In 2009, the TTS Group accumulated an operating loss before depreciation of NOK 84.3 million, against a profit of NOK 145.5 million last year. Extraordinary depreciations have been entered into the accounts, which in addition to weak results resulted in a pre-tax loss of NOK 311.9 million for the company.
As reported to the Oslo Stock Exchange on 19.02, TTS has in its accounts for the fourth quarter of 2009 made considerable appropriations and extraordinary depreciations on the balance sheet. This is mainly related to cancellation of projects, losses on accounts receivable, revised inventory value and increased costs of development. These extraordinary depreciations are in addition to the previous depreciation related to accounts receivable and write-down of goodwill in the Drilling division, as well as write-down of goodwill on a group level. – The effects of the financial crisis have hit TTS hard, and made it necessary to “tidy up” the balance sheet, says Johannes D. Neteland, President & CEO.
In the fourth quarter, the Group’s net interest-bearing debt has been reduced by NOK 100 million. We have implemented measures in our organisation to face the market with the fortitude and cost base required to create positive results, Neteland points out.
TTS has gathered its activities in three operative divisions; Marine, Port and Logistics and Energy. The demand for equipment to the energy sector is uncertain. Consequently, the Board of Directors of TTS have adopted a program for further cost-cutting in Energy.
The TTS Group’s total turnover in 2009 was NOK 3 825 million, a decrease of 8.8 percent since last year. The Group reported a pre-tax loss of NOK 311.9 million, against NOK 36.8 million in 2008. The net result was a loss of NOK 248.5 million, compared to NOK 36.4 million the year before. At the start of 2010, the order backlog of TTS was NOK 4 510 million, against NOK 8 159 million twelve months previously.
Divisional results
Throughout 2009, TTS reported on five divisions.
The Dry Cargo Handling division’s turnover in 2009 was NOK 1 216 million, a decrease of 1.9 percent since last year. The division’s operating profit was NOK 41.7 million, compared to NOK 85 million in 2008. At the end of 2009, the order backlog was NOK 2 441 million, compared to NOK 3 151 million twelve months previously.
The Marine Cranes division’s turnover in 2009 was NOK 1 094 million, a decrease of 1.2 percent since last year. The division’s operating result was a loss of NOK 97.7 million, compared to NOK 41.8 million in 2008. At the end of 2009, the order backlog was NOK 896 million, compared to NOK 2 371 million twelve months previously.
The Port and Material Handling division’s turnover in 2009 was NOK 331 million, a decrease of 5.6 percent since last year. The division’s operating profit was NOK 19.5 million, compared to NOK 32.5 million in 2008. At the end of 2009, the order backlog was NOK 242 million, compared to NOK 326 million twelve months previously.
The Deck Machinery division’s turnover in 2009 was NOK 372 million, a decrease of 16.9 percent since last year. The division’s operating profit of NOK 17.7 million, compared to NOK 22.3 million in 2008. At the end of 2009, the order backlog was NOK 871 million, compared to NOK 902 million at the start of 2009.
The Drilling Equipment division’s turnover in 2009 was NOK 791 million, a decrease of 25.2 percent since last year. The division’s operating result was a loss of NOK 52.3 million, compared to a loss of NOK 24.6 million in 2008. At the end of 2009, the order backlog was NOK 134 million, compared to NOK 1 410 million twelve months previously.
TTS is in a legal dispute with the bankruptcy estate of Ability Drilling ASA, in particular with the subsidiary companies Ability Drilling Malta Ltd and Ability Drilling Malta II Germany Ltd. TTS awaits Stavanger District Court’s appointment of a date for the main hearing. TTS is further working on sale of the land rigs that were under construction at the time of Ability’s bankruptcy.
About TTS Group ASA
TTS Group ASA (former TTS Marine ASA) is an international group that develops and supplies handling equipment for ships, ports and offshore oil and gas installations. Operations are organised into the following divisions: Marine, Energy and Port and Logistics. The TTS Group is among the world’s leading suppliers within their market segments.
The TTS Group has around 1 200 employees (including associated companies), with a primary emphasis on engineering skills. The Group has operative units in 14 countries: Norway, Sweden, Finland, Germany, the Czech Republic, Italy, Greece, China, USA, Canada, Mexico, South Korea, Vietnam and Singapore.
TTS Group ASA’s head office is located in Bergen, Norway, and the company is listed on the Oslo Stock Exchange. Johannes D. Neteland (52) has been President and CEO of TTS since 1998.
Contact:
Johannes D. Neteland,
President & CEO
Tel.: +47 918 46 906
Mette Henriksen,
CFO
Tel.: +47 907 79 360