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Meat, Fish & Dairy Processing Industry Latest News

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Monday, February 08, 2010
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New Marel Ready for 2010

ICELAND - Iceland based meat and food processing equipment company, Marel, posted a solid operating performance and strong cash flow from core business despite significant measures taken that result in one-off costs in 2009, leading to a sustainable lower cost base.

Marel Food Systems

Revenues from core business for 2009 amounted to € 434.8 mln [2008: € 548.1 mln], with an EBIT of € 24.8 mln, or 5.7 per cent of sales [2008: € 38.2 mln, seven per cent of sales], and EBITDA of € 47.4 mln, or 10.9 per cent of sales [2008: € 60.0 mln, 11 per cent of sales].

Impairment related to non-core assets for sale (Food & Dairy Systems and Carnitech A/S) is € (24.5) mln. Consolidated revenues for 2009 amounted to € 531.7 mln [2008: € 540.1 mln] with a net result of € (11.8) mln [2008: € -8.4 mln] after impairment.

Marel has a strong balance sheet at the beginning of 2010; net debts are € 295 million compared to € 379 million at the beginning of 2009. Operating cash flow before interest and tax amounted to € 75 mln for the whole year 2009 and new equity issued amounted to € 49 mln.

Furthermore, interest cost and currency risk have been lowered as ISK-denominated debt has been paid down and ISK debt of € 66 mln converted into Euro-denominated debt in line with the company's revenue stream. Marel's order book is at a solid level and very much better than at the start of 2009. The level of activity in the market is increasing across the board and the prospect pipeline is growing, now also for the larger systems.

Theo Hoen, CEO said: “A year of transformation and cost cutting is behind. I believe that the company is in much better shape today than a year ago. We have made good progress in sharpening the company’s strategic direction.

"The integration of Marel and Stork proceeded extremely well in the second half of 2009. The positive effects of cost savings and cross-selling will be significant and will further materialize during the course of 2010. Profitability and cash flow have improved. We are a stronger company after having lowered our cost base while preserving our investment in R&D.

"In addition, leverage has been reduced. The order book is improving, with larger orders beginning to come in, a clear sign of growing confidence in our markets. We see that 2010 is getting off to a much better start than the previous year.

"The ‘new’ Marel is working as one team and the strategic focus is clear. And in 2009 we showed that we were capable of adapting to the changing market conditions, which was possible because of the loyal and dedicated people we have in our company. That is why I have great confidence in the future of the company and that our long-term objectives will be achieved.”


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