euro adhoc: VA Technologie AG / Annual Reports / Business Year 2003: Sustainable improvement in financial results (E)

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  • Operating result (EBIT) up by 22% to EUR 101 million
  • Significant increase in free cash flow and net liquidity
  • Sales at the previous year’s level
  • Share performance up by 65%
  • Significant increase in productivity
  • Growth markets China as well as Central and Eastern Europe

Increase of order intake and backlog, stable sales, improvement in the operating result

As a result of the stronger euro, particularly against the US dollar, order intake, order backlog and sales dropped by 2-3% after currency conversion.

Nevertheless order intake developed satisfactorily, going up EUR 211 million from EUR 4,125 million to EUR 4,336 million. The Metallurgy and Infrastructure divisions saw the biggest growth (up by EUR 102 million and up by EUR 66 million respectively).

Order backlog as at December 31 2003 stood at EUR 4,314 million, or EUR 353 million higher than the same date the year before. This corresponds to an average use of business capacity for more than a year.

Group sales volume, at EUR 3,923 million, was slightly up on 2002 (EUR 3,872 million). Particularly encouraging was the development in the Power Generation Division, which achieved an increase of 21% (or EUR 161 million).

Improved financial results, strong increases in liquidity and free cash flow

Equally satisfactory was the development of the EBIT, which saw a marked increase of 22% to reach EUR 101 million (2002: EUR 83 million). This includes EUR 25 million for restructuring.

The financial results improved from minus EUR 174 million to minus EUR 120 million due to higher liquidity, lower interest rates as well as the write-off of the investment in the German company Babcock Borsig Power in 2002 (EUR 44 million).

The year’s losses improved by EUR 78 from minus EUR 93 million to minus EUR 15 million in the past year. The 2003 financial results included goodwill amortization amounting to EUR 52 million as non-cash items (EUR 46 million in 2002).

Gross liquidity - the sum of liquid funds - amounted to EUR 824 m (2002: EUR 822 m). The interest bearing liabilities decreased by more than 20 percent (EUR 586 m) over the year 2002 (EUR 739 m). This is the reason for a strong increase of net liquidity to EUR 238 m (2002:
EUR 83 m). Thus the Group is debt free and gearing amounted to minus 50%.

Free cash flow also developed very well and increased to EUR 185 m (2002: EUR 101 m).
This is the result of active and consistent cash management in the entire Group.

Further inquiry note:
Wolfgang Schwaiger
Strategy, Communications and Investor Relations

phone: 43 732 6986-9222 fax: 43 732 6980-3416

Emittent: VA Technologie AG Lunzerstrasse 64 AT-4031 Linz ISIN: AT0000937453 WKN: 093745 Indizes: ATX, ATX Prime, WBI Börsen: official dealing Wiener Börse AG; free trade Berliner

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Wertpapierbörse, Bayerische Börse
Branche: Technology
Sprache: Englisch