TTS Marine ASA beat all previous records in 2005. Turnover increased 46 per cent to NOK 1,150 million and earnings before depreciation increased 60 per cent to NOK 67.2 million.
The order backlog increased 79 per cent throughout the year and was NOK 1,653 million at year-end. – 2005 was a very good year and the market outlook is positive for many years to come, says President and CEO Johannes D. Neteland.
TTS achieved earnings before depreciation of NOK 67.2 million, compared with NOK 42.1 million in 2004. Pre-tax profit was NOK 56.3 million (NOK 31.3 million), and the net profit was NOK 40.2 million (NOK 21.6 million).
TTS Marine reported new contracts with a total value of NOK 243 after the end of the year. – We have orders and a capacity now that should enable us to increase our total turnover by around 40 per cent in 2006, in addition to filling our order books for 2007 and 2008. It also looks like the level of activity in the international shipbuilding market will remain high for more years than previously assumed, Neteland points out.
Turnover in the group in the fourth quarter of 2005 was NOK 347 million, and earnings before depreciation were NOK 11.1 million. These results include losses on a project in the Port and Material Handling division and the start-up and development costs associated with a newly established company in this division totalling NOK 10 million.
As of the fourth quarter of 2005 TTS Marine ASA is reporting from the following divisions: Dry Cargo Handling, Marine Cranes, Port and Material Handling and Deck Machinery.
Dry Cargo Handling division
TTS is the world's second largest supplier of cargo handling systems for ships, which include side door systems, RoRo equipment, hatch covers and special equipment for yachts and cruise ships, through the operations of the Dry Cargo Handling division. This division, which is managed from Sweden, is TTS’s largest division, with four wholly owned companies in Sweden, Germany, Norway and the US. TTS is also participating in a joint venture in China with a 50 per cent interest.
The Dry Cargo Handling division reported a turnover of NOK 650 million in 2005, an increase of 34 per cent in relation to the previous year. Earnings before depreciation (EBITDA) were NOK 61.3 million, an increase of 27 per cent.
At year-end the order backlog in the Dry Cargo Handling division was NOK 825 million. TTS is also a supplier of hatch decks and RoRo equipment to shipyards in China through the joint venture company TTS Hua Hai Ships Equipment Co Ltd. The order backlog was approximately NOK 400 million at the end of 2006. These orders are in addition to the TTS order backlog.
Marine Cranes division
TTS develops and delivers cranes for ships, and it is the world's largest supplier of hose handling cranes through the Marine Cranes division. TTS is also a significant supplier of provision cranes, as well as loading and unloading cranes, and it focuses moreover on the offshore market. This division is managed from Bergen in Norway and consists of four wholly owned companies, with operations in Norway (Bergen and Kristiansand), Germany, Korea and China. TTS is also participating in a joint venture in China with a 50 per cent interest.
The Marine Cranes division reported a turnover of NOK 309 million in 2005, an increase of 31 per cent in relation to the previous year. Earnings before depreciation (EBITDA) were NOK 0.2 million, compared with minus NOK 11.2 million in the previous year. The operations showed a positive development throughout the year, and this is expected to continue in 2006.
At year-end the order backlog in the Marine Cranes division was NOK 390 million. TTS established the joint venture company TTS Bo Hai Machinery Co Ltd in Dalian, China together with the state-owned Chinese company CSIC in 2005. At the start of 2006 the company had an order backlog of NOK 20 million. These orders are in addition to the TTS order backlog.
Port and Material Handling division
In 2005 TTS consolidated all its operations related to shipyard systems and systems for handling containers on land in the Port and Material Handling division. This division is managed from Gothenburg, Sweden, and it consists of three wholly owned companies in Norway, Finland and Sweden.
The market for the division’s products showed a positive development. The Port and Material Handling division reported a turnover of NOK 141 million in 2005. Earnings before depreciation (EBITDA) were NOK 7.0 million. The results include the recognition of losses of NOK 7.0 million in the fourth quarter due to a delivery delay to a shipyard in India, in addition to start-up and development costs of NOK 3 million for the new company in Sweden.
At year-end the order backlog in the Port and Material Handling division was NOK 72 million.
Deck Machinery division
TTS acquired Kocks GmbH in October 2005 and established the Deck Machinery division. This division is managed from Bremen, Germany, and it has wholly owned subsidiaries in Germany and the Czech Republic, in addition to a joint venture company in Korea. TTS will increase its focus on the delivery of deck machinery internationally based on the competence of TTS Kocks.
Turnover in the Deck Machinery division in the fourth quarter of 2005 was NOK 50 million. Earnings before depreciation (EBITDA) were NOK 2.5 million. This result includes the sale of assets totalling NOK 1.3 million.
At year-end the order backlog in the Deck Machinery division was NOK 366 million. The profit margins in the deck machinery market are relatively low, but a positive earnings development is expected nevertheless in 2006.
Good outlook
– The operations of the TTS Group show a positive development with respect to both turnover and earnings. In 2005 we integrated new businesses into the group and completed the acquisition of Kocks. TTS has been strengthened as a brand. The markets for our products and deliveries are very good in general, and we believe that the growth and positive earnings development will continue for at least a couple of more years, says President and CEO Johannes D. Neteland.
About TTS Marine ASA
TTS Marine ASA is an international group that develops and delivers marine equipment. The operations are organized into the following divisions: Dry Cargo Handling, Marine Cranes, Port and Material Handling and Deck Machinery. The TTS Group is the world’s second largest supplier in its market segments.
TTS has around 500 employees with a primary emphasis on engineering skills. The group consists of a total of 17 companies in Norway, Sweden, Finland, Germany, Poland, Czech Republic, China, US and South Korea. TTS also participates in two joint venture companies in China.
TTS Marine ASA's head office is located in Bergen, Norway, and it is listed on the Oslo Stock Exchange.