IFCO Systems
FRANKFURT : IFE1

IFCO Systems

August 11, 2005 11:03 ET

IFCO Systems Reports Continuing Gains in Revenues and Operating Profitability in Q2 2005

HOUSTON, TEXAS--(CCNMatthews - Aug. 11, 2005) -

Due to strong business development in RPC- as well as Pallet-Management-Services IFCO Systems (Frankfurt:IFE1) improved its Q2 2005 results over Q2 2004:

-- Q2 2005 revenues grew by 24.5% to US $145.7 million (H1 2005, 21.5% to US $274.4 million).

-- Q2 2005 EBITDA improved by 32.6% to US $24.0 million (H1 2005, 32.9% to US $41.9 million).

-- Q2 2005 EBIT grew by 62.7% to US $16.8 million (H1 2005, 66.8% to US $26.8 million).

-- Q2 2005 net profit decreased by 22.9% to US $7.4 million (H1 2005, (33.2%) to US $10.1 million).

IFCO Systems' net profit decreased principally as a result of a higher deferred income tax provision, a decreased result of discontinued operations, and a larger non-cash foreign currency loss. Operating cash flows from continuing operations decreased as a result of increased working capital requirements during H1 2005. However, operating cash flow before working capital changes grew by 26.7% in H1 2005 compared to H1 2004. The company increased significantly its capital expenditures in RPCs in order to cope with increased demand.

ROCE (Return On Capital Employed) from continuing operations increased to 22.7% as of June 30, 2005, as compared to 20.4% as of December 31, 2004.



(US $ in thousands,
except per share
amounts) Q2 2004 Q2 2005 Change H1 2004 H1 2005 Change
------------------------- -------------------------

Revenues 116,974 145,664 24.5% 225,898 274,375 21.5%
Gross profit 19,896 29,701 49.3% 35,440 52,007 46.7%
Gross profit margin 17.0% 20.4% 15.7% 19.0%
EBITDA 18,143 24,049 32.6% 31,555 41,924 32.9%
EBITDA margin 15.5% 16.5% 14.0% 15.3%
EBIT 10,307 16,770 62.7% 16,068 26,795 66.8%
EBIT margin 8.8% 11.5% 7.1% 9.8%
Net profit 9,533 7,354 (22.9%) 15,054 10,052 (33.2%)

Net profit per
share - basic 0.22 0.16 (24.9%) 0.34 0.22 (34.9%)

Operating cash
flows from
continuing
operations 19,578 23,244 18.7% 23,088 16,535 (28.4%)
Capital
expenditures from
continuing
operations 15,930 26,301 65.1% 29,762 40,959 37.6%



IFCO Systems continues to expect that the economies of its principal markets, the United States and Western Europe, to grow in line with the development seen in 2003 and 2004. IFCO Systems believes that the market development referred to above, together with its operational business development, will result in increased operating income during fiscal 2005 as compared to 2004.

For further explanations please see IFCO Systems' quarterly report, which will be filed with the Deutsche Borse AG on or about August 11, 2005, and will be available the company's website www.ifcosystems.com or www.ifcosystems.de.

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