Burckhardt Compression: Revised guidance for first half fiscal year 2013

September 24, 2013

Burckhardt Compression expects its sales for fiscal year 2013 to be nearly 20% higher than in the previous fiscal year while the order intake is likely to exceed the sales. The operating profit margin for fiscal year 2013 is expected to be in the lower third of the long-term target range of 15% – 20%, which is slightly less than the guidance given with the publication of the 2012 annual report. Due to two major compressor system projects that will presumably be concluded with lower than expected gross margins, the operating profit margin in the first half will be significantly lower than in the second half.

As predicted in the 2012 annual report, most of the markets addressed by Burckhardt Compression continue to display positive momentum. The company expects sales for fiscal year 2013 nearly 20% above the previous year. Order intake is expected to exceed the sales for the same reporting period.

Due to two major compressor system projects that will presumably be concluded with much lower than expected gross margins, the operating profit margin for the current fiscal year will be in the lower third of its long-term target range of 15% – 20%. The initially given guidance for the operating margin was in the middle of the target range. Corrective measures have been taken to improve the divergent gross margins of these two projects.

Net income for the fiscal year 2013 is expected approximately at prior year level, whereas the net income for the first half will be significantly lower than in the prior year period due to the two projects.

Sales, operating profit and net income in the second half of the current fiscal year will be well above the first-half figures, mainly because order shipments will be higher in the second half and due to the absence of the provisions to be set aside in the first half for the two aforementioned projects with negative gross margins.

The targeted payout ratio for the dividend payment remains unchanged at 50% to 70%. Burckhardt Compression will report its results for the first half of fiscal year 2013 (closing September 30, 2013) on November 5, 2013.

 

About Burckhardt Compression

Burckhardt Compression is one of the worldwide market leaders in the field of reciprocating compressors and the only manufacturer that covers a complete range of reciprocating compressor technologies. Its customized compressor systems are used in the upstream oil & gas, gas transport and storage, refinery, chemical, petrochemical and industrial gas sectors. Burckhardt Compression’s leading technology, high-quality compressor components and the full range of services help customers to minimize life cycle costs of their reciprocating compressor systems around the world. Since 1844 its highly skilled workforce has crafted superior solutions and set the benchmark in the gas compression industry.

 

Disclaimer

Burckhardt Compression is making great efforts to include accurate and up-to-date information in this document, however we make no representations or warranties, expressed or implied, as to the accuracy or completeness of the information provided in this document and we disclaim any liability whatsoever for the use of it.

The information provided in this document is not intended nor may be construed as an offer or solicitation for the purchase or disposal, trading or any transaction in any Burckhardt Compression securities. Investors must not rely on this information for investment decisions.

All statements in this report which do not reflect historical facts are statements related to the future which offer no guarantee with regard to future performance; they are subject to risks and uncertainties including, but not limited to, future global economic conditions, exchange rates, legal provisions, market conditions, activities by competitors and other factors outside the company’s control.

 

Contact:

Marcel Pawlicek, CEO
Tel.: +41 (0)52 262 55 00
Fax: +41 (0)52 262 00 51
[email protected]

or

Rolf Brändli, CFO
Tel.: +41 (0)52 262 55 00
Fax: +41 (0)52 262 00 51
[email protected]

www.burckhardtcompression.com