– Order intake up 13% in 2011 to EUR3.2 billion
– Revenues rise 16% to EUR2.97 billion
– Adjusted return on sales of 11.6%
– Adjusted EBIT increases by 42.6% to EUR345.2 million
– Dividend proposal of EUR0.75 per share (previous year: EUR0.50)
– Profitable growth expected again in 2012
Friedrichshafen, 8 March 2012. The specialist for propulsion and power
solutions Tognum AG remains on its course of growth and continues to expand
its position on the market. '2011 was another successful financial year for
Tognum,' said Joachim Coers, CEO of Tognum AG. 'Following a strong finish
at the end of the year, we exceeded our own forecasts slightly and saw a
significant increase in our consolidated net income. Once again our
customers were convinced by the performance and technology standard of our
products. The majority shareholding that Daimler AG and Rolls-Royce plc
acquired in Tognum AG last year also shows that we are moving in the right
direction. The commitment of these two international groups is recognition
of what we have achieved to date and of the excellent quality of our
products.'
In the implementation of its strategy, Tognum made considerable progress in
the course of the financial year just ended. Coers: 'We have invested
heavily in the future: on the one hand by expanding our R&D activities and
on the other hand with higher investments. We have increased our market
share in most applications and improved our earnings situation. For the
current year, despite moderate economic prospects, we are confident that we
will continue to see profitable growth.'
Strong growth in core business
As a result of the positive economic performance, the order intake in the
year just ended increased by 13% to EUR3,199.7 million (2010: EUR2,830.5
million). At the same time, revenues were up 15.9% to EUR2,972.1 million
and were thus significantly above the level of the previous year (2010:
EUR2,563.6 million). Some 85.3% of the revenues were generated outside
Germany (2010: 81.3%).
The adjusted EBIT rose by 42.6% to EUR345.2 million (2010: EUR242.1
million). This represents an adjusted return on sales of 11.6% (2010:
9.4%). Tognum thus slightly exceeded its autumn 2011 forecast. The
improvement is due primarily to an increase in the capacity utilisation,
increased efficiency and an improved revenue mix.
The adjusted consolidated net profit, compared with the previous year,
showed strong growth, increasing by 51.8% to EUR241.6 million (2010:
EUR159.2 million). The adjusted earnings per share amounted to EUR1.84
(2010: EUR1.21). In line with the proposal made to the Annual General
Meeting on 5 June, the shareholders are to share in this result in the form
of a 50% increased dividend of EUR0.75 per share (previous year: EUR0.50
per share). This represents a total dividend payment of EUR98.5 million
(previous year: EUR65.7 million).
Investments up again
Tognum reinforced the foundations of its course of expansion once again in
the year just ended by increasing its investments to EUR165.8 million
(2010: EUR152.8 million). Of this amount, EUR123.4 million (2010: EUR113.7
million) was invested in property, plant and equipment. A regional focus
was on investments in US locations. To ensure that these are state of the
art, we set up a new assembly and manufacturing plant, a modern spare parts
warehouse and a training centre. In addition, Tognum invested in a
materials management centre in Friedrichshafen to further optimise the
group's production logistics system. As planned, the company also increased
its adjusted R&D activities in the year just ended to EUR215.3 million
(2010: EUR192.6 million). Almost one in ten of the entire workforce is now
involved in research and development.
Sound financing structure
The high free cash flow enabled Tognum to reduce the net financial debt to
EUR5.0 million (31.12.2010: EUR57.2 million). The group's equity base was
up 19.2% compared with the previous year to EUR876.9 million (31.12.2010:
EUR735.8 million). This resulted in the equity ratio increasing to 28.1%
(31.12.2010: 26.8%). 'The pleasing earnings performance of the Tognum Group
in 2011 enabled us once again to strengthen the financing structure and
provide a sufficiently high liquidity level,' stated Dieter Royal, CFO of
Tognum AG.
Growth in all three reporting segments
With its three reporting segments – Engines, Onsite Energy & Components
(OE&C) and Distribution – Tognum has a broadly diversified and balanced
business model. This means that it enjoys limited vulnerability to the
economic cycles of individual application areas and regions. This once
again paid off for the group in the financial year just ended. All
reporting segments benefited from the positive economic performance.
In the Engines segment, the order intake in the year just ended was up
12.2% to EUR2,186.0 million (2010: EUR1,948.8 million), with revenues
increasing by 8.5% to EUR1,995.1 million (2010: EUR1,839.4 million). The
adjusted return on sales once again improved significantly as a result to
15.0% (2010: 12.0%). The increase in revenues in Marine applications was
due primarily to the business in propulsion systems for yachts and
commercial vessels. In the Industrial application area, rail and mining
business performed positively. In the Oil & Gas application area, as a
result of higher investments due to the increase in raw material prices,
there was a significant above-average increase in revenues. As expected,
revenues in the Defense business remained stable, as new projects, in
accordance with the implementation schedule, were not yet ready for
completion. After Sales business declined slightly, but remained at a high
level.
