Marel hf. - Financial Statement Release

Marel Q1 2011 results

A good start to the year


  -- Revenues for Q1 2011 totalled 153.5 mln, an increase of 19.1% compared to
     revenues from core business for the same period the year before [Q1 2010:
     128.9 mln].[1]
  -- EBITDA was 23.3 mln, or 15.2% of revenues [Q1 2010: 20.9 mln from core
     business].
  -- Operating profit (EBIT) was 17.1 mln, or 11.2% of revenues [Q1 2010: 15.1
     mln from core business].
  -- Net result was 8.8 mln for Q1 2011 [Q1 2010: 5.6 mln consolidated].
  -- Operational cash flow remains strong and net interest bearing debt is 247.6
     mln at the end of Q1 2011 [Q1 2010: 286.3 mln].
  -- The order book continues to grow as a result of a strong product pipeline
     and favourable market conditions. The order book stands at 169.3 mln at the
     end of the quarter [Q1 2010: 113.5 mln from core business].

Q1 2011 was a good quarter for Marel. Revenues totalled 153.5 mln, an increase
of 19% compared to Q1 2010. Once again, the company delivered on its long-term
target of 10-12% return on revenues. Orders received continue to exceed orders
booked off, leading to a continuing increase in the order book, which stood at
169.3 mln at the end of the quarter, compared to 162.2 at the end of the
previous quarter and 113.5 mln at the same time the year before. 

(All amounts in EUR)



Theo Hoen, CEO:

“The year has gotten off to a good start and we are satisfied with the results
of the first quarter. We see substantial growth compared to the same period
last year and our net result is increasing, with a good balance between our
four market segments. Once again we are well within our long-term target of
10-12% return on revenues. 

Orders received remain strong and the order book continues to climb to new
record levels. After having recovered in 2010, greenfield and other large
projects are coming in at a steady pace and the sale of standard solutions
remains healthy. We continue to capitalise on our investment in innovation and
product development in the past two years, as demonstrated by the success of
our new IBS 4600 bacon slicer this quarter in the U.S.[2]

Our Q1 performance and growing order book give us confidence that 2011 will be
a good year.” 



Order book continues to climb

Marel continues to benefit from its strong market position and product
pipeline. Orders received, including service revenues, amounted to 160.7 mln in
Q1 2011, compared to 135 mln for the same period the year before. With the
number of large orders having bounced back to the levels they were at before
the crisis, orders received once again exceeded orders booked off. The result
is a continuing increase in the order book, which stood at a record 169.3 mln
at the end of Q1 2011, compared to 113.5 mln at the same time the year before. 

Operational cash flow before interest and tax remains healthy at 14.1 mln for
Q1 2011. The balance sheet is strong and net debts amount to 247.6 mln compared
with 286.3 mln in Q1 2010. 



Outlook

Market conditions have continued to improve. Marel has strengthened its market
position and the excellent level of the order book ensures a good continuation
of the year. Nevertheless, results may vary from quarter to quarter due to
fluctuations in orders received and deliveries of larger systems. 



Presentation of results, 28 April 2011

Marel will present its results at a meeting on Thursday, 28 April, at 8:30
a.m., at the company‘s headquarters at Austurhraun 9, Gardabaer, Iceland.  The
meeting will also be webcast: www.marel.com/webcast 



Publication days of the Consolidated Financial Statements in 2011 and the
Annual General Meeting 2012 

  -- 2nd quarter 2011                                                           
     27 July 2011
  -- 3rd quarter 2011                                                           
     26 October 2011
  -- 4th quarter 2011                                                           
     1 February 2012
  -- Annual General Meeting of Marel hf.                                 29
     February 2012


For further information, contact:

Jón Ingi Herbertsson, Investor and Public Relations Manager, tel: (+354)
563-8451 

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 close to 30 countries and a global network of more than 100
agents and distributors, we work side-by-side with our customers to extend the
boundaries of food processing performance. Advance with Marel for all your
processing needs. 

Forward-looking statements

Statements in this press release that are not based on historical facts are
forward-looking statements.   Although such statements are based on
management's current estimates and expectations, forward-looking statements are
inherently uncertain. We, therefore, caution the reader that there are a
variety of factors that could cause business conditions and results to differ
materially from what is contained in our forward-looking statements, and that
we do not undertake to update any forward-looking statements. All
forward-looking statements are qualified in their entirety by this cautionary
statement. 





[1] The disposal of the company's main non-core assets was completed in Q1 2010
with the sale of Carnitech A/S and Food & Dairy Systems. The consolidated Q1
2010 results include figures from Carnitech A/S up until 1 February 2010 and
Food & Dairy Systems until 31 March 2010. In comparing the Q1 2011 results with
the same period the year before, it is therefore more useful to refer to the
2010 figures for core business than the consolidated figures. 



[2] The IBS 4600 is the first bacon slicer on the market to have four
independent feeds, each with its own vision system that measures the fat/lean
ratio of each belly or loin as it is being sliced and automatically adjusts the
thickness of each slice according to its fat content. The controlled weight
slices are then conveyed into a microwave cooker.

Attachments:

Consolidated financial statements Q1 2011.pdf

Press Release Q1 2011.pdf