Six months into 2011, the TTS Group ASA reported earnings before depreciation of NOK 69.3 million, compared to NOK 22.7 million in the same period of 2010. -This progress is owing to our reversal of the negative results of the Energy division. A brisk order intake has lead to increased levels of activity in Kristiansand as well as in Bergen, and this entails a need for increased manning in both these places, says Johannes D. Neteland, President and CEO.
The TTS group’s total turnover in the first half of this year was NOK 1 797, a 7 percent increase from the same period last year. The group reported a pre-tax profit NOK 6.7 million, compared to pre-tax loss of NOK 48.3 million after the first six months of 2010. The group’s net result was a loss of NOK 10.5 million, compared to a loss of NOK 28.9 million after the first six months of the previous year.
TTS’ order backlog at the end of the first half of 2011 was NOK 4 087 million, compared to NOK 3 789 million at the same time last year and NOK 3 549 million at the end of the first quarter this year. – We are really pleased to see our order backlog increasing, once again, for the first time since the economic crisis three years ago, emphasises Neteland.
The group’s order intake in the first half of 2011 is NOK 2 200 million, of which NOK 1 588 million worth of orders was placed in the second quarter. After the second quarter, the Energy division has reported new orders to a total value of approximately NOK 900 million.
- During the summer we finally experienced a breakthrough for our drilling packages in both the Chinese and Brazilian markets. This is immensely satisfactory, says Neteland
Steady course for the Marine division
The Marine division of TTS supplies equipment for cargo handling onboard vessels. Turnover in the first half of 2011 was NOK 1 179, a 6 percent decrease compared to the year before. The division reported an operating profit before depreciation of NOK 79.7 million, compared to NOK 68.6 million after the same period in 2010.
The Marine division’s order backlog at the end of the first half of 2011 was NOK 2 683 million, compared to NOK 3 166 million at the same time in the previous year and NOK 2 948 million at the end of the first quarter this year. These figures include 50 percent of the order backlog in the joint ventures TTS Hua Hai Ships Equipment Co Ltd. and TTS Bohai Machinery Co Ltd. in China.
- Healthy operations and an even order intake in China are reflected in the level of activity in the division, at the same time we would like to have seen a higher level of activity in other markets. Overall, we believe the shipbuilding market will continue on a positive trend with plenty of opportunity for the sale of our products and services, says Neteland.
Weaker results for the Port and Logistics division
The Port and Logistics division supplies production lines and systems for material handling in shipyards and other industries, and loading and handling systems for ports.
Turnover in the first half of 2011 was NOK 89 million, a 44 percent decrease compared to the same period last year. The division’s operating profit before depreciation was NOK 2.9 million, compared to NOK 11.7 million in the previous year. This negative trend is the result of weakened markets for transport cassettes, heavy load equipment and panel lines.
At the end of the first half of 2011, the Port and Logistics division’s order backlog was NOK 123 million, compared to NOK 158 million at the same time in 2010 and NOK 94 million at the end of the first quarter this year.
The market for automated container ports has shown a positive trend, with several projects in the pipeline during the autumn. This may be an exciting opportunity for TTS, maintains Neteland.
Energy division recovered
The Energy division supplies drilling equipment for offshore rigs, handling equipment for offshore vessels, as well as complete land rigs. Turnover in the first six months of 2011 was NOK 529 million, a 96 percent increase compared to the first half of 2010.
In the second quarter of 2011, the division noted an operating profit before depreciation of NOK 3 million, compared to a loss of NOK 16.8 million in the second quarter of 2010. For the first six months of 2011, the division further reported an operating loss before depreciation of NOK 6.7 million, compared to a loss of NOK 55.4 million in the first half of 2010.
The order backlog of the Energy division after the first six months of 2011 was NOK 1 290 million , compared to NOK 467 million at the same time in 2010, and NOK 507 million at the end of the first quarter this year.
- For the Energy division the second quarter became a turning point, with results out of the red for the first time since the economic crisis. We have had a healthy order intake for both drilling equipment and offshore cranes, and for this reason we have had to increase our engineering capacity in both Kristiansand and Bergen, where we presently total 340 employees, contracted as well as permanent employees, says Johannes D: Neteland.
About TTS Group ASA
TTS Group ASA is an international group that develops and supplies handling equipment for ships, ports and offshore oil and gas installations. Operations are organised into the business areas Marine, Energy and Port and Logistics. TTS is among the world’s leading suppliers within its market segments.
At the start of 2011, the TTS Group had 1 100 permanent employees (not including associated companies), with a primary emphasis on engineering skills. The group has operative units in 14 countries: Norway, Sweden, Finland, Germany, the Czech Republic, Italy, Greece, China, USA, Canada, Brazil, South Korea, Vietnam and Singapore.
TTS Group ASA’s head office is located in Bergen, Norway, and the company is listed on the Oslo Stock Exchange. Johannes D. Neteland (53) has been President and CEO of TTS since 1998.
Contact:
Johannes D. Neteland,
President & CEO
Tel.: +47 918 46 906
Arild Apelthun,
CFO
Tel.: +47 918 19 265