Marel Q2 2011 results

• Revenues for Q2 2011 totalled 161.9 mln, an increase of 19% compared to revenues for the same period the year before [Q2 2010: 136.1 mln].
• Normalised EBITDA was 20.9 mln, or 12.9% of revenues [Q2 2010: 21.1 mln normalised].
• Normalised operating profit (EBIT) was 15.0 mln, or 9.2% of revenues [Q2 2010: 15.2 mln normalised].
• One‐off costs related to an agreement on the future arrangements of the Stork Pension Fund, amounting to 11.1 mln, are included in the consolidated income statement for Q2 2011.
• Taking into account the above one-off costs, net result was 0.2 mln for Q2 2011 [Q2 2010: 0.1 mln].
• Cash flow remains healthy and net interest bearing debt is 248.8 mln at the end of Q2 2011 [Q2 2010: 284.1 mln].
• The order book continues to grow as a result of a strong product pipeline and favourable market conditions. The order book stands at 176.3 mln at the end of the quarter [Q2 2010: 125.3 mln].

Q2 2011 was a good quarter for Marel. Revenues totalled 162 mln, an increase of 19% compared to Q2 2010 and 5% compared to the previous quarter. The EBIT margin was 9.2% in Q2 and 10.2% for the first half of the year, which is within the company’s target of 10-12% return on revenues for the year. The outlook for the remainder of the year is positive.

Orders received continue to exceed orders booked off, leading to a continuing increase in the order book, which stood at 176 mln at the end of the quarter, compared to 125 mln at the same time the year before.

Revenues of 315 million in 1H 2011 with EBIT margin of 10.2%

Revenues totalled 315.4 mln for the first half of the year, an increase of 19% compared to revenues for the same period the year before [1H 2010: 264.9 mln from core business].
Normalised operating profit (EBIT) was 32.1 mln for the first half of the year, or 10.2% of revenues [1H 2010: 30.3 mln normalised from core business].
Net result was 9.0 mln for the first half of the year [1H 2010: 5.7 mln consolidated].
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For further information, contact:

Jón Ingi Herbertsson, Investor and Public Relations Manager
tel: (+354) 563-8451

Erik Kaman, CFO,
tel: (+354) 563-8072

Sigsteinn Grétarsson, Managing Director of Marel ehf.,
tel: (+354) 563-8072

Forward-looking statements
Statements in this press release that are not based on historical facts are forward-looking statements. Although such statements are based on management’s current estimates and expectations, forward-looking statements are inherently uncertain. We, therefore, caution the reader that there are a variety of factors that could cause business conditions and results to differ materially from what is contained in our forward-looking statements, and that we do not undertake to update any forward-looking statements. All forward-looking statements are qualified in their entirety by this cautionary statement.