BAVARIA Industriekapital AG continues growth and publishes successful nine-months' results
- Group turnover up by 30% to EUR 376 million
- Consolidated net income during the first nine months of 2008 increases to EUR 28 million
- Financial resources add up to EUR 61 million
Compared to the previous year, the turnover rose by 30% to EUR 376 million and the consolidated net income during the first nine months of 2008 was EUR 28 million (previous year EUR 2 million). The operating income of the affiliated companies before depreciation and amortization (EBITDA) improved to almost EUR 19 million (previous year EUR 12 million). The affiliates Kienle + Spiess Group and Fonderie du Poitou Aluminium contributed a total of EUR 20 million to the results of the first nine months.
The financial resources of the group rose to EUR 61 million, despite outflows for dividend payments 2007 and share buybacks in an aggregate amount of EUR 21 million. Overall, an additional EUR 2 million have been used for share buybacks since the end of the 2007 financial year, the share buyback program will be continued within the scope of the existing approval of the annual shareholder meeting.
Notwithstanding the tense economic conditions, the Executive Board expects another increase in profits during the fourth quarter. Amongst others, one positive factor marks the rapid success of the restructuring efforts at the newly acquired companies Xenterio and Faral; after several years of losses, they made a positive earnings contribution for the first time with EUR 1 million in the third quarter. By virtue of the traditionally stronger output in the fourth quarter, the industrial holding company also expects a stronger performance increase for the majority of affiliates in the plant engineering sector. A pronounced earnings decline is however foreseen at the French affiliate Fonderie du Poitou Aluminium in the serial manufacturing / automotive sector as a result of the major slump in the local automotive market.
The Executive Board has a very positive assessment of the market for making new acquisitions at attractive terms: "Our solid financial position and excellent reputation which we established in restructuring and revitalizing about twenty companies by now are especially helpful for this," explains Reimar Scholz, the CEO of BAVARIA Industriekapital AG.
BAVARIA Industries Group AG
BAVARIA Industriekapital AG is an industrial holding company which acquires companies with a weak earnings position throughout Europe. By means of an active restructuring and rehabilitation management, it ensures the long-term business performance of the acquired companies. Comprehensive experience and the know-how of its employees allow BAVARIA Industriekapital AG to lead even companies in difficult industry sectors back into the black. The majority of the stock of BAVARIA Industriekapital AG is family-owned and the company has been listed in the Entry Standard All Share Index of Deutsche Börse since 2006. Currently, BAVARIA Industriekapital AG has stakes in eight companies and employs a total of about 3,000 people. In 2007, the turnover of the group amounted to EUR 410 million. BAVARIA Industriekapital's net income for the year was EUR 23 million.
For additional information about BAVARIA Industriekapital, please visit our website at www.baikap.de