All indicators shows an upward trend for TTS Marine ASA.In the first quarter of 2006, the company achieved a record high turnover and profit, and record sales resulted in an increase in the order backlog for an eight quarter in succession.
- Everything indicates that this progress will continue. Activity in the international ship building market is still increasing in 2006, and will in all likelihood remain at a high level over the next few years, says Johannes D. Neteland, president and CEO.
After the first three months of 2006, TTS’ operating profit before depreciation totalled NOK 24.2 million, as compared to NOK 19.4 million for the same period last year. Compared to the first quarter of 2005, turnover increased by 43 %, to NOK 387 million. As per 31 March 2006, the order backlog was NOK 1 734 million, which is NOK 669 million more than twelve months ago and NOK 81 million more than at the turn of the year. Counting TTS’ share of the order backlog in the two joint venture companies in China, TTS totals an order backlog of close to NOK 2 billion.
Pre-tax profit as per 31 March 2006 was NOK 18.8 million (NOK 17.7 million) and net profit was NOK 13.7 million (NOK 12.6 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 182 million in the first quarter of 2006, an increase of 7 percent compared to the same period in 2005. Operating profit before depreciation was NOK 18.2 million, as compared to NOK 20.3 million in the first quarter of 2005.
At the end of the first quarter, the order backlog of the Dry Cargo Handling division was NOK 829 million, as compared to NOK 754 million twelve months ago.
The division consists of four 100 % owned companies in Sweden, Germany, Norway and the USA. To strengthen TTS’ targeting in Southern Europe, TTS has established a company in Italy, with offices in Genoa.
Through its joint venture company, TTS Hua Hai Ships Equipment Co Ltd., TTS also supplies hatch covers and RoRo equipment to shipyards in China. At the end of the first quarter of 2006, the order backlog of the division totalled NOK 489 million. This order volume (50%) comes in addition to TTS Marine ASA’s order backlog.
Stellan Bernsro (45) has been appointed head of the Dry Cargo Handling division. He remains managing director of TTS Ships Equipment in Gothenburg, which he has headed since 1 September 2005. Bernsro trained as a naval officer and holds a degree in civil engineering, and he has worked for the company since 1996.
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; delivering to the offshore market as well.
The Marine Cranes division had a turnover of NOK 118 million in the first quarter of 2006, an increase of 75 % compared to the same period last year. Operating profit before depreciation was NOK 2.0 million, as compared to a deficit of NOK 0.8 million in the first quarter of 2005.
At the end of the first quarter, the order backlog of the Marine Cranes division was NOK 378 million, as compared to NOK 212 million at the same time in 2005.
As per 31 March this year, the order backlog of the joint venture company TTS Bohai Machinery Co Ltd in Dalian in China amounted to NOK 25 million. This order volume (50 %) comes in addition to the TTS’ order backlog.
Over the past two years, the division has undergone an extensive restructuring that is now paying off. Operation of the 100 % owned subsidiary company in Shanghai is yielding a profit, and results in the joint venture company in Dalian are also better than anticipated. As a result of the positive market development, the divisions in Bergen and Kristiansand have increased their staff by 7 persons so far this year. Plans are made for a further increase of 10-12 persons in the course of the year.
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 39 million in the first quarter in 2006, a 21 % increase as compared to the same period last year. Operating profit before depreciation was NOK 4.2 million, as compared to NOK 1.9 million for the first quarter of 2005.
At the end of the first quarter, the order backlog of the Port and Material Handling division was NOK 116 million, as compared to NOK 99 million at the same time in 2005.
During the first quarter, the division was awarded a contract for the delivery of a heavy lift handling system which will be employed in the transport of large concrete structures to prevent damage caused by tidal flooding in Venice.
Deck Machinery division
TTS acquired Kocks GmbH in October of 2005 and established the Deck Machinery division, which delivers deck machinery.
The Deck Machinery division had a turnover of NOK 49 million in the first quarter of 2006. Operating profit before depreciation was NOK 0.3 million.
At the end of the first quarter, the order backlog in the Deck Machinery division was NOK 411 million. Upon takeover of Kocks GmbH, the order backlog was NOK 329 million.
Manning up
- The operation of the TTS group is developing well with regard to both turnover and results. All four divisions delivered positive results for the first quarter of 2006, and it is a pleasure to note that we have managed to turn around the negative trend in the crane division, says Johannes D. Neteland, president and CEO. He points out that the transfer of business activities from Europe to China has led to increased economic activities in the group, and as such necessitated more engineers for the companies in Europe, in particular Norway and Germany.
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, Port and Material Handling and Deck Machinery. The TTS Group is the world’s second largest supplier within its market segments.
TTS has around 600 employees, with a primary emphasis on engineering skills. The group has 17 companies in 9 countries (Norway, Sweden, Finland, Germany, the Czech Republic, Italy, China, USA and South Korea).
TTS Marine ASA’s head office is located in Bergen, Norway, and the company is listed on the Oslo Stock Exchange.