Quarter 3 2010 Results
Key Issues 3Q 2010
- Kverneland Group launched a complete new baler and drum mower line early September.
- Furthermore, AGCO and Kverneland Group have agreed to form a new cooperation in which AGCO has appointed Kverneland Group as the selling entity for Massey and Fendt round balers to AGCO dealers in France, Germany, UK, Ireland, Spain and Poland.
- Order intake until early September was moderate but then picked up considerably and ended with EUR 68.0 Mill in Q3 2010 vs. EUR 46.1 Mill in Q3 2009 (+48%). Compared to previous years the pre-season campaign was delayed, which is linked to the presentation of the new products early September.
- The quarter ended with net sales of EUR 71.9 Mill compared to EUR 77.1 Mill one year ago.
- Improved gross margins (+4.2%), well adjusted production capacities and improved warranty cost of EUR 1.0 Mill resulted in an improved EBITDA of EUR -6.4 Mill in Q3 2010 vs. EUR -8.3 Mill in Q3 2009 (+22.9%).
- EBITDA was again affected by unfavourable currency exchange rates (primarily NOK to EUR); total negative impact in Q3 amounts to EUR 0.9 Mill.
- Inventories remain on a historical low level (increase of EUR +1.0 Mill).
- Interest-bearing debt were further reduced by EUR 4.5 Mill through buying back own bonds.
- According to international surveys market shares are kept in our relevant markets.
Key Issues year-to-date 2010
- Accumulated order intake in 2010 is EUR 260.6 Mill vs. EUR 204.1 Mill in 2009, which is 28% higher than same period 2009.
- EBITDA of EUR 6.6 Mill exceeds last years EBITDA of EUR 5.6 Mill by 18% although the operating revenues decreased by EUR 50.6 Mill (-15%) compared to the first nine months of last year.
- Strongly reduced capacity cost (EUR -10.0 Mill), moderate price development of main input factors and also continued warranty cost improvements of EUR 2.1 Mill are the key drivers to EBITDA.
- Furthermore, the EBITDA was harmed by the unfavourable Euro exchange rates which account to EUR -4.0 Mill. These negative currency effects on gross margin and capacity cost, and thus on EBITDA, are to a large extent compensated by exchange gains of EUR 3.4 Mill.
- Net working capital was reduced by EUR 58.8 Mill from Q3 2009 to Q3 2010 (-32%).
- The equity ratio improved from 31.0% at year end 2009 to 34.1% at the end of Q3 2010.
- After the end of Q3 order intake has picked up strongly. Orderbook at the end of October exceeds last year’s order book by 55%.