Marel Food Systems hf. - Financial Statement Release

Correction : Marel 2009 results - Published 2010-02-04 20:20:30 GMT

Additional information: 
The Financial Statement for Marel for the year 2009 was presented to the
company's Board of Directors at a meeting on 4 February 2009. Marel has
presented the highlights of its operational results for 2009, financial
position at year end and cash flow for the period. The Financial Statement has
not yet been approved by the Board of Directors or the company's auditors. The
audited Financial Statement for 2009 will be presented to the Board for
approval on 9 February 2010 and released on that date. This is done in
accordance with the rules and regulations of NASDAQ OMX Iceland hf. 


”New” Marel ready for 2010

- Revenues from core business for 2009 amounted to EUR 434.8 mln, gradually
increasing during the year. EBIT from core business was EUR 24.8 mln, or 5.7%
of sales. 

- In 2009, Marel continued to strengthen its competitive position with a focus
on integration and significant cost reductions, which have reduced operational
costs by EUR 25 million. 
- Net interest bearing debt has been reduced to EUR 295 million [2008: EUR 379
million] with strong operating cash flow, successful equity issues and
increased focus with the sale of non-core operations. 
- In order to maintain its technological leadership, Marel continues to place
high priority on research and development. 
- The order book has been growing throughout the year and is at a solid and
much better level today than it was one year ago, which will positively affect
revenues and results. 
- The strategic focus has been sharpened with the sale of non-core operations.

Marel posted a solid operating performance and strong cash flow from core
business despite significant measures taken that result in one-off costs in
2009, leading to a sustainable lower cost base. Revenues from core business for
2009 amounted to EUR 434.8 mln [2008: EUR 548.1 mln], with an EBIT of EUR 24.8
mln, or 5.7% of sales [2008: EUR 38.2 mln, 7.0% of sales], and EBITDA of EUR
47.4 mln, or 10.9% of sales [2008: EUR 60.0 mln, 11.0% of sales]. Impairment 
related to non-core assets for sale (Food & Dairy Systems and Carnitech A/S) is
EUR (24.5) mln. Consolidated revenues for 2009 amounted to EUR 531.7 mln [2008:
EUR 540.1 mln] with a net result of EUR (11.8) mln [2008: EUR -8.4 mln] after
impairment. 

Marel has a strong balance sheet at the beginning of 2010; net debts are EUR
295 million compared to EUR 379 million at the beginning of 2009. Operating
cash flow before interest and tax amounted to EUR 75 mln for the whole year
2009 and new equity issued amounted to EUR 49 mln. Furthermore, interest cost
and currency risk have been lowered as ISK-denominated debt has been paid down
and ISK debt of EUR 66 mln converted into Euro-denominated debt in line with
the company‘s revenue stream. 

Marel´s order book is at a solid level and very much better than at the start
of 2009. The level of activity in the market is increasing across the board and
the prospect pipeline is growing, now also for the larger systems. 


Theo Hoen, CEO:
“A year of transformation and cost cutting is behind. I believe that the
company is in much better shape today than a year ago. We have made good
progress in sharpening the company's strategic direction. The integration of
Marel and Stork proceeded extremely well in the second half of 2009. The
positive effects of cost savings and cross-selling will be significant and will
further materialize during the course of 2010. Profitability and cash flow have
improved. We are a stronger company after having lowered our cost base while
preserving our investment in R&D. In addition, leverage has been reduced. 

The order book is improving, with larger orders beginning to come in, a clear
sign of growing confidence in our markets. We see that 2010 is getting off to a
much better start than the previous year. The ‘new' Marel is working as one
team and the strategic focus is clear. And in 2009 we showed that we were
capable of adapting to the changing market conditions, which was possible
because of the loyal and dedicated people we have in our company. That is why I
have great confidence in the future of the company and that our long-term
objectives will be achieved.” 


Q4 2009 results

Focus strategy executed and equity increased
- Revenues from core business for Q4 2009 totalled EUR 112.5 mln [Q4 2008: EUR
121.4 mln]. 
- EBITDA from core businesses was EUR 12.8 mln, or 11.3% of sales [Q4 2008: EUR
0.7 mln; 0.6% of sales]. 
- EBIT from core business was EUR 6.9 mln, or 6.2% of sales [Q4 2008: EUR (5.7)
mln; -4.7% of sales]. 
- The financial risk profile has dramatically improved with the issuance of new
shares for EUR 41 mln, with EUR 32 mln of the proceeds used to pay down
ISK-denominated bonds, and a currency conversion of ISK debt of EUR 66 mln into
Euro-denominated debt. 
- Integration plans are being implemented; re-branding and the integration of
distribution channels has begun and new products are being developed based on
joint technology. 

Consolidated  
- Consolidated revenues for Q4 2009 amounted to EUR 135.7 mln [Q4 2008: EUR
150.5 mln]. 
- Consolidated EBITDA was EUR 12.0 mln in Q4 2009 [Q4 2008: EUR (0.1) mln] and
consolidated operating profit (EBIT) was EUR (19.6) mln [Q4 2008: EUR (7.4)
mln]. 
- Net result was EUR (23.0) mln for Q4 2009 [Q4 2008: EUR (23.7) mln), caused
by the impairment of the non-core assets to be sold. 
- Food & Dairy Systems, a non-core operating unit, was sold in January 2010.
Impairment of the assets sold leads to a loss of EUR 16.4 mln, which has been
included in the 2009 accounts. 
- Carnitech A/S, a non-core operating unit, is held for sale. Impairment of the
assets leads to a loss of EUR 8 mln, which has been included in the 2009
accounts. 
- Net interest bearing debt was EUR 295 mln [2008: EUR 379 mln].


Presentation of results, 5 February 2010

Marel will present its results at a meeting on Friday, 5 February, at 8:30
a.m., at the company‘s headquarters at Austurhraun 9, Gardabaer. 


Publication days of the Consolidated Financial Statements in 2010 and the
Annual General Meeting 2010 

Publication dates of the Financial Statements for 2010:
- Annual General Meeting of Marel Food Systems hf           3 March 2010 
- 1st quarter 2010                                         28 April 2010
- 2nd quarter 2010                                         28 July 2010
- 3rd quarter 2010                                         27 October 2010 
- 4th quarter 2010                                          2 February 2011 
- Annual General Meeting of Marel Food Systems hf           2 March 2011


For further information, contact: 
Erik Kaman, CFO Tel: (+354) 563-8072 
Sigsteinn Grétarsson, Managing Director of Marel ehf. Tel: (+354) 563-8072


About Marel 
Marel is the leading global provider of advanced equipment, systems and
services to the fish, meat and poultry industries. With offices and
subsidiaries in over 30 countries and a global network of 60 agents and
distributors, we work side-by-side with our customers to extend the boundaries
of food processing performance. Marel: ONE STOP for all your processing needs.