Results for the first half year of 2006
IWKA Aktiengesellschaft generated significantly higher orders received and sales revenues from continuing operations in the first half of the current financial year, as expected. At the same time, the company continues to reorganize the Group by making portfolio adjustments
August 8, 2006
- Orders received in the first half of 2006 at 853.6 million EUR, 12.7 percent higher than prior year
- Sales revenues rise 11.2 percent to 678.6 million EUR
- Operating earnings positive at 2.9 million EUR
- Several companies categorized as discontinued operations
- Loss from discontinued operations includes non liquidity-related valuation adjustments, which leadto a substantial deficit for the first half-year
- CEO Hein: "After a half-year of rigorous portfolio adjustments, we can see the first successes of IWKA's restructuring"
As announced, companies that do not meet the long-term return on investment targets have been categorized as discontinued operations and will be offered for sale. The corrections to the Group's structure required valuation adjustments that have led to a substantial earnings shortfall at the end of the first half-year. The program launched in 2005 aimed at changing IWKA Aktiengesellschaft into an automation group thus continues to be rigorously implemented. This will enable IWKA to report substantial positive earnings from operating activities for the current year.
Specifically, the IWKA Group's continuing operations reported 853.6 million EUR in orders received at the end of the first half-year, 12.7 percent more than the 757.4 million EUR achieved during the first half of 2005. Order backlog, calculated on the basis of the POC method, rose 25.1 percent. It ended at 762.0 million EUR versus 609.1 million EUR at December 31, 2005. Group sales revenues improved significantly, rising 11.2 percent from 610 million EUR in the first half of 2005 to the 678.6 million EUR posted in this interim report. IWKA achieved an EBIT of 2.9 million EUR (prior year: 3.7 million EUR), excluding earnings charges of 6.8 million EUR for the start-up of the pay-on-production contract for the Jeep Wrangler in the United States. A loss from discontinued operations of -52.5 million EUR includes non liquidity-related valuation adjustments, which lead to an aftertax deficit of -62.2 million EUR for the first half of 2006. At the end of June 2006, the total number of employees in all of IWKA Aktiengesellschaft's companies was 9,121. Continuing operations accounted for 7,491 persons, which compares to 7,883 as of December 31, 2005.
Wolfgang-Dietrich Hein, CEO of IWKA AG said: "After a half-year of rigorous portfolio adjustments, we can see the first successes of IWKA's restructuring. Orders received, sales revenues and operating earnings are trending higher. We will not compromise as we continue to forge ahead with the company's restructuring."