In the first six months ot the year, TTS’ operating profit before depreciation totalled NOK 48.3 million, as compared to NOK 38.7 million in the same period last year.
We are on track in all business areas, and are particularly pleased to note that the crane division is showing improved results. The agreement regarding takeover of Umoe Schat-Harding entails that TTS will become a one-stop supplier of decks equipment. This will contribute to a further increase in profitability, says Johannes D. Neteland, President and CEO.
The TTS Group achieved a turnover in the first half of 2006 of NOK 772 million, an increase of 46 percent compared to the same period last year. The order backlog as per 30 June 2006 was NOK 1 789 million; the highest ever in the history of the company. As per 30 June 2005, the order backlog was NOK 1 152 million. Including the order backlog of the two joint venture companies in China, TTS has orders for over NOK 2 billion.
Pre-tax profit as per 30 June 2006 was NOK 42.2 million (NOK 35.0 million) and earnings before depreciation were NOK 31.7 million (NOK 25.0 million).
Dry Cargo Handling division
Through its activities in the Dry Cargo Handling division, TTS is the world’s second largest supplier of cargo handling systems for ships; side loading systems, Ro-Ro equipment, hatch covers and special equipment for yachts and cruise ships.
The Dry Cargo Handling division had a turnover of NOK 352 million in the first six months of 2006, an increase of 18 percent compared to the same period in 2005. Operating profit before depreciation was NOK 37.0 million, compared to NOK 31.9 million in the first six months of 2005.
As per 30 June 2006, the order backlog of the Dry Cargo Handling division was NOK 877 million, compared to NOK 781 million twelve months ago. In the third quarter of 2006, the division’s Swedish company has signed contracts worth approx. NOK 100 million for delivery of equipment for 8 car carriers to be built in Polen.
Through its joint venture company, TTS Hua Hai Ships Equipment Co Ltd., TTS also supplies hatch covers and RoRo equipment to shipyards in China. As per 30 June 2006, the order backlog of the division totalled NOK 527 million. This order volume comes in addition to TTS Marine ASA’s order backlog.
Marine Cranes division
Through the Marine Cranes division, TTS develops and delivers marine cranes, and is the world’s leading supplier of hose handling cranes. TTS is moreover a major supplier of provisions cranes and cargo cranes.
The Marine Cranes division had a turnover of NOK 225 million in the first six months of 2006, an increase of 44 percent compared to the same period last year. Operating profit before depreciation was NOK 8.0 million, compared to NOK 0.1 million as per 30 June 2005. The division has undergone an extensive restructuring which is now yielding results.
As per 30 June 2006, the order backlog of the Marine Cranes division was NOK 390 million, compared to NOK 305 million at the same time in 2005.
In the third quarter, the division’s German company has signed contracts worth approx. 56 million for the delivery of cranes for ships to be built in Portugal.
Port and Material Handling division
The Port and Material Handling division delivers shipyard production systems and systems for onshore handling of RoRo equipment and containers.
The Port and Material Handling division had a turnover of NOK 81 million in the first six months of 2006, an 11 percent increase compared to the same period last year. Operating profit before depreciation was NOK 7.1 million, compared to NOK 8.6 million as per 30 June 2005.
As per 30 June 2006, the order backlog of the Port and Material Handling division was NOK 138 million, compared to NOK 66 million at the same time in 2005. In the second quarter, the division’s Norwegian company entered into a contract worth 57 million for delivery of a large panel production line to a shipyard in China. In the third quarter, the division’s Finnish company has signed contracts worth approx. 23 million for the delivery of cassettes for onshore cargo handling.
Deck Machinery division
TTS acquired Kocks GmbH in October of 2005 and established the Deck Machinery division. The division delivers anchor handling and mooring winches for ships.
The Deck Machinery division had a turnover of NOK 114 million in the first six months of 2006. Operating profit before depreciation was a deficit of NOK 3.1 million. The deficit is a result of costs incurred in connection with the restructuring of operations.
As per 30 June 2006, the order backlog in the Deck Machinery division was NOK 384 million. Upon takeover of Kocks GmbH, the order backlog was NOK 329 million.
Acquisition of Umoe Schat-Harding has synergistic effects
On 16 August 2006, TTS announced a Heads of Agreement with Umoe Industri AS regarding takeover of the subsidiary company Umoe Schat-Harding AS; a company that supplies lifeboats and other evacuation equipment. The company will form a new division of TTS. Managing Director Ove Røsseland becomes part of the group management.
- This implies that the potential for increasing the volume of business in the entire Group, both with respect to new sales and in particular after sales activities and service activities are considerable, emphasises Johannes D. Neteland, president and CEO.
He points out that everything indicates that TTS’ success will continue. – Activity in the international ship building industry will in all probability remain at a very high level for several years. We are positioned to obtain our share of this increase in the market, says the president and CEO of TTS.
About TTS Marine ASA
TTS Marine ASA is an international group that develops and delivers marine equipment. Operations are organised into the following four divisions: Dry Cargo Handling, Marine Cranes, Ports and Material Handling and Deck Machinery. The TTS Group is the world’s second largest supplier within its market segments.
TTS has around 580 employees, with a primary emphasis on engineering skills. The group has 17 companies in Norway, Sweden, Finland, Germany, the Czech Republic, Italy, China, USA and South Korea, including two joint venture companies in China and one in Korea.
Upon takeover of Umoe Schat-Harding, the number of employees in the Group will be 1 115, and turnover will reach more than NOK 2 billion. TTS becomes a group consisting of 25 operating units in 12 countries. Additionally, a global network of sales and service representatives will be included into the TTS Group
TTS Marine ASA’s head office is located in Bergen, Norway, and the company is listed on the Oslo Stock Exchange.
Contact persons:
President & CEO Johannes D. Neteland
Phone: +47 55 94 74 02 Mobile: +47 918 46 906
Email: johannes.neteland@tts-marine.no
Director Olav Bruåsdal
Phone: +47 55 94 74 25 Mobile: +47 915 61 152
Email: olav.bruasdal@tts-marine.no