Burckhardt Compression Revised Earnings Guidance for the Year Ending March 31, 2015; Provides Earnings Guidance for the Year Ending March 31, 2016
February 09, 2015
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The decision by the Swiss National Bank will have an impact on Burckhardt Compression's operating results for the fiscal year ending March 31, 2015. The company is now expecting sales for fiscal year 2014 to be about 10% higher. This guidance takes into consideration decreased sales from projects that will still be invoiced in euros and the expected currency translation effects arising from the appreciation of the Swiss franc. Likewise included are the postponements customers requested in the delivery of two larger projects, which pushes the resulting sales from this fiscal year to the next. Operating profit and net income should be around the levels reported for the previous fiscal year. This forecast includes a one-time reduction of approximately CHF 8.0 million in operating profit resulting from the static currency translation of various items on the balance sheet. Measures to reduce the company's vulnerability to exchange-rate fluctuations that had already been initiated before the SNB announcement are producing the intended results. The recent trend in oil prices has a limited impact on Burckhardt Compression's business activities because only a small share of its business is with crude oil producers. It maintains a positive outlook for fiscal year 2015.
At the present time Burckhardt Compression is expecting fiscal year 2015 sales to exceed the amount reported for the previous fiscal year. The operating profit and net income margins will be considerably higher compared to the levels from the fiscal year 2014. The EBIT margin is expected to be near the middle of the long-term target range of 15% to 20%.
Burckhardt Compression Holding AG is a Switzerland-based manufacturer of reciprocating compressors. The Company's product portfolio comprises compressor valves, rings, capital parts, labyrinth piston compressor components, and hyper and secondary compressor components. Its customized compressor systems are used in the upstream and downstream oil and gas, gas transport and storage, refinery, chemical, petrochemical and industrial gas sectors. The Company also provides related services, such as repair and maintenance, installation, condition monitoring and diagnostics, and spare parts. It is present in more than 80 countries and operates production and assembly facilities in Switzerland, India, China, the United States and South Korea.