million of this total were generated in the second quarter (previous year € 9.0 million). The result for the segment made even better progress. For the first six months it rose to € 2.8 million, compared with € 2.0 million in the previous year, a gain of 36.9 percent. The overall rate of return for the segment was again 15.3 percent.

“Various factors were at play in suppressing growth,” explained Dirk Engel, Financial Director of technotrans AG. “The withdrawal from trading UV dryers in the USA we aim to compensate largely through the acquisition of rotoclean in the cleaning systems area, but of course this is project business. Furthermore compared with the first half of 2006 the very weak dollar has a considerable impact when the figures of our US business are translated into euros. On the earnings side we are not expecting any significant profit contribution from the acquisition of rotoclean for this year. The results are moreover affected by the higher personnel expenses and by the costs incurred as a result of the concerted drive to expand our international network.”

Outlook
In view of the challenges the company is facing in the current year management is not dissatisfied with the development in revenue in the first half of the year. “We will nevertheless still need to make quite an effort if we are to achieve our target of revenue in excess of € 160 million for the current financial year,” stated Heinz Harling, Chairman of the Board of Management of technotrans AG. “The regrettable delays in the start-up of our new product range in the domain of blanket cleaners and an industry climate that does not hold the prospect of significant growth rates in the months before its beacon exhibition, the drupa, are the conditions that we actively have to deal with.” Dirk Engel adds: “As the earnings situation has so far developed largely according to plan despite the low top-line growth rates, we are confident of achieving net income in the order of more than € 10.5 million for the year as a whole.”

Key Data

01-06/2007

Dates:
Publication of the figures for the third quarter of 2007 is scheduled for November 6, 2007.

Securities:
technotrans AG - ISIN DE0007449001 - German Securities Identification No. WKN 744 900

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These press releases contain forward-looking statements which are based on assumptions and estimations by the management board of technotrans AG. Even though the management board is of the opinion, that those assumptions and estimations are realistic the future development and the projected results may deviate substantially from the forward-looking statements. Those deviations can be due to several factors including but not limited to changes in the macro-economic situation, in the exchange rates, in the interest rates and in the graphic arts industry. technotrans AG gives no warranty and does not assume the liability for any damages in case the future development and the projected results do not correspond with the forward looking statements.