Satisfactory Improvement of Overall Performance Despite Challenging Market Environment

Transcription

1 PRESS RELEASE Satisfactory Improvement of Overall Performance Despite Challenging Market Environment Aliaxis 2011 Full Year Results Brussels, April 12, 2012 Aliaxis, a leading global manufacturer and distributor of plastic fluid handling systems, today released its 2011 full year results which highlight a strong improvement of performance despite challenging market conditions. On April 5, 2012 the Board of Directors approved the submission of the consolidated 2011 annual accounts to the General Shareholder Meeting that will be held on 23 May Highlights 2011 full year results Revenue amounts to 2,235 million, an increase of 5.3% (a like-for-like¹ increase of 6.1%) with an operating income (EBIT) of 175 million, an increase of 28.9% (a like-for-like¹ increase of 28.8%). Challenging market conditions in Europe. Continued strong performance in North America as a result of a positive market environment in Canada and improvement in the US. Revenue increases throughout Latin America and improved performance in Mexico and Central America with mixed results in South America. Satisfactory performance in Australia and New Zealand. Overall good performance in Asia and encouraging improvement in South Africa. Proposed dividend of 0.30 gross per share ( net), an increase of 11.1% COMMENTS Revenues from sales in 2011 reached 2,235 million (2010: 2,123 million) representing an overall increase of 5.3%. On a like-for-like¹ basis, the revenue improved with 6.1% with no material changes in the scope of consolidation in The Group s operating income (EBIT) grew 28.9% amounting to 175 million (2010: 136 million), representing 7.8% (2010: 6.4%) of the total revenue. The operating income includes charges of 4.1 million (2010: 8.9 million) relating to impairment of goodwill and 6.1 million of other non-recurring items. Current EBIT 2 grew 5.5% to 185 million (2010: 176 million). The Group s net profit for 2011 grew 32% to 91 million (2010: 69 million). 1

2 Despite a challenging European economic climate and with more encouraging conditions in most other regions of the world, the Group realised an overall satisfactory performance, with increases of turnover and profitability. Most regions contributed to the overall top line improvement. The contribution of the various regions to the operating margins showed a more mixed view. The Group maintained a very solid balance sheet. Financial indebtedness was 279 million, close to the historic low level that was reached at the end of This amount was impacted by the funding of a North-American settlement of product liability claims amounting to 30.9 million. In 2011 the medium and long term financing of the Group was secured through a series of agreements with maturities of up to 12 years. Europe Regional performance of the Building and Sanitary Division remained in line with the recent past with challenging market conditions especially in building and construction. The Division continued to focus on improvement of customer service, achievement of synergies and improvement of some underperforming activities. The Utilities and Industry Division, which is more export oriented, was driven by different market dynamics and delivered a solid set of results with an overall satisfactory performance. New product development and an extension of its footprint into new territories remain the Division s key focus. North America In North America, operations in Canada continued to show good performance and in the US construction activity improved. The Division maintained its focus on cost containment and asset management measures, as well as continuous development of new products. In the US, Harrington Industrial Plastics, the Group s specialized distributor of industrial piping systems continues to perform well and furthered its expansion through opening new branches. It acquired Protec Construction Services and Supply, a Texas based specialized distribution business for high purity and industrial piping systems. Latin America Continuous and significant revenue increases characterized our businesses in Latin- America. Operating performance progressed in Mexico and Central America. In South America the operations in Colombia started to show improvements. Those in Peru suffered from a slow start of the year. In Brazil, the business was not able to improve its operating performance. The focus of the Division remained on productivity improvements and product range extension. Australasia, Asia and South Africa A struggling construction market in New Zealand and adverse weather conditions In Australia influenced the top line performance. 2

3 However the Division managed to perform well thanks to continued focus on efficiency, margins and cost management. Performance in Asia overall remained at satisfactory levels and in South Africa the operations registered encouraging progress and growth. OUTLOOK FOR 2012 The Group does not anticipate major improvement in market conditions in Europe. Provided that spillover effects of the European debt crisis remain limited, most regions other than Europe could be expected to show gradual improvements in their general economic conditions. The construction industry outlook overall could be expected to be in line with these general economic prospects. In these circumstances the Group continues its firm focus on improving underperforming businesses, further aligning European operations, product development and delivering on strategic projects that will strengthen the Group s position. ANALYSIS OF REVENUE By geographical area Asia, Australasia & Africa 13% Latin America 15% Europe 43% North America 29% By application Other applications 26% Gravity Systems 37% Pressure Systems 37% 3

4 STATEMENT OF THE AUDITOR The statutory auditor, KPMG Bedrijfsrevisoren Réviseurs d Entreprises, represented by Benoit Van Roost, has issued an unqualified audit opinion on the consolidated financial statements, and has confirmed that the accounting data reported in this press release does not include any inconsistencies with the IFRS consolidated financial statements. SUMMARY TRADING INFORMATION Year ended 31 December ( million) Inc/(dec) Revenue 2,235 2, Current EBITDA % of revenue 12.2% 12.5% Current EBIT ² % of revenue 8.3% 8.3% Operating income (EBIT) % of revenue 7.8% 6.4% Profit before income taxes Net profit, attributable to : Non-controlling interest Equity holders of the Company per share, share of Equity holders of the Company % Inc/(dec) Basic earnings per share % Diluted earnings per share % Proposed gross dividend % 4

5 SUMMARY CONSOLIDATED FINANCIAL POSITION At 31 December ( million) Inc/(dec) Intangible Assets (3) Property, Plant and Equipment (10) Non Current Investments Deferred Tax Assets Employee Benefits Derivatives Other Non Current Assets Total Non Current Assets 1,357 1, Non-Cash Working Capital Total 1,803 1, Equity holders of the Company 1,375 1, Non-controlling interests Total Equity 1,385 1, Deferred Tax Liabilities Employee Benefits Derivatives Other Non Current Liabilities Net Financial Debt Total 1,803 1, Like-for-like being at constant exchange rates and excluding the impact of changes in scope of consolidation 2 Current EBIT being profit from operations before non recurring items 3 Current EBITDA being EBITDA before non recurring items 4 Per share data calculated on the total weighted number of shares in issue, net of treasury shares. Contact: Aliaxis S.A. Avenue de Tervueren Bruxelles Manuel Monard - Tél Fax info@aliaxis.com 5