EANS-Adhoc: Kardex Group / Recession-induced downturn in revenues leads to decrease in earnings

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6-month report

11.08.2009

In the first half of fiscal 2009, the Kardex Group, with its two
divisions Kardex (KRM) (60% share) and Stow (40% share), achieved
consolidated revenues of EUR 177.7 million, representing a
year-on-year decline of 20.0%. Adjusted for currency factors,
revenues were 19.5% lower than in the previous year. The operating
result before interest and taxes (EBIT) totalled EUR 4.9 million,
down 76.3% on the prior-year result. EBIT for the first half of
fiscal 2009 includes special and one-off effects mainly for
reorganizational measures totalling EUR 2.8 million. The EBIT margin
came to 2.8% or, factoring out the special and one-off effects, 4.3%,
as against 9.3% in the first half of fiscal 2008. The result for the
period came to EUR 1.2 million, compared with EUR 13.8 million the
previous year. The free cash flow of EUR 4.5 million was lower than
the previous year´s result of EUR 8.4 million. This allowed a further
reduction in net debt to EUR 23.2 million. The equity ratio increased
to 39.8%.

In the first six months of fiscal 2009, the Kardex Group further
strengthened its balance sheet structure and hence its financial
independence despite the unfavourable economic conditions. The
package of measures implemented by the Board of Directors and
management will bring cost structures into line with the decline in
demand and contribute to ensuring the Kardex Group´s profitability.
The most important measures taken include short-time working hours in
the factories and selective downsizing at distribution companies as
well as restricting investment to key planned strategic projects. In
the USA, production is to be concentrated and modernized at one
location. Both divisions are continuing to implement the SAP projects
launched last year.

As a result of the severe global economic downturn, the consolidated
revenues of the Kardex Group decreased by 20.0% year-on-year to EUR
177.7 million in the first half of fiscal 2009. Countries which felt
the impact of the downturn particularly keenly were Spain, the UK and
Germany in western Europe and Poland, the Czech Republic and Russia
in eastern Europe. China also saw a decline in demand. The US market,
where Kardex USA Inc. profited in particular from government orders
in the office segment, showed a positive trend, as did the Swiss and
Dutch markets. After adjustment for currency translation effects, the
Group's revenues dropped by 19.5%. Kardex USA Inc., first time
consolidated in the first six months of fiscal 2009 after acquisition
in December 2008, and the business area taken over from Element
Storage Systems AS, Norway, consolidated since May 2009, contributed
EUR 7.0 million to Group revenues in the first half of fiscal 2009.
Consolidated bookings declined by 30.3% to EUR 169.7 million;
adjusted for acquisitions, the decrease amounted to 32.8%.

The fall in revenues impacted negatively on earnings. In the first
half of fiscal 2009, the operating result before interest and taxes
(EBIT) declined by 76.3% to EUR 4.9 million (previous year: EUR 20.7
million). The EBIT margin came to 2.8% as against 9.3% in the first
half of fiscal 2008. The operating result for the first half of
fiscal 2009 includes special and one-off effects for reorganizational
measures amounting to EUR 1.8 million. As early as the second half of
fiscal 2009, these adjustments will generate savings. In addition,
various projects gave rise to one-off costs of EUR 1.0 million also
impacting the operating result. After factoring out special and
one-off costs, EBIT stood at EUR 7.7 million or 4.3% of revenues.

The Kardex (KRM) division saw a decline in revenues of 13.1% to EUR
106.0 million (first half of fiscal 2008: EUR 122.0 million), EBIT
came to EUR 3.5 million (EUR 12.9 million) and the EBIT margin to
3.3% (10.6%). Adjusted for special and one-off effects, this division
achieved EBIT of EUR 5.0 million and an EBIT margin of 4.7%. Bookings
received by the Kardex division were down by 28.8% to EUR 91.9
million (EUR 129.1 mil¬lion). As of 30 June 2009, order intake came
to EUR 52.7 million, 31.7% below the previous year´s figure. At EUR
72.0 million, the Stow division posted revenues 28.6% below the
comparable figure for the previous year (EUR 100.8 million). EBIT
came to EUR 2.9 million (EUR 8.6 million), with an EBIT margin of
4.0% (8.5%). Adjusted for special and one-off effects, the Stow
division achieved EBIT of EUR 4.2 million and an EBIT margin of 5.8%.
Bookings amounted to EUR 77.8 million, down 31.9% on the first half
of fiscal 2008. As of the end of June 2009, order backlog amounted to
EUR 37.3 million, 36.0% below the prior-year figure.

