Stork financial year 2007: Technical Services excellent, tough year for Aerospace.

 

       Net result 2007: € 67 million, eps: € 2.21  (2006: € 150 million, eps: € 4.76)

       EBIT: € 74 million  (2006: € 150 million)

       Turnover up 8% to € 2.163 billion  (2006: € 2.009 billion)

       Order portfolio up by 10% to € 1.176 billion  (2006: 1.062 billion)

 

CEO Sjoerd Vollebregt:

 

* For specials: consultants' costs 2006, book profit divestments

 

 

Results for Aerospace Industries over the whole year were negative, as expected, partly due to the provision taken in June 2007 for the NH90 programme. Results at Aerospace Services remained behind expectations due to the losses in Aircraft Conversion & Completion projects.

Food Systems performed well throughout the year, but failed to match last year's results due to a reorganisation provision in the fourth quarter for Food & Dairy Systems.

Technical Services continued the excellent results from the first three quarters into the fourth quarter thanks to Industry Services and in particular Industry Specialists.

 

 

 

In the fourth quarter, the liquidity position improved from € 115 million negative to € 42 million negative, partly thanks to income from the sale of Stork Prints. Operational cash flow in the fourth quarter of 2007 totalled € 67 million (Q4 2006: € 72 million). Investments in the fourth quarter were € 8 million higher than depreciation. The net debt position (liquidity minus long-term loans) increased in the fourth quarter from
€ 147 million negative to € 83 million negative.

 

 

 

Further acquisitions were concluded in the fourth quarter. Industry Specialists strengthened the Materials Technology activities through the acquisition of Sheffield testing (UK) and Mannings (UK). Industry Services concluded the acquisitions of Masa (Columbia), Exmont (Slovakia) and Istimewa (NL).

A 60% interest in Prints was sold to Bencis Capital Partners.

 

 

 

Without an economic recession, further growth in activities, both autonomous and through acquisitions is expected in 2008, with corresponding result improvements.

 

 

 

 

Over the entire year, the result within Aerospace Industries remained very negative due to delays with the Airbus A380 and the problems surrounding the NH90 military transport helicopter for which in June a provision of € 35 million had to be taken. In October, a major order was received for the design and construction of structural parts for a leading aircraft manufacturer. Stork expects annual turnover of US $ 60 million for this programme.

 

Aerospace Services completed a disappointing year, mainly due to losses within the Aircraft Conversion & Completion division. The Component Maintenance Services division performed as expected.

 

 

 

 

In the fourth quarter, Technical Services continued the excellent results from the first three quarters.

 

The market for Industry Services was once again positive. As a result both turnover and the order book were well up.

In the second half of the financial year, the acquisitions of Mιchanicos Asociados SA (MASA, Columbia), Exmont Engineering (Slovakia) and Istimewa Elektro (NL) were concluded. 

 

In the fourth quarter, Industry Specialists achieved excellent results partly due to favourable market conditions and acquisitions (including Turbo Services GmbH). As a consequence, 2007 was a very good year.

The Materials Technology activities were strengthened through the acquisition of Sheffield testing (UK) and Mannings Southport Limited (UK).

 

 

 

Food Systems performed well throughout the year, partly due to poultry processing activities, but fell behind on last year due to a reorganisation provision in the fourth quarter for Food & Dairy Systems and operational losses in that same unit.

 

 

The results of the Holding were positively influenced by the book profit on the sale of a 60% interest in Prints, but negatively influenced by costs for consultants and increased M&A activities.

 

 

 

 

Stork N.V.                                                     

Dick Kors                                                      

Tel.: 0031 (0) 35 - 695 75 75