Muehlhan AG ends first half of 2012 balanced, despite continuous difficult markets

PRESS RELEASE

Muehlhan ends first half of 2012 balanced, despite continuous difficult markets

- Sales at EUR 89.9 million, 11 % increase to previous half-year

- Half-year results after good second quarter (almost EUR 1.0 million) at EUR 0.1 million

Hamburg, 30 July 2012 -The Muehlhan Group (Entry Standard; ISIN DE000A0KD0F7) ended the first half of the year with total net income attributable to the equity holders of EUR 0.1 million (Previous half-year period: EUR 0.5 million). After a difficult first three months there was a significant upward trend in the second quarter. During the first three months of the fiscal year, the Group had reported a loss of approximately EUR - 0.8 million. Overall, the company generated sales revenues of EUR 89.9 million during the period from January to the end of June 2012, up 11% from EUR 80.8 million during the prior-year period.

The European businesses were responsible for most of the Group's total sales revenues. European sales rose almost 14% from EUR 64.6 million in the first half of 2011 to EUR 73.4 million in the first half of 2012, continuing the trend, evident since last year.
The North American activities of the Muehlhan Group achieved revenues of EUR 8.6 million, and missed previous year's figure of EUR 9.6 million. This was due to further declines in the U.S. newbuilding business and the start-up problems of the wind energy business in Canada, which Muehlhan already reported in the first quarter.
The negative trend visible last year in the Asian region, including the Middle East, has reversed: Muehlhan posted a EUR 2.0 million increase in sales from EUR 6.4 million in the first half of 2011.

Following its previous trend, the Ship Newbuilding business once again shrank by one-third, reporting sales of only EUR 14.7 million (First half of 2011: EUR 21.9 million). The situation is different in the Ship Repair sector: Although continuously low freight rates meant that the entire industry was suffering from strained liquidity, some major projects resulted in an above-average increase in repair work. Muehlhan reported sales of EUR 20.6 million in this segment, around one-third higher than the previous year (2011: EUR 14.0 million). In the Energy sector, Muehlhan's activities for customers from wind energy, oil and gas offshore and petrochemicals generated sales revenue of EUR 21.6 million (2011: EUR 16.7 million). Overall, the bulk of the Muehlhan Group's sales revenues were generated by the Energy business.
The Industry activities encompass bridge-coating, passive fire-proofing and other surface-protection services. From January to the end of June, revenues totaled EUR 15.1 million, compared to EUR 12.9 in the first half of 2011. The business division Other Services, primarily consisting of steel construction work for marine and industrial customers, and scaffolding and access services, exceeded the expectations significantly for the second time in a row. Overall, the Other Services segment posted a 20% increase in sales, from EUR 14.9 million in the first half of 2011 to EUR 17.8 in the first half of 2012.

Outlook
The first quarter of 2012 was weighed down significantly by the subdued start to the year. Nevertheless, publishing the half-year report, Muehlhan confirms its original forecast. With total sales revenues of between EUR 165 million and 175 million, earnings before interest and taxes (EBIT) are expected to range between EUR 3.0 and 5.0 million. Consolidated profit should be between EUR 0.5 and 2.0 million.

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