KHD reports strong orders in 2010 as revenues soften

Expects 2011 new orders and revenue to be comparable to that of 2010; sees lower margins in 2011 on price competition.

 

{reg} KHD's revenue fell from Ôé¼ 360 million in the previous year to Ôé¼ 287 million due to the lower order intake during the 2009 economic crisis. KHD nevertheless booked a significant increase in new orders in 2010, up to Ôé¼ 308 million compared to Ôé¼ 123 million the previous year. KHD restructured in March 2010 so that several of the 's legal entities were reported through Q1 under the former parent company. Consolidated net income for the year amounted to Ôé¼ 15.8 million.

 

Management warned that continuing price pressure in the sector will have a greater impact on margins in 2011. For this reason, 2011 margin may be slightly lower than in 2010. However, improvement is expected in 2012

KHD entered two important cooperation agreements during the year; an exclusive long-term global sales agreement was concluded with Weir Minerals in May 2010, which will allow KHD to further expand its roller press technology and market presence in the minerals
processing sector; and a strategic partnership with CATIC.

In September 2010 KHD signed an order of Ôé¼ 85 million for 2 x 10.000 kiln lines with Indian cement producer UltraTech Cement, which is one of the largest cement producers in the world and the largest in India. At the time of signing KHD was the only supplier in India with a reference plant for 10.000 tpd clinkerization in operation.

"We are satisfied with business development in 2010. Our order intake figures show that cement producers are again making larger investments following the economic crisis. The partnerships with Weir Minerals and CATIC also offer us additional international growth potential
that we absolutely aim to exploit," commented Jouni Salo, KHD's CEO.