SOURCE: BAVARIA Industriekapital AG

August 14, 2009 01:09 ET

BAVARIA Industriekapital AG announces second quarters' results

MUNICH, GERMANY--(Marketwire - August 14, 2009) -


- Turnover declines significantly compared to the prior year, manly due to the financial crises

- Operating losses were considerably reduced compared to the first quarter

- An increasing order book gives rise to a positive forecast for the second half of 2009

Munich, 14 August 2009: The drastic downturn in the economy left an indelible mark on the BAVARIA Group's revenues, earnings and financial situation in 2009.

Group turnover in the first half-year of 2009 declined 23% to EUR 187.3 million compared to the same period a year ago. Not accounting for changes in the scope of the consolidation, the decline would have been 40%. The net earnings (EBITDA) for the operating subsidiaries declined from EUR 10.7 million in the year-earlier period to minus EUR 6.8 million. Compared to first quarter 2009, the loss in second quarter 2009 was able to be significantly reduced from EUR 4.9 million to EUR 1.9 million.

The BAVARIA Group had cash and cash equivalents totalling EUR 41.8 million as at 30 June 2009 (compared to EUR 54.1 million in the previous quarter). The dividend distribution of EUR 19.7 million has been made in June 2009. The amount of debt to banks increased to EUR 19.7 million compared to EUR 16.1 million in the previous quarter. This increase is attributable to payments for investments undertaken especially in the K+S Group.

Reimar Scholz, Spokesman of BAVARIA Industriekapital's Board, comments: "In light of uncertainties in terms of assessing the nature and scope of the economic crisis, our portfolio companies drew their conclusions and took the necessary steps with varying degrees of delay. For this reason we had to make some changes in management. We expect that we can again achieve operational profitability in the second half of the year through the actions that were initiated. We can already see a significant recovery in the June results for the larger equity holdings K+S Group and Fonderie du Poitou."

The industrial holding also emphasizes that it expects to be able to benefit from this crisis when making new acquisitions and consequently expects to make further acquisitions in the second half of the year.

BAVARIA Industriekapital AG is an industrial holding company which acquires low-profit companies throughout Europe. Through active restructuring and revitalization management it ensures the long-term success of the companies acquired. The majority of the stock of BAVARIA Industriekapital AG is family-owned and the company has been listed on the Entry Standard All Share Index of the German Stock Exchange since 2006. At present BAVARIA Industriekapital AG has holdings in twelve companies and around 3,000 employees. In 2008 the group turnover amounted to Euro 485 million and the group profit to Euro 23 million.

For additional information about BAVARIA Industriekapital, please visit our website at www.baikap.de

We would be pleased to answer any further questions you may have:

BAVARIA Industriekapital AG
Svea Strohm
Bavariaring 24
80336 München

Phone: + 49 - (0)89/ 72 98 967-0
Fax: + 49 - (0)89/ 72 98 967-10
E-Mail: svea.strohm@baikap.de

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