ATB Austria Antriebstechnik AG: Quarterly Result Q1 2013

Vienna (pta034/25.04.2013/17:30 UTC+2) - Slight reduction in sales revenue to TEUR 84,241
- New orders healthy and increased by 1.5%
- Proportion of material costs improved by 2.6 percentage points
- Equity ratio stable at 33.3%
- Massive capital expenditure boost of 74.4%

Vienna, 25 April 2013. In a persistently difficult market environment, ATB Austria Antriebstechnik AG, domiciled in Vienna and listed on the Vienna Stock Exchange, managed to minimise the reduction in sales revenue compared to the first quarter of 2012. With an improved product portfolio and an optimised distribution structure, it was nonetheless possible to achieve a satisfactory result. In the first quarter of 2013, the Group once again had to operate in a weak economic environment. Particularly in Europe, which is still the ATB Group's most important market, business continues to be characterised by the uncertainty of market participants and the associated caution when making capital investments. Projects were deferred or certain parts of planned projects were stopped. The stagnation of the market also led to a further increase in competition.

Sales revenue and profit
In spite of the on-going difficulties in the economy, the ATB Group was able to generate sales revenue of TEUR 84,241 (Q1 2012: TEUR 91,206) in the first three months of the current reporting period. Apart from the reluctance of many customers to make capital investments, the 7.6% decline can be attributed to two main factors in particular: On the one hand, the economic environment for home and garden applications was extremely difficult, which led to marked reductions in sales revenue for industrial motors. On the other hand, the sharp fall in demand for coal had a direct effect on investment activities in the mining segment. This led to a decline in the results for the project motor business, a large part of which is based at ATB Morley. Sales revenue in the first quarter of 2012 was exceptionally high as a result of the mining boom which led to full order books at ATB Morley at the end of 2011 and the beginning of 2012. Due to the subsequent mining slowdown, ATB Morley was unable to maintain the large volume of orders. In this context, the sales revenue generated in reporting period Q1 2013 still represents a good result. Against the background of reduced sales revenue, personnel costs which have remained roughly the same and other operating expenses, EBIT for the ATB Group declined in the first three months to TEUR 4,497, after TEUR 6,802 in the first quarter of 2012. EBT declined in the first quarter of 2013 to TEUR 3,028, after TEUR 4,107 in the prior-year comparative period. At the same time, the result for the period reduced by 15.9% to TEUR 2,609 (Q1 2012: TEUR 3,102). Moreover, the ATB Group was able to markedly improve the relative proportion of material costs, reducing it from 49.7% in the first quarter of 2012 to 47.1% in the reporting period. This performance was also attributable to purchasing synergies and optimised use of material costs, as well as to a change in the product portfolio.

New orders and order backlog
In a generally cautious market environment, new orders improved slightly compared to the first quarter of the previous year by 1.5% to TEUR 90,606 (Q1 2012: TEUR 89,245). At the 31 March 2013 reporting date, the order backlog at TEUR 120,213 was 7.2% below the 2012 amount (TEUR 129,499). Reasons for this performance include the improvement in the delivery times of many plants and the reduction in peak order periods from previous years. As a result, ATB Group continues to have a satisfactory workload which guarantees good production planning for subsequent quarters.

Net assets and financial position
Total assets of TEUR 294,112 at the 31 March 2013 reporting date were TEUR 5,232 higher than the comparative amount at the end of the previous year (31 December 2012: TEUR 288,880). The equity ratio therefore remained stable at 33.3% (31 December 2012: 33.7%).

Capital expenditure
In the first quarter of 2013, the ATB Group continued with its investment activities, which had gathered pace significantly in 2012, in order to safeguard and further improve the Group's positive performance over the long term. Compared to the prior-year reporting period, capital expenditure therefore once again increased significantly in the 2013 reporting period. Above all, it related to acquisitions to increase site competitiveness, especially to optimise production structures and processes, and to improve cost structures. Capital expenditure in the period from January to March 2013 totalled TEUR 3,895 and was thus 74.4% above the prior-year comparative (Q1 2012: TEUR 2,233). The amount invested therefore equated to 4.6% of sales revenue.

Employees
At the 31 March 2013 reporting date, the ATB Group had 3,516 employees. The reduction of 1.6% is above all attributable to adjustments to and increases in productivity at the individual sites in the fourth Quarter of 2012.

Outlook for 2013
Both the European economy and the global economy continue to be in a difficult position, perpetually influenced by the latest developments in the European debt crisis and political developments in the Middle East. Based on current knowledge, ATB management assumes that the level of new orders in the first quarter can be maintained. Furthermore, management also expects current new orders to have a positive effect on sales revenue for the second quarter. Nevertheless, the risk of negative economic developments remains; the effect of these on the further performance of the Group would not be insignificant.

Based on the first results of the optimisation and development projects that have been started in various business areas of the Group, ATB management is confident that the Group will also be able to make a valuable contribution to the economic recovery in the future. To safeguard future positive performance, ATB Austria Antriebstechnik AG will carry on with the investment activities that commenced in 2012 and continued in the first quarter of 2013. As far as product development is concerned, measures have been initiated for the further development of energy-efficient drives, the conclusion of current certifications for a global market presence and the further optimisation of the product offering.

It is also important for the ATB Group to continue the integration process that has been started and to sensibly exploit synergies both within the Group and with WOLONG. Growth, optimisation, globalisation, synergies and product development will continue to be the ATB Group's key core themes for 2013.

ATB Austria Antriebstechnik AG - selected key figures

in TEUR	01-03/2013	01-03/2012	% Change
Sales revenue	84,241	91,206	-7.6%
EBITDA	6,654	9,162	-27.4%
Operating result (EBIT)	4,497	6,802	-33.9%
EBIT margin	5.3%	7.5%	-28.4%
Earnings before taxes (EBT)	3,028	4,107	-26.2%
Result for the period	2,610	3,102	-15.8%
New orders	90,606	89,245	1.5%
Order backlog (as at 31 March)	120,213	129,499	-7.2%
Capital expenditure	3,895	2,233	74.4%
Employees as at 31 March	3,516	3,573	-1.6%

Vienna, 25 April 2013

Note
This disclosure includes statements about possible future events. These statements have been prepared based on information currently available. They reflect the Managing Board's current assessment of future events and should not be taken as guarantees of future performance; they include risks and uncertainties which are difficult to predict. A wide variety of reasons could cause actual results or circumstances to differ fundamentally from the assumptions made in the statements.

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