Owing to the above-mentioned factors, the Kardex Group´s result of
EUR 1.2 million for the period under review was well below the figure
of EUR 13.8 million for the first half of fiscal 2008. At EUR 4.5
million, the free cash flow in the first half of fiscal 2009 remained
below the previous year's result (EUR 8.4 million) thanks to the
revenue-related reduction in net current assets. In the first half of
fiscal 2009, the Kardex Group invested EUR 2.6 million primarily in
property, plant and equipment as well as software, and spent a
further EUR 2.6 million on the acquisition of net assets of Element
Storage Systems AS, Norway.

Net debt followed a positive trend, declining from EUR 25.4 million
at the end of fiscal 2008 to EUR 23.2 million. The equity ratio thus
increased to 39.8% as of 30 June 2009 (31 December 2008: 38.5%).
Since the end of fiscal 2008, the gearing (debt-to-equity ratio) has
decreased slightly from 23.7 to 23.5%.

In the second half, the functional organizational structure of the
Kardex (KRM) division, one of the world leaders in dynamic storage
and retrieval systems, is to be structured as those of the Stow
division. Here, the aim of the Board of Directors and the Executive
Board is to push ahead swiftly and systematically with the strategic
thrusts in this division and to step up market expansion -
particularly in Asia and the US - and the service business as well as
to promote an acceleration of growth. The associated costs will
amount to around EUR 1.0 million.

The Kardex Group is confident that the measures taken have ensured
the company's profitability in the cur¬rent challenging economic
situation. Customer reticence and the negative trend in evidence in
many markets make it impossible at present to provide reliable
forecasts for the medium or long-term future. If the decrease in
revenues and results persists over the months ahead, the Kardex Group
will take additional measures in both divisions with a view to
further reducing capacity and costs, while giving top priority to
safeguarding know-how. With a sound balance sheet, the Kardex Group
has sufficient financial latitude to implement its strategic projects
and benefit from a recovery in demand on a sustainable basis.

The detailed Interim Report 2009 is available at www.kri-group.com.

Agenda
16 March 2010 Publication of full-year 2009 results
27 April 2010 Annual General Meeting 2010

Kardex Group Australia, Austria, Belgium, China, Cyprus, Czech
Republic, Finland, France, Germany, Hungary, India, Ireland, Italy,
Malaysia, the Netherlands, Norway, Poland, Portugal, Russia,
Singapore, Slovakia, Spain, Sweden, Switzerland, Turkey, UK, USA.

Disclaimer This communication contains statements that constitute
"forward-looking statements". In this communication, such
forward-looking statements include, without limitation, statements
relating to our financial condition, results of operations and
business and certain of our strategic plans and objectives. Because
these forward-looking statements are subject to risks and
uncertainties, actual future results may differ materially from those
expressed in or implied by the statements. Many of these risks and
uncertainties relate to factors which are beyond Kardex´s ability to
control or estimate precisely, such as future market conditions,
currency fluctuations, the behavior of other market participants, the
actions of governmental regulators and other risk factors detailed in
Kardex´s past and future filings and reports and in past and future
filings, press releases, reports and other information posted on
Kardex Group companies´ websites. Readers are cautioned not to put
undue reliance on forward-looking statements, which speak only of the
date of this communication. Kardex disclaims any intention or
obligation to update and revise any forward-looking statements,
whether as a result of new information, future events or otherwise.

end of announcement euro adhoc
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ots Originaltext: Kardex AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Jos De Vuyst, Chief Executive Officer

jos.devuyst@kri-group.com

Tel. +41 (0)44 386 44 15

Gerhard Mahrle, Chief Financial Officer

gerhard.mahrle@kri-group.com

Branche: Heavy Engineering
ISIN: CH0018263415
WKN: 1826341
Index: SPI, SPIEX, SSCI
Börsen: SIX Swiss Exchange / regulated dealing