CHALLENGING QUARTER FOR SIMTRONICS

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Simtronics ASA, the Norwegian fire and gas safety company, today posted its second quarter 2010 results. The Company faced a difficult financial situation in the quarter, while the order flow continued to develop positively.

“This has been a quarter of challenges and of paradox. While Simtronics’ financial situation became worse, the order intake the last few months has been the best since early 2009. Delays in a large Middle East customer projects have caused our current situation, while the strong order flow suggests a positive development going forward,” said Simtronics CEO Rune Martini.

Simtronics posted sales of NOK 63.6 million in the second quarter. EBITDA for the second quarter came in at NOK -2.2 million, compared to NOK -0.9 million in last year’s second quarter. Simtronics posted earnings before taxes of NOK -10.0 million in the second quarter (2009: NOK -5.9 million) and a net loss of NOK 5.8 million (2009: NOK -5.1 million).

For the first half of 2010 Simtronics’ sales were NOK133.9, down from NOK 147.2 million in the first half of 2009. EBITDA for the first half was NOK -6.2 million, compared to last year’s NOK -7.7 million. Earnings before taxes were NOK -22.8 million in the first half, against NOK -19.0 million last year. The Group’s net profit for the first six months of 2010 was NOK -15.6 million, compared to NOK -14.0 million in 2009.

The Detection business area and the Fire Eater extinguishing business delivered according to expectations also in the second quarter, with satisfactory sales, profitability and order flow.

The order flow has improved significantly over the last few months, suggesting that several of Simtronics’ key markets are starting to recover. The order intake in the second quarter was NOK 94 million, well above sales in the quarter. The order intake was 25 per cent higher than the previous quarter and more than 46 per cent higher than fourth quarter 2009 levels.

“We expect that improved demand in combination with a number of internal initiatives will enable us to operate with a profit for the remaining months of 2010,” CEO Rune Martini said.

Based on the Company’s financial difficulties, Simtronics earlier this summer initiated discussions with its bank and main shareholder, Autronica. Following these discussions, Autronica announced an intention to make an offer for all outstanding shares in Simtronics at a price of NOK 2.05 per share. The parties are currently engaged in a due diligence process expected to be completed within a few weeks.

For further information, please contact Mr Rune Martini, CEO of Simtronics ASA, telephone +47 4807 8080

Simtronics ASA (Oslo Stock Exchange: SIMTRO) works to prevent disasters from happening. The company is an international supplier of fire and gas safety systems, active fire fighting solutions and fire prevention systems. Simtronics' flame and gas detectors represent the most accurate, reliable and robust safety technology available. The Company's products, solutions and systems are used by the oil and gas industry as well as in shipping, petrochemical and other process industries and in mining. Simtronics has a well established market base in Europe with Norway, France, UK and Germany as the single most important markets. Simtronics' heritage goes back to 1948.