Annual Report 2007 - Muehlhan AG

ManaGeMent divisions share group ManageMent report Group Consolidated FinanCial stateMents
our uS subsidiary company Muehlhan Marine inc. (MMi)
Houston, texas, was not able to make use of anything
even close to its production capacity, and had to reduce it
by cutting jobs to a considerable extent (contribution
margin: Eur -3.0 million). furthermore, there were
project difficulties for Certified Coatings Company (CCC)
on a bridge renovation contract in the uSa (contribution
margin: Eur -2.9 million); the success of this project was
negatively affected to a considerable extent as a result of
– in our view – deliberately false information in the context
of a corporate takeover. in addition, we experienced
significant competition for customers and employees
from a former managing director at our uS subsidiary
company Meaux, which is active in the offshore business.
the burden on Group earnings as a result of the uS
activities was a total of Eur 7.3 million in Ebit for the fiscal
year. in the previous year, the uSa was still able to make
a positive contribution of Eur 1.9 million.
in the North Sea business, a retroactive reduction in contract
volume as well as a month-long delay in the commencement
of a project for maintenance work on oil
platforms for an international oil company, led to a shortfall
in the recovery of full costs for our offshore subsidiary
Muehlhan Surface protection ltd., aberdeen, Great britain
(MGb). We had to abandon contracts involving a loss in
our Norwegian subsidiary company Muehlhan Norge aS
(MNo). Contributions from both companies added up to
Eur -1.9 million (previous year: Eur -2.5 million).
a marked currency exchange rate increase of the Euro
also put pressure on earnings (Eur -2.1 million).
the write-off with respect to our Chinese subsidiary company
MCN by the seller, a company affiliated with our chairman
of the Supervisory board dr Wulf-dieter H. Greverath,
led to an improvement in earnings of Eur 2.0 million. the
write-off became necessary due to the general regulatory
conditions in the Chinese legal environment.
results oF priMary and
secondary reporting (overview)
in kEur
External sales
revenue EBIT *
2007 2006 2007 2006
Europe 156,843 131,132 14,004 11,234
america 26,730 44,753 -7,280 2,127
asia 12,399 8,152 1,952 -840
Central division /
consolidation 120 352 -5,815 -4,417
Total 196,092 184,389 2,861 8,104
* profit from operations
rounding differences may occur.
in kEur
External sales
revenue EBIT *
2007 2006 2007 2006
Ship Newbuilding 65,710 71,564 2,561 3,247
Ship repair 45,086 37,334 6,695 4,250
oil & Gas offshore 13,647 17,616 -2,605 1,868
industry Services /
others 71,529 57,522 2,025 3,156
Central division /
consolidation 120 352 -5,815 -4,417
Total 196,092 184,389 2,861 8,104
* profit from operations
rounding differences may occur.
US activities have a significant negative
effect on 2007 business development
there is a lack of significant Ship Newbuilding contracts
at the two shipyard locations in San diego, California, and
avondale, louisiana. a series of nine large tankers was
finished in 2007 after a total construction time of three
years. New contracts for similar commercial vessels were
not available. We therefore had to reduce our staffing
level early in the year at both locations. in the industry
sector, a major maintenance contract was put out for bids
in the first half of 2007 and awarded to a competitor.
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