The OE&C segment reported an increase in the order intake of 11.5% in 2011
to EUR1,046.6 million (2010: EUR938.8 million), with revenues increasing by
no less than 29.8% to EUR990.5 million (2010: EUR763.3 million). The
adjusted return on sales rose to 7.7% (2010: 4.1%). In the OE Diesel
Systems & Engines application area, both the business in diesel systems and
the supply business to OEM customers performed positively. Revenues in the
OE Gas & Fuel Cell Systems subsegment were up EUR14.4 million to EUR64.7
million (2010: EUR50.3 million) due to the growing demand for gas systems.
After Sales/Other business increased once again at a high level. In the
case of business in injection systems, Tognum reported an increase of 27.4%
to EUR194.8 million (previous year: EUR152.9 million).
In the Distribution reporting segment, the order intake was up 48.5% to
EUR552.6 million (2010: EUR372.0 million). The revenue volume also saw a
very strong increase of 58.7% compared with the previous year, rising to
EUR504.0 million (2010: EUR317.6 million). The adjusted EBIT increased by
21.4% to EUR28.9 million (2010: EUR23.8 million) with an adjusted return on
sales of 5.7% (2010: 7.5%).
Number of employees up again
At the end of 2011, the Tognum Group had a total of 9,821 employees on its
payroll, which is 8.6% more than in the previous year (31 December 2010:
9,046). Of these, 7,845 are employed in Germany, 861 in the USA and 741 in
Asia.
Outlook
Despite economic uncertainty, Tognum anticipates further profitable growth
for the 2012 financial year. The company expects a revenue increase in the
single-digit percent range and an adjusted return on sales of more than
10%.
—–
The new Tognum Annual Report, including a letter from the CEO to
shareholders, customers and business partners as well as the Individual
Financial Statement for the 2011 financial year, are available for download
from the company's website at www.tognum.com under 'Investors'.
Key figures for the Tognum Group
(EUR million as of 31 December if not otherwise indicated)
2010 2011 Change
( Press photos can be downloaded from the Tognum website at www.tognum.com/press
Tognum
With its two business units, Engines and Onsite Energy, the Tognum Group is
one of the world's leading suppliers of engines and propulsion systems for
off-highway applications and of distributed power generation systems. These
products are based on diesel engines with up to 9,100 kilowatts (kW) power
output, gas engines up to 2,150 kW and gas turbines up to 45,000 kW.
The product portfolio of the Engines business unit comprises MTU engines
and propulsion systems for ships, for heavy land, rail and defense vehicles
and for the oil and gas industry. The Onsite Energy business unit supplies
distributed power generation systems carrying the MTU Onsite Energy brand.
These comprise diesel engines for emergency power, prime power and
continuous power, as well as cogeneration power plants based on gas engines
and gas turbines that generate both power and heat. Tognum's product
portfolio also features fuel-injection systems built by L'Orange.
In 2011, Tognum generated revenue of around EUR2.97 billion and employs
approximately 10,000 people. Tognum has a global manufacturing,
distribution and service structure with 22 fully consolidated companies,
more than 140 sales
partners and over 500 authorized dealerships at approximately 1,200
locations. Since
September 2011, Engine Holding GmbH, a joint venture between Daimler AG and
Rolls-Royce Group plc, has a majority holding in Tognum.
Disclaimer
Forward-looking statements
This release contains forward-looking statements based on assumptions,
forecasts and estimates made by Tognum's executive board of management.
Although we assume that the assumptions, forecasts and estimates forming
the basis for these forward-looking statements are realistic, we cannot
guarantee that they will prove to be correct in the future. Assumptions,
forecasts and estimates may entail risks and uncertainties which may cause
actual results to differ considerably from those included in
forward-looking statements. Factors which may result in such discrepancies
include, among other things, changes in the economic and business
environment, fluctuations in exchange and interest rates, the introduction
of competing products, lack of acceptance for new products or services and
changes in corporate strategy. Tognum undertakes no obligation to update
and/or to correct and/or to confirm forward-looking statements or to
release publicly any updates or corrections to any forward-looking
statements in order to reflect events or circumstances which occur after
the date of this release.
Contact:
Investors & Analysts contact:
IR Team ir@tognum.com
+49 (0)7541-90 3318
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Language:
English
Company:
Tognum AG
Maybachplatz 1
88045 Friedrichshafen
Germany
Phone:
+49 (0)7541 90 3318
Fax:
+49 (0)7541 90 90 3318
E-mail:
ir@tognum.com
Internet:
http://www.tognum.de
ISIN:
DE000A0N4P43
WKN:
A0N4P4
Listed:
Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart