MODEST GROWTH IN A CHALLENGING ENVIRONMENT
- Revenue growth from continuing operations of 5%
- Order book increases to €1,434 million from €1,407 million
- Gross margins stable, but higher cost associated with investments in geographical expansion and future organisation
- Operational EBITDA €66 million (2010: €71 million)
CEO Sjoerd Vollebregt: “Stork Technical Services (STS) showed a modest revenue growth in a market that is characterised with cautious customer demand. Fokker Technologies (Fokker) operates in a market with good demand from the aircraft oem’s [Original Equipment Manufacturers] while the Fokker Services unit experienced sluggish demand and unsatisfactory margins.
All in all we managed to grow revenues by 5% and sustain gross margins for the group. Operational EBITDA decreased with Eur 5 million. This is for a substantial part the consequence of accelerated investments to enhance the commercial and operational efficiency of both the STS and Fokker organizations. Whilst these programs put pressure on short term profitability they are an inevitable ingredient of our long term strategy and will result in sustainable future growth in both revenues and profitability. We are seeing the first benefits of these programs coming in, specifically on the marketing and sales side.
Cooperation with RBG, the acquisition in the Oil and Gas sector announced in May, is developing according to plan. This provides a platform for accelerated international growth of STS’s core businesses specifically in the North Sea, Caspian and Middle Eastern regions.
Our order book and financial position remain strong and provide a solid basis for the short to midterm future of our respective businesses.”