CHG-MERIDIAN AG
CHG-MERIDIAN AG: Third quarter of 2012 /CHG-MERIDIAN dampens expectations of another record year
CHG-MERIDIAN AG / Key word(s): Quarter Results/Forecast – Slowdown in capital expenditure in Germany tempered by further growth in southern and eastern Europe – New client business has a positive impact on the quarterly results – Modest rise expected in the company's gross profit for 2012
Weingarten, November 7th, 2012 Despite the record results achieved in 2011 and despite the generally restrained spending on capital equipment in the technology sector, CHG-MERIDIAN AG, one of Europe's leading non-captive equipment leasing companies, is predicting modest growth for 2012. It remains cautious, however, as to whether its targets for the year will be reached. CHG-MERIDIAN – headquartered in Weingarten, south-west Germany, and represented in 19 countries worldwide – is still falling slightly short of its own projections. As the company's latest quarterly figures show, positive growth in southern and eastern Europe as well as new client business are balancing out the current downturn in lease originations in Germany. The volume of new lease originations in Germany fell by 9.5 percent to EUR298 million (2011: EUR330 million) between January and September 2012. This downward trend is also making its presence felt in the company's leasing of high-value capital assets such as production equipment. To counter this, CHG-MERIDIAN founded a subsidiary at the beginning of the year to open up new market segments. In light of the modest fall in spending on capital equipment in Germany, however, the company is cautious as to whether its ambitious targets for 2012 in this business area will be reached by the end of the year. 'The new approaches which we are presenting to our customers require explanation and more time to implement. The feedback that we have received, however, has been consistently positive, giving us cause for optimism,' says Jürgen Mossakowski, Chief Executive Officer (CEO) of CHG-MERIDIAN. Further growth in southern and eastern Europe Overall, with lease originations amounting to EUR581 million in nine months, the Group has almost reached the level of the previous year (2011: EUR600 million), in which it achieved record results. The success in southern and eastern Europe in particular, with growth of 38.0 percent and 26.6 percent respectively, validates CHG-MERIDIAN's strategy of increasing its focus on customized business concepts in the technology and financing sector and thereby broadening its position on the market. Overall, international business now accounts for almost half the Group's volume of lease originations. New client business having a positive impact The appeal of CHG-MERIDIAN for new clients is having a positive impact on the company's lease originations, which increased in volume by 18.2 percent to EUR160 million (2011: EUR136 million) in the third quarter of 2012. 'We see this as a clear indicator that our innovative ideas and expertise in technology management are proving highly persuasive and enabling us to open up new customer segments,' says Mossakowski. 'Going against the prevailing trend, we have been able to expand our volume in this area and increase our market share, giving us cause for optimism.' In spite of the dampened expectations in the third quarter of 2012, a positive picture for 2012 is emerging from the latest earnings figures. In terms of gross profit – i.e. the present value of all leases originated and assets remarketed minus direct acquisition and funding costs – CHG-MERIDIAN anticipates a moderate increase on 2011 for the year as a whole. This will also apply should there be no significant increase in lease originations on the previous year. The gross margin within the Group also climbed in the third quarter, up by 5.7 percent from EUR83.7 million to EUR88.5 million.
About CHG-MERIDIAN
More information and press pictures can be found at
Contact:
End of financial news The picture belonging to this press release can be found here: http://newsfeed2.equitystory.com/meridian/191787.html Caption: Jürgen Mossakowski, CEO CHG-MERIDIAN AG 07.11.2012 Dissemination of a Corporate News, transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. DGAP’s Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de |
191787 07.11.2012 |