BAUER AG starts the year with positive earnings after taxes and record order backlog

Total Group revenues increased by 17.2% compared to the previous year, from EUR 356.6 million to EUR 417.9 million
At EUR 4.1 million, EBIT was significantly higher than the previous year’s value of EUR 1.8 million; with EUR 1.6 million earnings after taxes were significantly higher (previous year: EUR -5.1 million)
Record value: Order backlog increased by 11.8% to EUR 1,478.5 million (previous year: EUR 1,322.1 million)
Forecast for 2022 confirmed

Schrobenhausen, Germany – The BAUER Group had a positive start to 2022. At the end of the first quarter of 2022, total Group revenues increased significantly by 17.2%, from EUR 356.6 million to EUR 417.9 million. At EUR 4.1 million, EBIT was significantly above the previous year’s value of EUR 1.8 million. At EUR 1.6 million, the Group’s earnings after taxes were significantly above the previous year’s value of EUR -5.1 million, and already positive in the first quarter for the first time in many years. This is the result of an improved operating result and market interest rate development that was more favorable for the company’s interest rate hedging.

The company set a new record for order backlog, which rose by 11.8% compared to the previous year, from EUR 1,322.1 million to EUR 1,478.5 million. The order intake increased slightly by 3.1%, from EUR 516.1 million to EUR 532.0 million.

“This positive business development was primarily attributable to the Equipment segment. A positive trend was already emerging there in the fourth quarter of last year, which continued at the beginning of 2022,” said Michael Stomberg, CEO of BAUER AG. In the Construction segment, the first few weeks of the year were a little more subdued, in particular with regard to international business, but remained in line with expectations. The Resources segment started the current year in line with plans.

Business segments

With its three segments – Construction, Equipment and Resources – and a broadly diversified business model, the company addresses major global trends such as rapidly progressing urbanization, infrastructure expansion, water extraction and treatment as well as generally increasing environmental awareness.

At EUR 183.8 million, total Group revenues in the Construction segment were up by 8.3% compared to the previous year at EUR 169.7 million. The increase is based on considerably higher order backlog compared to the previous year. EBIT decreased compared to the same period in the previous year, from EUR -0.2 million to EUR -2.6 million, which was mainly attributable to higher depreciation and expenses associated with a project for the foundation of an offshore wind farm.

Order backlog in the Construction segment grew by 4.9% from EUR 825.1 million in the previous year to EUR 865.7 million. The increase in the first quarter is mainly attributable to new projects in the USA. Order intake decreased by 25.4% to EUR 204.1 million, compared to EUR 273.4 million in the previous year.

At the end of the first quarter, total Group revenues in the Equipment segment increased very significantly by 26.0%, from EUR 152.0 million to EUR 191.5 million, when compared to the same period of the previous year. EBIT increased considerably compared to the previous year, from EUR 0.5 million to EUR 9.0 million.

The Equipment segment recorded a very good start to the year and was able to continue the positive trend regarding revenue and order intake that began in the fourth quarter of 2021. Price increases for raw materials and primary products were counteracted by the company with significant price increases for end products. Moreover, there were no major effects of material bottlenecks on production in the first quarter.

Order backlog increased very significantly by 47.7%, from EUR 152.7 million in the previous year to EUR 225.6 million, a level that was last achieved in 2008. At EUR 239.3 million, the order intake rose significantly by 28.8% compared to the previous year’s EUR 185.8 million.

At EUR 58.7 million, total Group revenues in the Resources segment were down by 7.1% after the first quarter, compared to the previous year’s EUR 63.2 million. EBIT decreased from EUR 2.1 million to EUR -1.3 million due to the decrease in revenues.

The Resources segment started the current year in line with plans. All business areas recorded positive development that was within expectations. Material bottlenecks and price increases didn’t yet have an effect on business in the first quarter.

At the end of the first quarter, the order backlog increased significantly by 12.4%, from EUR 344.3 million to EUR 387.2 million, which is primarily attributable to new orders in the mining division. The order intake grew accordingly by 22.9% from EUR 85.2 million to EUR 104.7 million.

Outlook

“We had a positive start to 2022 and a good result, particularly due to growth in the Equipment segment,” said Michael Stomberg. The Executive Board’s outlook has not changed since publication of the 2021 Annual Report in April. The COVID-19 pandemic, Russia’s war against Ukraine, global supply bottlenecks, and significant price increases remain major factors of uncertainty, especially with regard to the second half of the year.

The company continues to expect a significant increase in total Group revenues and EBIT for financial year 2022.