Excellent results by TTS ,says Johannes D. Neteland, President and CEO 16.02.2007

TTS is paying a dividend of NOK 1 per share for the first time in the company’s history.

TTS increased its turnover in 2006 by 40 percent to NOK 1.604 million. 18 percent of this increase was due to growth following the acquisition of Kocks in Germany, while the organic growth constituted 22 percent. -The prospects for 2007 indicate a similar increase in the established operations, so that turnover this year is likely to approach NOK 2 billion. Furthermore, we are considering other opportunities for growth through new acquisitions, says the head of TTS.

At the end of 2006, the TTS Group had an order backlog of NOK 2.019 million, compared to NOK 1.653 twelve months previously. So far this year, TTS has reported new contracts to a value of NOK 400 million. Including the share of the order backlog for the two joint venture companies in China, TTS has commissions worth NOK 2.6 billion as per January 2007.  -This record high order backlog indicates that also2007 will be an excellent year for TTS. Our re-entry into the offshore cranes market has been very well received, Neteland points out.  

The pre-tax profit for 2006 was NOK 84.5 million, an increase of 50 percent. Net results were NOK 60.5 million; an increase of 50 since 2005. Of this amount, NOK 22.4 million has been proposed allocated as dividend.  

Increased manning as a result of expansion China
TTS has a 50 percent ownership interest in two joint venture companies in China, in addition to a fully owned company exporting marine cranes to other countries in Asia. In total, these companies had a turnover of NOK 330 million in 2006, and profitability has been good. The total order backlog at the end of the year is NOK 670 million.

-The success in China has had a very positive impact on the expansion and employment in our European companies, as we have gained a foothold in a significant market and established a practical division of work that is in accordance with our customers’ requirements. In Norway, during 2006, we increased the manning in our departments in Bergen, Kristiansand and Drøbak by a total of 22 new employees, owing to increased delivery to shipyards in China. We are hoping for the same outcome for our operation in Vietnam, which since its establishment last autumn has entered into contracts worth approximately NOK 200 million. Consequently, we are on the lookout for engineers seeking stimulating tasks in an international group, says Neteland.

Dry Cargo Handling division
Through its activities in the Dry Cargo Handling division, TTS is a leading supplier of cargo handling systems for ships; side loading systems, Ro-Ro equipment, hatch covers and special equipment for yachts and cruise ships.

The Dry Cargo Handling division had a turnover of NOK 728 million in 2006, an increase of 12 percent compared to the same period in 2005. Operating profit before depreciation was NOK 80.3 million, compared to NOK 61.3 at the same time in 2005.

At the end of 2006, the order backlog of the Dry Cargo Handling division was NOK 809 million, compared to NOK 825 million twelve months previously.

- For five consecutive years, the Dry Cargo Handling division has been the largest and most profitable division of TTS. The results are impressive and have been imperative for the groups’ success. In particular, we have succeeded with our delivery of equipment to car carriers: a market that shows no sign of weakening, Neteland points out. 

Through its joint venture company, TTS Hua Hai Ships Equipment Co Ltd., TTS also supplies hatch covers and RoRo equipment to shipyards in China. At the end of 2006, the order backlog totalled NOK 507 million. This order volume comes in addition to TTS’s order backlog.

Marine Cranes division
TTS’ Marine Cranes division develops and delivers marine cranes, and is the world’s leading supplier of hose handling cranes. The division is moreover a major supplier of provisions cranes and loading and discharging crane, and in 2007 resumed production and marketing of cranes for the offshore market. As part of this targeting effort, TTS has aquired the Ålesund-based company, ICD Projects AS, which develops and delivers software and control systems for offshore handling equipment.  

The Marine Cranes division had a turnover of NOK 440 million in 2006, an increase of 42 percent compared to the same period last year. Operating profit before depreciation was NOK 13.5 million, compared to NOK 0.2 million at the end of 2005.

As at the end of 2006, the order backlog of the Marine Cranes division was NOK 600 million, compared to NOK 390 million at the same time in 2005.

Port and Material Handling division
The Port and Material Handling division delivers shipyard production systems and systems for onshore handling of RoRo equipment and containers. During 2006, the division experienced a breakthrough in the market for container terminal systems.

The Port and Material Handling division had a turnover of NOK 179 million in 2006, a 27 percent increase compared to the same period last year. Operating profit before depreciation was NOK 12.6 million, compared to NOK 7 million in 2005.

At the end of 2006, the order backlog of the Port and Material Handling division was NOK 148 million, compared to NOK 72 million at the same time in 2005. 

Deck Machinery division
TTS acquired Kocks GmbH in October of 2005 and established the Deck Machinery division. The division delivers anchors and mooring winches for ships.  

The Deck Machinery division had a turnover of NOK 257 million in 2006. Operating profit before depreciation was a deficit of NOK 4.7 million, compared to NOK 2.5 million in 2005. The deficit is a result of the disposal of old, unprofitable orders, as well as costs incurred in connection with the restructuring of operations. 

At the end of 2006, the order backlog in the Deck Machinery division was NOK 462 million, compared to NOK 366 million twelve months previously. As a result of its association to TTS, the division has gained access to the ship building market in China and Vietnam, and consequently entered into contracts with improved margins. The prospects for 2007 are promising improved, in particular for the second half of 2007, following the disposal of the old order backlog.

About TTS Marine ASA
TTS Marine ASA is an international group that develops and delivers marine equipment. Operations are organised into the following four divisions: Dry Cargo Handling, Marine Cranes, Ports and Material Handling and Deck Machinery. The TTS Group is the world’s second largest supplier within its market segments.

The TTS Group has around 650 employees, with a primary emphasis on engineering skills. The group has 19 companies in Norway, Sweden, Finland, Germany, the Czech Republic, Italy, China, USA, Vietnam and South Korea, including two joint venture companies in China and one in Korea. The company also has a Sales and Representative Office in Vietnam.

TTS Marine ASA’s head office is located in Bergen, Norway, and the company is listed on the Oslo Stock Exchange

Contact persons:
President & CEO Johannes D. Neteland   
Phone: +47 55 94 74 02  Mobile: +47 918 46 906
Email: johannes.neteland@tts-marine.no

Director Olav Bruåsdal    
Phone: +47 55 94 74 25  Mobile: +47 915 61 152
Email: olav.bruasdal@tts-marine.no