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Results Second Quarter 2004 and 6 months ended June 30, 2004

Results Second Quarter 2004 and 6 months ended June 30, 2004. Martin De Prycker CEO July 27, 2004. Operational results 2Q 2004 and 1H 2004. Results per quarter. in € million. Overall comments 2Q 2004 (1).

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Results Second Quarter 2004 and 6 months ended June 30, 2004

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  1. Results Second Quarter 2004 and 6 months ended June 30, 2004 Martin De Prycker CEO July 27, 2004

  2. Operational results 2Q 2004 and 1H 2004

  3. Results per quarter in € million

  4. Overall comments 2Q 2004 (1) • Good order intake at € 178.2 million, a YoY growth of 5.6%, 8.6% at unchanged exchange rates • Sales growth of 8.6%, 11.5% at unchanged exchange rates • Good book-to-bill ratio of 1.04 increased the order book for the 6th consecutive quarter • Gross profit margin stabilized at 44.1%, below 2Q03, due to changing product mix and pricing pressure in some of our markets • EBITA at 10.9%, remained stable vs 2Q03 despite a 5.7% weaker dollar • Currency fluctuation negatively impacts EBITA YoY by € 0.7 million

  5. Overall comments 2Q04 (2) • Operational profit (EBITA) margin remained unchanged YoY, despite a higher sales volume due to a changing product mix and higher operational costs • Product mix: margins on LED below Barco’s average, but continuously improving • Recurring operational cost increases: higher number of personnel and salary adds approximately € 3 million • Non-recurring operational cost increases: provisions of € 2 million

  6. Evolution of results per division 2Q03 2Q04 * Excludes results from Machine Vision, divested in July 2003

  7. BarcoView (1) in € million

  8. BarcoView (2) • Orders • Very good book-to-bill ratio at 1.1 • Orders in Defense & Security improved from 2Q03 levels • Orders in Medical remain high • Strong orders in Traffic Management, but comparable with last year • Sales • Strong sales volume in Medical confirms market leadership, although lower than 1Q04 levels • Defense deliveries slightly higher than in 2Q03 • Traffic Management at the same level as in 2Q03 • Margins • Good EBITA margin of 13.6%, thanks to high gross profit margin of 47,4% • New products introduced • LCD for mammography • On Board Information terminal (OIT) for A380 • Micro Vista: deployable rugged workstation • Modular Rugged Display Station for processing and display in high resolution • Rugged flat panel display for night bridge applications

  9. Barco Media & Entertainment (1) in € million

  10. Barco Media & Entertainment (2) • Overall improvements versus last year driven by organic growth and acquisitions in the US and China • Orders • Book-to-bill ratio at 1.02 • Strong orders in Media, especially in China and first successes in North America in sports market, especially in NBA • Successes in Events worldwide, including Folsom • Digital Cinema continues to show positive signs for start in 2005, with good orders coming in from NA, Europe and Asia • Sales • Sales increased by 40.2% YoY • Good Media sales but with a weaker profit margin • Extremely good Events sales worldwide, helped by Euro 2004 and Olympic Games • Margins • Gross profit margin stable at 37.9% QoQ, but better than in2Q03 • EBITA margin at 6.5%, improved vs last year as a result of good profit in Events, but margin still not at target level due toinvestments in Media and Digital Cinema • New products introduced • Media: SLite 22 • Events: “Encore” controller and SLM R12

  11. Barco Presentation & Simulation (1) in € million

  12. Barco Presentation & Simulation (2) • Orders • Order intake grew by 21% YoY; book-to-bill at 0.96 due to high sales volume in 2Q04 • High order intake in Virtual Reality and Simulation • Sales • Presentation • Stable sales vs 2Q03 and 1Q04 • Simulation • Sales strong in Security applications • Good sales in museums and planetariums • Margins • Gross profit margin at 48.2%, above 1Q04 level,but weaker than 2Q03 • Good EBITA margin at 12.8% vs 5.7% in 1Q04, but negatively impacted by low margin in Presentation • New products introduced • High resolution projector with HD format at Infocomm will improve our position in top-end of the presentation market

  13. Barco Control Rooms (1) in € million

  14. Barco Control Rooms (2) • Orders • Continued strong growth in orders vs 2Q03: +18.1% compared with 2Q03, continuing to increasethe order book • Book-to-bill at 1.15 very high, with successes in North America, Asia and Middle East • Sales • High growth worldwide of 33.7% • Good worldwide sales in all segments, particularly strong in Traffic & Surveillance • Strong inroads into Security applications in the US and Europe • Margins • Gross profit margin at 50.5%, slightly better than 2Q03, despite pricing pressures • EBITA margin very high at 14.4% • New products introduced • Introduction DLP engine DR120 for replacement market • Announced RGB frame grabber at Infocomm exhibition

  15. BarcoVision (1) in € million * Excludes Machine Vision, divested in July 2003

  16. BarcoVision (2) • Sales & Orders • Book-to-bill ratio at 0.93 confirms weaker textile market, although July shows some pick up, thanks to differentiating products (PP sensors and Cyclops automatic inspection system for more complex fabric styles) • Results do not include Machine Vision, divested in July 2003 • Margins • Gross profit margin improved sequentially to 45.7% from 43,7% • EBITA margin lower than usual at 10% due to low volumes, but still good reflecting cost control

  17. Barco Manufacturing Services (1) in € million

  18. Barco Manufacturing Services (2) • Sales & Orders • Sales & orders increased driven by a higher external order volume and particularly as a result of the internal reorganization • Margins • EBITA margin declined to –0.6% reflecting the increase in personnel in the Czech Republic and temps in Belgium • These additions in personnel resulted in a temporary decline in efficiency

  19. 1H03 1H04 Geographical breakdown of sales

  20. Regional comments first half 2004 North America • Flat sales in €, due to the 10% depreciation of the USD • Growth in North America in most markets, especially in Control Rooms, Media, Events and Medical Asiapac • Overall 30% growth in Asiapac • China’s performance remains strong, mainly in Control Rooms, Simulation, Media and Events • Double digit growth in South East Asia, Korea and India EMEA • Flat sales YoY, but with regional/market differences • Growth for Control Rooms, Simulation, Media and especially Events • France and Germany weaker than 2003, UK stronger and in particular Spain and Italy doing well • Central & Eastern Europe strong in Control Rooms • Middle East strong in Media

  21. Key figures Income Statement 2Q04

  22. Key figures Balance Sheet

  23. Expectations 3Q04 • Sales target: between € 150 – € 160 million, representing a YoY growth of around 7% at the middle of the range • EBITA of between € 10 and € 15 million, YoY growth of around 25% • Current EPS between € 0.63 and € 0.94 versus € 0.61 in 3Q03

  24. Questions & Answers

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