Fax: Mobile: Phone: Close Download image back to top Print
1114770840000 | IR Press Release

Earnings for Q1 2005 set new record/Excellent outlook for 2005 overall

2005 Annual General Meeting of EnBW
Download image

Operating cash flow more than doubled/Substantial debt reduction/Free cash flow up by more than 47 percent/Dividend to increase further

Karlsruhe. At its AGM in Karlsruhe, EnBW Energie Baden-Württemberg AG presented excellent preliminary results for the first quarter of 2005. Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 26 percent to 711.7 million euros during the first three months of 2005, for example. The figure for the same period last year was 564.9 million euros. This means that the EBITDA margin for Q1 2005 was in the order of 25.2 percent, already above the longer-term corridor targeted by EnBW. Earnings before interest and taxes (EBIT) increased by 36 percent to 537.5 million euros in Q1 2005, reflecting the 82.6 percent growth in earnings from continuing activities to 303.3 million euros. This means that, during just the first three months of the current year, EnBW has succeeded in achieving 86 percent of the total figure for the whole of 2004.

"This record result underlines the fact that the policy we have implemented so systematically provides a solid foundation for continuous growth on the earnings front. This renewed earnings strength gives EnBW freedom of action to make important strategic decisions", said Prof. Dr. Utz Claassen, CEO of EnBW.

The operating cash flow has also improved considerably, more than doubling (+108.2 percent) to 513.9 million during the first three months of 2005 compared to the equivalent period last year. During the same period, free cash flow increased by 47.7 percent or 224.5 million euros in Q1 2005 to a new total of 695.4 million euros.

Group debts have also been cut substantially. Compared to the December 31, 2004 figure, net financial liabilities were down by 19 percent or 698 million euros to 2.99 billion euros at the end of the first quarter. Gross financial liabilities have been cut by 12 percent to 5.2 billion euros since year-end 2004. The satisfactory earnings figures also fuelled growth in the balance sheet equity ratio to 11.7 percent as of March 31, 2005 – compared to a figure of 9.7 percent on December 31, 2004.

EnBW also forecasts sales growth for 2005 overall; the company has announced its intention to further increase investment levels and expects to see a renewed improvement in earnings strength on the operating front. Sales revenues in the core business fields of electricity and gas are targeted to rise by 3 percent and 15 percent, respectively, while revenues from near-energy services will probably remain constant. Similarly, EnBW forecasts EBIT growth in 2005 in the core areas of electricity and gas accompanied by little or no change in the field of near-energy services. The internal TOP-FIT cost-cutting and earnings growth programme is also expected to make an even greater contribution to improvements on the earnings front in 2005.

One of the main goals EnBW has set itself for the current financial year is a further improvement in the equity ratio. The Group already succeeded in achieving a significant increase in this ratio in financial 2004. At year-end 2004, the equity ratio was at 9.7 percent (+3.6 percent); after having fallen to 6.1 percent during the period from 2000 to 2003.

In view of the anticipated uptrend in earnings, EnBW intends to make a further substantial increase in the dividend distribution. At the AGM, the Management Board and Supervisory Board of EnBW proposed a dividend of 0.70 euros per participating share for financial 2004, with the aim of increasing the dividend once again by at least 25 percent for financial 2005. From 2005 onwards, the company will target high two-digit percentage growth in the dividend in the order of 20 percent.

"The shareholders should and will also profit from the success and earnings strength of EnBW. It is our endeavour to reward their faith in the company by ensuring our continuing excellent performance and presenting outstanding business results", said EnBW CEO Claassen.

in
Q1 2005
Q1 2004 *
Change in %
Sales revenues
in
mill. €
Q1 2005
2,827.4
Q1 2004 *
2,416.3
Change in %
+ 17
EBITDA
in
mill. €
Q1 2005
711.7
Q1 2004 *
564.9
Change in %
+ 26
EBIT
in
mill. €
Q1 2005
537.5
Q1 2004 *
394.9
Change in %
+ 36
Earnings per share **
in
Q1 2005
1.31
Q1 2004 *
0.75
Change in %
+ 74.7
Operating cash flow
in
mill. €
Q1 2005
513.9
Q1 2004 *
246.8
Change in %
+ 108.2
Free cash flow
in
mill. €
Q1 2005
695.4
Q1 2004 *
470.9
Change in %
+ 47.7
Earnings from discontinuing activities
in
mill. €
Q1 2005
303.3
Q1 2004 *
166.1
Change in %
+ 82.6

* Figures for comparison period adjusted due to new IFRS rules
** from activities to be continued

Fax: Mobile: Phone:
Fax: Mobile: Phone:
Corporate Communications
EnBW Energie Baden-Württemberg AG
Durlacher Allee 93
76131 Karlsruhe
Show video
Show YouTube video?

Please note the privacy policy of YouTube.

Related News