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Marel Sees Reduced Revenue and Profits

26 October 2012

ICELAND - Icelandic based meat and food equipment manufacturer Marel has seen reduced revenue and profits in the third quarter of the year.

The company has reported revenue of €164.3 million, a fall of 2.8 per cent compared to the third quarter of 2011 - €169.1 million.

Pre-tax profit was €20.5 million compared to 25.8 million in the third quarter of 2011.

However, the company said that the year to date revenues are up by 10.6 per cent compared with the first nine months of 2011.

Operating profit (EBIT) was €14.1 million or 8.6 per cent of revenues in the third quarter of 2012 compared to €19.5 million in 2011.

The net result for the quarter was €8.4 million compared to €10.5 million in 2011.

Marel said it expects the revenues growth for 2012 to be around five to six per cent with revised EBIT margin of around nine per cent. Theo Hoen, CEO said: "The market in 2012 has been challenging with results in last two quarters below our target. Despite this I feel we are doing well.

"We have achieved strong growth this year with operating profits close to nine per cent and expect to meet our EBIT target of 10-12 per cent soon again.

"We believe that demand is building up and we have many promising projects underway which we expect will turn into orders in the near future.

"With our strong global sales and service network we are uniquely positioned to deliver our innovative products. The efforts of our people to create a market driven organisation are showing results. Our fish segment is doing very well and the outlook for our meat segment is improving. All in all, we are well on track realising our growth agenda and I¡¦m optimistic for the coming years."

Revenues are expected to reach €700 million in 2012.

Revenues totalled €535.6 million for the nine-month period ending 30 September.


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