After the first three months of the year TTS Marine ASA's operating profit before depreciation totalled NOK 19.4 million compared with NOK 6.3 million for the same period in 2004. This is the best ever quarterly result for TTS.
After the first three months of the year TTS Marine ASA's operating profit before depreciation totalled NOK 19.4 million compared with NOK 6.3 million for the same period in 2004. This is the best ever quarterly result for TTS. Turnover increased by 36 per cent and order intake continue to be strong. During the first quarter the order reserve increased by NOK 164 million to NOK 1,104 million, which is a new record. "We are holding a steady course towards our goal of an annual turnover in excess of NOK 1 billion and the best bottom line ever," says Johannes D. Neteland, president and CEO.
The companies in the TTS group had a combined turnover of NOK 250.3 million in the first quarter compared to NOK 184.9 million the previous year. The group's operating profit before depreciation was NOK 18.0 million compared to NOK 5.1 million at the end of the first quarter of 2004. The pre-tax profit was NOK 17.7 million compared to NOK 4.7 million the previous year. The profit after tax was NOK 12.6 million compared to NOK 3.8 million after the first quarter of 2004. The order reserve in the group was NOK 1,104 million at the end of the quarter compared to NOK 532 million the previous year.
In the first quarter operating profit before depreciation was 26 per cent better than in the fourth quarter of 2004, which until now is the best quarterly result TTS has achieved. "We are already seeing very positive effects on both the top and bottom lines from the acquisitions we made in Germany and Finland last autumn," says Neteland.
Ships equipment
In the Ships equipment area, which covers marine cranes and cargo handling equipment, operating profit in the first quarter was NOK 16.6 million on a turnover of NOK 217.7 million compared to NOK 3.5 million and NOK 164.8 million, respectively, in the first quarter of 2004. As at 31 March the order reserve totalled NOK 1,005 million compared with NOK 487 million at the same time in 2004. There has also been a very satisfactory volume of new orders since the end of the first quarter.
The positive market conditions continued in the first quarter for the Dry Cargo Handling Division. For TTS Ships Equipment GmbH in Bremen this led to a high level of new hatch cover contracts, including steel supplies. The high portion of steel in the quarter’s order intake has increased the volume of orders, but led to lower margins in the contracts. The market outlook for the division is still promising.
Operations and results in the Marine Cranes division developed in line with expectations for the first three months of the year. TTS-LMG Marine Cranes in Lübeck has had a very strong start and has established a close cooperation with TTS Ships Equipment in Bremen. TTS has a broader and heavier presence in the German market and the potential is expected to be considerable.
TTS owns 50% of TTS Hua Hai Ships Equipment Co. Ltd., a joint-venture company in Shanghai that supplies hatch covers and RoRo equipment to shipyards in China. The company's operating profit in the first quarter was NOK 4.0 million and new orders at the end of the quarter totalled NOK 330 million compared with NOK 237 million at the beginning of the year. This order backlog comes in addition to TTS's new orders of NOK 1,104 million.
At the beginning of the year TTS Bohai Machinery Co. Ltd. was set up as a joint-venture company between TTS and Dalian New Shipbuilding Heavy Industry Co. . The company is located in Dalian and will supply cranes to ships built at shipyards in China. The company was registered in April and operations will commence in new buildings during the second quarter.
Material handling equipment
As of 2005 the material handling area covers TTS Handling Systems in Norway and TTS Liftec in Finland. The area includes deliveries of equipment to terminal systems on land. Operating profit after three months of operations totalled NOK 1.7 million from a total turnover of NOK 32.5 million. During the first quarter of 2004 operating profit was NOK 1.7 million from a turnover of NOK 19.9 million.
The order situation for TTS Handling Systems has been poor, but in March the company received two large contracts. For TTS Liftec operations and results were very satisfactory. Consolidated new orders amounted to NOK 99 million at the end of the quarter. As at 31 March 2004 new orders totalled NOK 45 million.
About TTS Marine ASA
TTS Marine ASA is an international group that develops and supplies marine equipment. Operations are divided into three divisions: Marine Cranes, Dry Cargo Handling and Material Handling. The TTS group is the world's second largest supplier within its market segments.
TTS has approximately 370 employees, with a considerable emphasis on professional engineering expertise. The group has companies in Norway, Sweden, Finland, Germany, China and the USA and has offices in South Korea.
TTS Marine ASA has its headquarters in Bergen, Norway, and is listed on the Oslo Stock Exchange.
Contact persons:
Johannes D. Neteland,
President and CEO
Tel.: (+47) 55 94 74 02
Olav Bruåsdal,
Financial director
Tel.: (+47) 55 94 74 25