Marel hf. - Financial Statement Release

Marel Q3 2011 results

Record order intake and solid operating performance

(All amounts in EUR)

  -- Revenues for Q3 2011 totalled 169.1 mln, an increase of 13.1% compared to
     revenues for the same period the year before [Q3 2010: 149.5 mln].
  -- EBITDA was 25.8 mln, or 15.3% of revenues [Q3 2010: 19.9 mln].
  -- Operating profit (EBIT) was 19.5 mln, or 11.5% of revenues [Q3 2010: 13.8
     mln].
  -- Net result was 10.5 mln for Q3 2011 [Q3 2010: 2.4 mln].
  -- Cash flow remains healthy and net interest bearing debt is 243.3 mln at the
     end of Q3 2011 [Q3 2010: 271.1 mln].
  -- The order book continues to grow as a result of a strong product pipeline
     and record quarterly order intake. The order book stands at 204.2 mln at
     the end of the quarter [Q3 2010: 141.2 mln].

Q3 2011 was a very good quarter for Marel. Revenues totalled 169.1 mln, an
increase of 13% compared to Q3 2010 and 4% compared to the previous quarter,
despite the summer holiday period. The EBIT margin was 11.5%, which is in line
with the company's target of 10-12% return on revenues for the year. 

Revenues for the first nine months of the year totalled 484.5 mln, an increase
of 16.9% compared to the same period the year before. Normalised operating
profit (EBIT) for the first nine months is 51.5 mln, or 10.6% of revenues, and
normalised EBITDA is 70.1 mln, or 14.5% of revenues.[1] The outlook for the
remainder of the year is positive. 



Theo Hoen, CEO:

“We had a very good quarter despite the summer holiday period. The strong
growth in our business is all organic. Revenues for the first nine months
increased by 17% compared to the previous year with an operating profit of
10.6%, which is fully in line with our targets for the year. The geographical
mix of projects is good, as demonstrated by the recent sale of a complete fish
processing line to China and the success of our co-extrusion sausage-making
lines in more established markets. This balance provides a solid platform for
further growth and value creation. 

We have many innovative products and solutions in the pipeline for all our
industry segments. Recent innovations include the new AeroScalder for the
poultry industry. The AeroScalder employs hot air for scalding, thereby
reducing the reliance on water, an increasingly scarce and expensive resource
globally. In addition to helping our customers to reduce costs, it is an
example of our efforts to develop environmentally friendly products that
contribute to sustainability.” 



Order book at record level

Marel continues to benefit from its strong market position and product
pipeline. Orders received, including service revenues, amounted to 197.0 mln in
Q3 2011, compared to 165.4 mln for the same period the year before. Orders
received once again exceeded orders booked off. The result is a continuing
increase in the order book, which stood at a record 204.2 mln at the end of Q3
2011, compared to 141.2 mln at the same time the year before. 



Outlook

Market conditions continue to be favourable. Marel has strengthened its market
position with the introduction of new solutions and further geographical
expansion. 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, 27 October 2011

Marel will present its results at a meeting on Thursday, 27 October, 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 2012 and
the Annual General Meeting 2012 

Publication dates of the Financial Statements for 2011:

  -- 4th quarter 2011                                                           
1 February 2012
  -- Annual General Meeting of Marel 
hf.                             29 February 2012



Publication dates of the Financial Statements for 2012:

1st quarter 2012                                                            26
April 2012 

2nd quarter 2012                                                           25
July 2012 

3rd quarter 2012                                                            24
October 2012 

4th quarter 2012                                                            30
January 2013 



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, COO, 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 2011 YTD figures are normalized for one-off costs of 11.1 mln in Q2 2011
related to a principle agreement on the future arrangement of the pensions
currently managed by the Stork Pension Fund.

Attachments:

Press Release Q3 2011.pdf

Financial Statements Q3 2011.pdf