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Marel Sees Profits Slow

26 July 2012

ICELAND - Meat and food processing equipment company Marel has seen revenue for the second quarter of 2012 rise by 15.2 per cent compared to the same period last year, to €186.5 million.

EBITDA was €18.6 million or 10.0 per cent of revenues and operating profit (EBIT) was 12.2 million or 6.5 per of revenues compared to €15 million in the second quarter of 2011.

The net result for the second quarter of 2012 was €7 million compared to €0.2 million in 2011, which took into account the one-off cost related to pension funding amounting to €11.1 million.

The company said the order book remains at a good level of €182.6 million at the end of the quarter compared to €169 million at the end of the second quarter of 2011.

Revenues totalled €371.3 million for the first half of the year, an increase of 17.7 per cent compared to revenues for the same period the year before, when they were €315.4 million.

Operating profit (EBIT) was €33.3 million for the first half of the year, or nine per cent of revenues and the net result was €20.1 million for the first half of the year.

The company said that the second quarter signals a well balanced geographical split with large projects in Brazil, Turkey, the USA, South Africa and Russia. The revenue split across the Poultry, Fish and Further Processing industries is also at a good level.

Theo Hoen, CEO said:"We are satisfied that the business keeps growing and the order book stays at a good level. We have emphasised that results can vary from quarter to quarter. That is the case in the second quarter of this year. We have grown by 18 per cent compared to the first half of last year with an EBIT margin of nine per cent.

"Marel has a strong market position with good geographical spread and innovative products. Our aim is clearly to reach the EBIT target of 10 to 12 per cent for the full year."

In the second quarter there was a good pace of orders received (including service revenues), which amounted to €179.6 million compared to €168.8 million in 2011.

The main drivers of growth are orders for complete processing lines that comprise a wide range of products, such as the new salmon filleting system, which is taking off thanks to its value-adding features for the benefit of the customer, as well as innovative products like the AeroScalder.


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