Ad hoc release in compliance with § 15 WpHG
Karlsruhe, 31 October 2012.
By winning two major projects, init innovation in traffic systems AG achieved a record amount in incoming orders of over EUR 90 million in the third quarter of 2012. With this, the orders on hand as of the end of September increased by nearly 50 percent compared with the previous year to around EUR 185 million (previous year: EUR 124 million).
During the first nine months, the init group recorded a rise in sales of around 17 percent to EUR 64.4 million due to the strong growth in the first half year (Q1-Q3 2011: EUR 55.2 million). 76.5 percent of this amount (Q1-Q3 2011: 63.5 percent) were attributed to international business, mostly in North America. Due to technical project delays in individual orders, the generated revenues of EUR 22.4 million fell slightly below the previous year’s level (Q3 2011: EUR 23.7 million).
This caused the earnings before interest and taxes (EBIT) of EUR 10.7 million after the first nine months to remain slightly below last year’s result (EUR 11.4 million). However, it must be taken into account that a positive one-off special effect for 2011 occurred with the reversal of the provisions for risk for Dubai. Furthermore, increased internationalisation of the sales division, the development of new markets, the increasing number of complex international tenders and the establishment of new subsidiaries resulted in additional costs during the reporting period, while the impact on earnings of these measures will only unfold in the medium term.
A higher tax rate pushed the net profit of EUR 7.2 million as of the end of September below the value of the previous year (Q1-Q3 2011: EUR 8.3 million). Earnings per share amount to EUR 0.74 (Q1-Q3 2011: EUR 0.83). Due to the ongoing major projects in the Middle East, however, tax-free income will still be recorded in the fourth quarter.
Unless any unexpected events occur and provided the project delays can be caught up, we should achieve our growth target for 2012 with revenues of around EUR 95 million and an operating result (EBIT) of surely EUR 19 million in 2012. Experience has shown that the fourth quarter usually generates the highest revenue for init.
As the development of orders shows, the market for traffic telematics is currently characterised by a large number of new international tenders for major projects. The bulk of init’s business is in comparatively long-term projects, which is why we still see good growth opportunities for our company in the long run. For the future we are also expecting positive impulses from Asian countries. We have established a subsidiary in Singapore in order to be present locally and to opportunely forge the necessary customer contacts. This subsidiary will commence operations shortly and participate in upcoming tenders.
The detailed interim report of init innovation in traffic systems AG for theperiod ending on 30 September 2012 will be published on 9 November 2012.
