KHD reports higher earnings

KHD reports higher earnings
Published: 15 August 2006

KHD Humboldt Wedag International Ltd announces results for the quarter and six months ended June 30, 2006. The quarter has seen the completion of the majority of projects for the final phase of KHD’s transition to an industrial plant engineering and equipment supply company. This transition began with the distribution of a substantial portion of the financial services operations, Mass Financial Corp, to its shareholders during the first quarter of the year. The second quarter, ended June 30, 2006, is its first full operating quarter since the distribution.

For the first six months of 2006, industrial plant engineering and equipment supply revenues increased by more than 18 percent, to $150.1m from $128.3m in the first half of 2005. EBT for the industrial plant engineering and equipment supply services segment was $14.7m, an increase of 28 per cent over the corresponding period of 2005.

Order intake for the three months ended June 30, 2006 was $289.2m, an increase of 151 per cent over the same quarter of 2005. Of this total, 35 per cent came from the emerging Asia/Pacific region, 35 per cent from the Americas and 26 per cent from Europe.

Order backlog for the second quarter of 2006 was $563.9m, an increase of 83 per cent over the second quarter of 2005.

CEO Jim Busche commented, "The upward trend of order intake, backlog and earnings has continued through the second quarter. The improving leading indicators mirror the message we hear constantly from our customers, i.e., that the marketplace is receptive for our technically advanced, quality products at competitive pricing. This is further a reflection of the robust rates of growth in the economies of Asia, Russia, South America, Europe and the USA, as infrastructure continues to expand and modernize to accommodate requirements in travel, communications, construction, and the delivery of services. The demand for cement, iron, coal and other minerals shows no sign
of slacking."