After the first half of 2005, TTS Marine ASA’s operating profit before depreciation totalled NOK 38.7 million, compared to NOK 15.3 million for the same period in 2004. Turnover increased by 37 %. The order backlog has continued its growth.
At 30 June 2005, the order backlog was NOK 1 194 million, which is an all-time high. – We are already seeing very positive effects on both the top and bottom lines from the acquisitions we made last year. Collectively, we mark up records for both turnover, results and order intake, says Johannes D. Neteland, president and CEO.
The companies in the TTS Group had a combined turnover of NOK 504.6 million in the first half of 2005, compared to NOK 368.2 million in the first half of 2004. The group’s operating profit before depreciation was NOK 36.1 million, compared to NOK 12.9 million at 30 June 2004. Pre-tax profit at 30 June 2005 was NOK 35.0 million, compared to NOK 11.8 million at the same time last year.
At the end of the first six months, the order backlog was NOK 1 194 million. This means that, for the sixth quarter in succession, TTS can report of the largest order backlog in the history of the company. Twelve months ago the backlog was NOK 609 million. At the end of 2004, the order backlog had increased to NOK 941 million and at the start of the second quarter it was NOK 1 104 million.
Marine Equipment
In the Marine Equipment area, which covers cranes and cargo handling equipment, operating profit for the first six months was NOK 28.1 million from a turnover of NOK 431.5 million. After the first half of 2004, the operating profit was NOK 10.7 million and turnover NOK 328.7m. The order backlog as at 30 June 2006 was NOK 1 128 million, compared to NOK 580 million at the same time in 2004. At the start of the second quarter, the order backlog was NOK 1 005 million.
The positive market development for the Dry Cargo Handling division continued in the second quarter. Activity has been high, especially for the companies in Sweden and Germany. The company in Norway, which specialises in side-loading systems, expects to land contracts in the third quarter.
Through the joint venture company TTS Hua Hai Ships Equipment Co Ltd., TTS is also supplier of hatch covers and RoRo-equipment to shipyards in China. The company has produced good results over several years, and at 30 June 2005 the order backlog came to NOK 369 million. This backlog comes in addition to TTS’s other order backlog.
The activity in the Marine Cranes division has also been at a high in level in the second quarter. TTS-LMG Marine Cranes in Germany has shown a very positive development. TTS Bo Hai Machinery Co Ltd, which TTS owns jointly with the Chinese government-owned company DNS, started operations in Dalian in the second quarter. The company focuses on production and sales of cranes to ships built at Chinese shipyards. The wholly-owned TTS Marine Shanghai Co Ltd shall in future be in charge of marketing, production and follow-up of deliveries to ship-owners and shipyards in Asia outside of China. Activity in the company is at a high level.
Material Handling Equipment
In the Material Handling Equipment division, results for the first half of 2005 have been excellent. Operation profit as at 30 June 2005 was NOK 8.3 million, from a turnover of NOK 72.6 million. For the first six months of 2004, operating profit was NOK 2.2 million and turnover NOK 39.2 million. In particular TTS Liftec in Finland, which became part of the TTS Group in December last year, contributed to this growth.
The order backlog at the end of the first half of 2005 was NOK 66 million, compared to NOK 29 million at the same time in 2004. At the start of the second quarter the order backlog was NOK 99 million.
- The operation of the TTS Group is developing positively, with regard to both turnover and results, and the market for our products and deliveries continues to remain favourable. We are holding a steady course towards our goal of an annual turnover of more than NOK 1 billion. Margins will be somewhat lower in the second half year, as deliveries will have a slightly different product mix than in the first half of the year. At the same time, we still have potential for improvement in results in some of the business areas, emphasises Johannes D. Neteland.
About TTS Marine ASA
TTS Marine ASA is an international group that develops and delivers marine equipment. Operations are organised into the following three divisions: Marine Cranes, Dry Cargo Handling and Ports and Material Handling. The TTS Group is the world’s second largest supplier within its market segments.
TTS has around 400 employees, with a primary emphasis on engineering skills. The group has companies in Norway, Sweden, Finland, Germany, USA and China, and has offices in South Korea.
TTS Marine ASA’s head office is located in Bergen, Norway, and it is listed on the Oslo Stock Exchange.
Contact persons:
President & CEO Johannes D. Neteland
Phone: 55 94 74 02 Mobile: 918 46 906
Email: johannes.neteland@tts-marine.no
Director Olav Bruåsdal
Phone: 55 94 74 25 Mobile: 915 61 152
Email: olav.bruasdal@tts-marine.no