KHD Humboldt Wedag International reports

KHD Humboldt Wedag International reports
Published: 15 August 2007

KHD Humboldt Wedag International Ltd today announced results for the second quarter and six months ended June 30, 2007. All figures are in US dollars and earnings per share amounts are on a diluted basis.

For the six months ended June 30, 2007, KHD reported revenues from continuing operations of $270.0 million and income from continuing operations of $22.9 million, or $1.52 per share.

The 2007 revenues are an increase of 89 percent over the revenues of $142.8 million in the first half of 2006, and the 2007 income from continuing operations is an increase of 131 percent over the $9.9 million or $0.66 per share for the first six months of 2006 for the same operations.

Order intake is defined as the total value of all orders received during the respective period, while order backlog is defined as the value of orders received but not yet fulfilled. KHD books orders on the basis of firm contracts and receipt of the generally required down payment from our customers. 

Order intake for the six months ended June 30, 2007 was $307.7 million, 28 percent lower than the same period of 2006; 57 percent of the 2007 order intake came from the emerging regions of Asia, Russia and Eastern Europe.

Order intake for the quarter ended June 30, 2007 was $154.9 million, a decrease of 52 percent from the second quarter of 2006; 65 percent of the 2007 second-quarter order intake came from the emerging regions of Asia, Russia and Eastern Europe.

Chairman Michael Smith commented, "At the end of the first six months of 2007, we had $248 million in cash and short-term securities, $510 million in current assets, and shareholders’ equity of $328 million. Our backlog remains at record level. These are strong indicators of growth. Of equal importance, is the location and size of the projects themselves as this information indicates the results of our strategic initiatives for enhancing shareholder value.

"Our transition from a merchant bank to an industrial plant engineering and equipment supply company is not yet complete. We are optimistic the final transition will be completed in the fourth quarter of 2007. Our goal is for KHD to be viewed as a near equal to our peer group at that time.