Steady turnover and profit development at Hydratec NV
Year to date turnover from continued operations increased as compared to same period last year. Because of a favorable productmix gross margin also increased. These compensated for the higher operating costs and therefore resulted in higher operating profits.
Agri & Food Equipment: The political situation in Russia and the Ukraine caused fewer project orders in that important region. But this was more than compensated by new orders in the Middle East, where Pas Reform won some important new projects and thereby increased its market share. Also in the USA Pas Reform enhanced its market position. NatureForm Hatchery Technologies, a Pas Reform joint-venture established early this year, won an important project in that market. This is a significant basis for the Pas Reform’s strategy to structurally improve its market position in the US. LAN delivered some projects at lower margins, which caused a drop in operating result in spite of higher turnover. However LAN has a solid project orderbook with better margins, which should result in improving the margins.
Plastics: Euro Mouldings continued its turnover increase. Because raw material pricing was very stable the margins improved resulting in higher operating result. Timmerije benefitted from new orders to increase its turnover and results. Total turnover and results of the Plastics were higher.
Outlook: All our operating companies have solid orderbooks and based on that we expect a steady increasing turnover and results in line with of those of the passed periods this year. Of the MMI activities (Danielson), which were sold in May, only the net proceeds of the transaction will contribute to the consolidated financials. Therefore the overall turnover and the operating result will be lower as compared with last year. But the extraordinary profit will result in a substantially higher net result for 2014 vs. last year.
Profile Hydratec Industries NV (Hydratec)
Hydratec is an industrial holding company with companies engaged in the following sectors:
- Design, development and production of Agri & Food Equipment by Pas Reform Hatchery Technologies (Zeddam, Holland) en LAN Handling Systems (Tilburg, Holland)
- Design, development and production of plastics-parts and-packaging by Timmerije (Neede, Holland) and Euro Mouldings (Nijverdal, Holland)
Hydratec Industries NV is listed at NYSE Euronext Amsterdam NV (ISIN NL0009391242, ticker: HYDRA.).