The financial results for Q2 2014 were presented at an investor meeting at Marel headquarters Thursday, July 24.
Gardabaer, Iceland, 28-7-2014 — /EuropaWire/ — Revenues for the quarter totaled 169.8 million EUR and declined by 4.8% compared with same quarter in previous year. Orders received amounted to 187.8 million compared with 160.8 million in Q1 2014 and 159.1 million in Q2 2013. This represents a strong order intake in Q2.
Marel’s main markets are showing positive developments. With a focused market approach Marel secured well balanced orders in large systems, standard equipment and spares During Q2, orders were secured from around the world confirming that Marel is strategically and commercially strong with a good portfolio of unique solutions. Net result for Q2 2014 was 0.8 million EUR.
During the meeting Arni Oddur Thordarson, CEO of Marel, highlighted the main results of the quarter:
“We are pleased with milestones reached. Our operational performance improved, order intake is strong and we are moving forward with our refocusing plan. What does refocusing mean? It means simply to shift the focus. We are shifting the focus from pure volume growth to a blended approach of value and volume.
Why are we convinced of that we will improve our profitability and revenue going forward? We took a deep dive on the situation in Marel at the beginning of the year. What are our competitive strengths? Where are the markets heading? What kind of people do we have? Can we meet the future needs of the market? The conclusion is that we have the team and we are commercially strong, however we have not captured fully the synergies behind all the companies that have been merged in recent years. It is obvious that we can simplify our company and lower the fixed cost. We will simplify our manufacturing footprint taking the first steps now. The basic idea is that Marel’s manufacturing footprint will consist of few strategic multi-industry sites that are able to take on fluctuations in under and over utilization and take on growth”.
Erik Kaman, CFO, gave a comprehensive overview of the key financials:
“Business is picking up and results are improving. The highlight of the income statements is that orders received are good and way ahead of comparable quarters. When we compare it with same quarter last year they are up by 18% which is a positive sign for us. You also see also that the gross profit margin is 35.5% an improvement of 2 percentage points since same quarter last year because of better execution of projects and better margin. Adjusted EBIT is a little bit lower than last year but is improving between quarters”.
Marel is the leading global provider of advanced equipment, systems and services to the fish, meat and poultry industries. Our brands – Marel, Stork Poultry Processing and Townsend Further Processing – are among the most respected in the industry. Together, we offer the convenience of a single source to meet our customers’ every need. With offices and subsidiaries in over 30 countries and a global network of more than 100 agents and distributors, we work side-by-side with our customers to extend the boundaries of food processing performance.
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