TTS Group achieves an operating profit (EBITDA) of MNOK 0.6 in Q1 2015
TTS Group achieved an operating profit (EBITDA) of MNOK 0.6 in Q1 2015 compared to a loss of MNOK 38.4 for the same period in 2014. Total revenues were MNOK 593, up MNOK 40 from Q1 2014.
- The industry has had a tough Q1, however from our order intake, we can conclude that our market position is further strengthened, says Björn Andersson, CEO of TTS Group ASA.
- The result is as expected for a quarter characterized by challenging conditions in the offshore market, in combination with lower activity in some marine segments as a result of normal seasonal fluctuations. We're still not where we should be with regard to profitability, but overall we came out stronger from a quarter proved very challenging for many players in the industry, says Andersson.
- We see positive effects of the continuous work we do to cut costs, and we get a good response to our new market strategy. We note otherwise a very positive order intake in April, with contracts for offshore AHC cranes of MNOK 100 and a flying start for our new 50/50 company in China, which together with one of our existing joint venture has received contracts on equipment packages for a series of heavy lift vessels, consisting of heavy lift cranes, hatch covers and winches for a total value of 270 million.
The result developed positively in all business units in Q1 compared to the same period in 2014. Revenues also increased in all units excluding Offshore, which is characterized by a declining market, and Container / Bulk / Tank, which is still affected by low freight rates in some segments and overcapacity after the 2014 bulk boom. The greatest increases were in the Multipurpose / General Cargo unit, where revenue increased from MNOK 28 in Q1 2014 to MNOK 94 in Q1 2015.
Overall order intake for the Group excl. the Chinese joint venture companies, was MNOK 301 in Q1, a sharp decline from 645 million in 2014.
- Weaker order intake in the offshore is as expected; otherwise we believe the decline in our other segments largely is due to random fluctuations when the big orders are coming in. We have no reason to believe that the low order intake in Q1 reflects certain trends in the market, which the large orders we received in April also underpins, says Andersson.
Order intake in the Chinese joint venture companies remains strong, although there was a decrease from MNOK 460 in Q1 2014 to MNOK 268 this year. The Chinese companies provide a EBITDA contribution of MNOK 8.4 in Q1 2015.