Brussels, 23 January 2004
Cegelec, the international group providing technological services to companies and local authorities, has closed its consolidated accounts for the financial period ending on 30 September 2003. The year 2002/2003 was marked by sizeable contracts, an active external growth and an accelerated debt reduction.
Orders: EUR 2.75 billion
Turnover: EUR 2.67 billion
The low level of investment of companies in general, the curb on public expenditure linked mainly to compliance with the European Stability Pact, and the limited economic growth in the Europe zone (+ 0.5%) created a context that was none too favourable for Cegelec. However, despite this economic climate, the group has managed to maintain its level of business. Orders placed amounted to EUR 2.75 billion (down 1.6%), and sales totalled EUR 2.67 billion, a decrease of 5.9% compared to 2002 (5.6% based on constant exchange rates and structure).
During the course of the financial period, there were some sharp contrasts in the economic context characterising the various branches of industry. An appreciable fall in business was recorded in the manufacturing industries, chemicals and shipbuilding. On the other hand, those sectors corresponding to the group’s strategic orientations performed exceptionally well: particularly illustrative of this are the car industry and the pharmaceutical sector, which registered an increase in sales of +36% and +100%, respectively.
Major references that have chosen the Cegelec group on account of its technological expertise
Several significant contracts were signed during the financial period. By way of examples, the Cegelec group was selected by the Atomic Energy Commission “CEA” for the MegaJoule Laser project, by the Ministry of Transport of Singapore for the extension of one of the lines on the island’s underground system (ventilation, monitoring of a tunnel and electrical services); by the Railway Network of France for railway line electrification; by the DCN (Direction de constructions navales) for the maintenance of the nuclear submarine Le Triomphant; for the construction and project management of the largest wind farm in France; for participation in the building of the new BMW plant at Leipzig (Germany); and for the supply of control and telecommunications systems for a major gas field in Russia.
Operating margin remains at very good level
The operating result amounts to EUR 106.5 million, as compared to EUR 113.4 million in 2001/2002. It was possible to stabilise the operating margin (EBIT) at 4% of the turnover, thanks to the cost reduction and risk control programmes.
Continued debt reduction: a EUR 238 million reduction in net debt over two years
After financing the acquisitions, the group reduced its debt level by EUR 107 million over the financial period. At the end of September 2003, the net indebtedness stands at EUR 206 million, i.e. a ratio of net indebtedness to equity capital of 73%.
Resumption of external growth: five acquisitions
Put on-hold in 2002 in order to give priority to the group’s debt reduction process, the acquisitions of five new entities were completed during the course of 2002/2003. Among the most significant: the takeover of Siemens’ Installation activities in Holland and the purchase of ABB Building Systems in Belgium and the Netherlands. Since ABB’s consolidation was officially recorded on 30 September 2003, its contribution to Cegelec’s consolidated results is zero for the financial period under review.
Confidence in the prospects for 2004
Bearing in mind the prospects for economic recovery, the impact over a full year of the acquisitions that have been made, and the expected result of the commercial development policy, the Cegelec group is approaching the 2003/2004 financial year with great confidence.
About Cegelec
Cegelec is an integrated global group providing technological services to companies and local authorities. Its 26,000 employees are spread over 1,200 establishments in 30 countries. Cegelec offers efficient technological solutions in the following fields: Energy, Electricity; Automation, Instrumentation and Control; Information and Communication Technologies; Climatic Engineering, Mechanics, Mecatronics; Long-term service agreement.
Contact :
Jean-Louis Erneux
Cegelec Communications Department
Tel. +32 2642 30 70
jean-louis.erneux@cegelec.com
www.cegelec.com
