KROMI Logistik AG publishes figures for the first half of the 2010/2011 financial year
H1 revenue up 8.2 % to TEUR 16,504 (previous year: TEUR 15,216) / EBIT at TEUR -399 after first six months (previous year: TEUR 311) / Full-year forecast confirmed
Business trends during the reporting period were characterized by continued recovery in all markets relevant for KROMI Logistik AG. The sharp production increase in the mechanical engineering sector and in the automotive supply industry comprised the most important factor in KROMI's target sectors. The aerospace industry was fairly stable compared to other customer sectors.
Rising demand for precision work tools as part of the macroeconomic recovery formed the basis for the revenue growth, and for the increase in the cost of materials from TEUR 10,981 to TEUR 11,957. The cost of materials ratio rose from 72.0 % to 72.5 %. As a result of the current situation on the market, the salary adjustments which were made in the first half of 2009/2010 expired. Together with the new hires required for new business, this led to personnel expenses increasing by to EUR 2,680 thousand compared to EUR 2,443 thousand, and the ratio of personnel expenses to revenues increased from 16.0% to 16.2%. KROMI reported consolidated earnings after tax of TEUR -378 for the first half of 2010/2011, compared with TEUR 192 in the prior-year period.
"We are satisfied with our business trend and our revenue growth given the economic upturn, particularly in the second half of the 2010 calendar year. At the same time, it should be considered that many mechanical engineering companies and automotive supply firms have not yet recovered to pre-crisis production volume levels, and that KROMI Logistik did not suffer revenue plunges during the crisis that were as sharp as in the rest of the sector. We concluded the half-year with a negative operating result due to start-up costs for new customers, rising investments arising from our expansion activity, and our participation at the AMB trade fair. Earnings should exhibit a more dynamic trend in the second half of the year, among other things as the result of the start-up of supplies to some new customers," as CFO Uwe Pfeiffer commented on the figures. "Our focus remains on providing sustainable supplies to our customers. We will not, however, put time before success," CEO Jörg Schubert went on to comment.
The company is correspondingly retaining its outlook, which it published on September 21, 2010, of an increase in revenue to between EUR 37 million and EUR 38 million, and of growth in EBIT to around EUR 1 million for the full 2010/2011 year. This is also because economic data and forecasts from the major sector associations indicate a positive economic trend over the course of 2011. "Although we are maintaining our forecast until further notice, were are nevertheless currently unable to assess conclusively whether some of the new projects will be realised as revenue in this or the next financial year," commented CFO Uwe Pfeiffer.
Over the course of the day, KROMI Logistik AG will make available for download its complete report for the first half of the 2010/2011 financial year on its website at www.kromi.de, in the Investor Relations area.
KROMI Logistik AG
KROMI Logistik AG offers manufacturing companies end-to-end outsourcing for the supply of precision tools (tool management) that is independent of a specific manufacturer, and it focuses on machining tools for metalworking and plastics. The Company combines classical tool trading with a peripheral tool supply that includes output machines in the customer's production area and an IT-based tool management and controlling system. The objective of KROMI's business operations is to effectively optimize the supply of tools for its clients and to secure the availability of the appropriate tools at the right time and at the right place. The company is already present at five locations in Germany and four abroad (Slovakia, Czech Republic, Brazil and Spain), and is active in three other European countries. To date, KROMI has primarily focused on customers in the engineering, shipbuilding and aerospace sectors as well as automotive suppliers. In fiscal year 2009/2010, the company recorded revenues on IFRS-basis of EUR 31,198 thousand (previous year: EUR 34,935 thousand). EBIT was at EUR 175 thousand (EUR -82 thousand).
On the Internet at www.kromi.de