Revenue of EUR 102.8 million in Q3 2019, down 4% compared with Q3 2018 (EUR 107.1 million)
EBITDA (normalised) decreases by 20% to EUR 10.8 million in Q3 2019 (Q3 2018: EUR 13.5 million), with an EBITDA margin of 10.5%
Net profit (normalised) of EUR 2.6 million in Q3 2019 (Q3 2018: EUR 4.6 million)
China continues to grow with around 30% year-on-year
Strong normalised free cash flow of EUR 7.8 million
Further efficiency improvements with EUR 5.0 million expected annualised savings as from 2020
Kendrion intends to acquire INTORQ GmbH & Co. KG, a global market leader in spring-applied brakes – as announced today in a separate press release
Kendrion to cancel its currently ongoing share buyback programme as per today

Joep van Beurden, Kendrion CEO:
"In Q3 the weak market demand affected our revenue as trade tensions and their broader impact on consumer confidence continued. In Automotive, the market slowdown continues with decreasing vehicle sales across the globe. In the Industrial market, which was resilient in 2018 and the first months of 2019, we now see lower activity levels and destocking.

The revenue decline of 4% in both Automotive and Industrial has put our results under pressure, and we continue to adapt our organisation. We have decreased our staff costs with another 4% compared with the same period last year and have identified further areas for efficiency improvements of EUR 5.0 million on an annualised basis in 2020. Cash flow has been satisfactory at EUR 7.8 million.

Despite the difficult trading environment, we continue to invest in our focus areas of Automotive, industrial brakes and China, as we firmly believe in the longer-term prospects of our business. In Automotive, we added significantly to our project pipeline and we continue to win new projects in both China and Europe. Importantly we won the first commercial contract for our "battery cooling valve and control system", one of our six new "Lighthouse" platforms. China continues to be successful in terms of growth, with around 30% in the third quarter, up from 21% in H1 2019.

And today, we also announce a step change in brakes, with the intended acquisition of INTORQ GmbH & Co. KG, a global market leader in spring-applied brakes. With this acquisition we complement our leading position in permanent magnet brakes allowing us to offer a complete product range to customers in Europe, the U.S., China and India, in applications such as geared and servomotors, elevators, forklift trucks, wind power and robots. We expect the transaction to close in Q1 2020. I refer to our separate announcement issued today for more details.

We are gearing up for a tough Q4, and expect the current difficult trading environment to continue into 2020. As evidenced by the continued investment in our growth areas and the intended acquisition of INTORQ, we strongly believe in the opportunities for both our Automotive and Industrial activities, and reiterate our long-term financial targets."

see & read mkore on
https://www.kendrion.com/attachment/Persbericht-2019-11-05-Q3-2019-results-FINAL.pdf

AND
Kendrion to acquire INTORQ to create a leading industrial brake company
Strengthening position in industrial brakes and expanding footprint in China
Enterprise value of EUR 80 million (on a cash and debt free basis)
Strong strategic fit with significant synergy potential, leading to double digit EPS accretion in first year after acquisition
Share buyback programme cancelled
Kendrion today announced that it has entered into a definitive agreement to acquire INTORQ GmbH & Co. KG. The transaction is valued at an enterprise value of EUR 80 million (on a cash and debt free basis), representing a multiple of 10.4 times FY 2018/19 EBITDA, and 8.0 times FY 2018/19 EBITDA including expected run-rate cost synergies. INTORQ is headquartered in Aerzen (Germany). Closing is subject to customary conditions and is expected to take place in the first quarter of 2020.The acquisition is expected to result in double digit EPS accretion in its first year.

INTORQ manufactures spring-applied brakes and electromagnetic brakes and clutches for electrical drive technologies. INTORQ products are used in a diverse range of applications, including geared and servomotors, electric forklifts, wind power, cranes, hoists, elevators and escalators. INTORQ has production sites in Aerzen (Germany), Shanghai (China), Atlanta (the U.S.) and Pune (India) and produces approximately 1 million brakes and clutches per year. INTORQ has annual revenues of around EUR 57 million and nearly 300 employees.

Joep van Beurden, CEO of Kendrion:
"This transaction substantially strengthens our position in industrial brakes and further expands our footprint in China. The acquisition creates a leading industrial brake company which provides our customers with a broad set of industrial brake technology products, while optimising operational efficiencies. INTORQ has built a high-performance company based on high quality products and a long and successful relationship with their customers. We highly value INTORQ's culture and way of working and we look forward to welcoming the team from INTORQ into our Group."

Dr. Eckard Menzel, Managing Director INTORQ GmbH & Co. KG:
"We are delighted to be teaming up with Kendrion's industrial drives business unit. The combined product range of Kendrion and INTORQ will create a strong product offering to the market of brakes for electrical drives globally. Under the roof of a strong partner the INTORQ offer of leading brakes and clutches to the global market will be much better continued."

tijd 13.58
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