PSI with Recovery in Energy, Value Adjustment and Restructuring in Logistics in First Six Months

  • Growth and increased EBIT in Energy Management
  • Group sales declines by 4 % to 84.2 million Euros
  • Group EBIT decreases 20 % through special effects to 2.8 million Euros

Berlin, 31 July 2014 – PSI Group attained 4 % lower sales of 84.2 million Euros (30 June 2013: 87.7 million Euros) in the first half of 2014. The EBIT in the first six months of 2014 was encumbered by special effects from the previous year in logistics and, at 2.8 million Euros, was 20 % below the EBIT of the same period for the previous year (30 June 2013: 3.5 million Euros). This includes a percentage-of-completion adjustment of one million Euros for a logistics project from 2013 and restructuring costs of about 0.5 million Euros. The group net result was, at 1.2 million Euros, 28 % below the figure for the previous year (30 June 2013: 1.7 million Euros). The previous year figure included special earnings of 0.5 million Euros from the sale of shares in the Moscow sales joint venture PSI Energo. New orders, which were characterised by a number of major international orders in the previous year, decreased to 89 million Euros (30 June 2013: 109 million Euros), the order book volume on 30 June 2014 was, with 121 million Euros, 12 % below the figure for the previous year (30 June 2013: 137 million Euros). By the end of the year management expects new orders of about 180 million Euros.

Energy Management (gas, oil, electricity, heat) attained 2 % higher sales of 30.3 million Euros (30 June 2013: 29.7 million Euros) in the first half year. The EBIT for the segment more than doubled to 1.4 million Euros compared to the previous year (30 June 2013: 0.6 million Euros). The electrical energy business could improve its result after the successful acceptance of an encumbering major project and the higher product investments of the previous year and expects additional rollout contracts for the new control system in the coming quarters. The oil and gas business was able to increase sales and profits; energy trading completed a generation change in management and made further investments in modernisation and standardisation of the product base.

Sales in Production Management (raw materials, industry, logistics) during the first six months were, at 39.1 million Euros, 9 % below the value for the previous year (30 June 2013: 43.2 million Euros). The EBIT decreased as a result of the special effects in logistics by 40 % to 1.1 million Euros (30 June 2013: 1.9 million Euros). The automotive und mechanical engineering business won important licensing orders in Germany and China, the logistics business was able to continue to improve operations, but was slowed once again by an adjustment and restructuring costs. In the metals industry business, new orders decreased compared to the previous year; for the coming quarters major orders are expected from the North American aluminium and steel industries.

In Infrastructure Management (transportation and security), sales were constant at 14.8 million Euros. The EBIT for the segment decreased to 0.9 million Euros (30 June 2013: 1.7 million Euros). In Southeast Asia sales and profits were below expectations, major contracts are expected here in the second half of the year.

The number of employees in the group was reduced by 17 to 1,687 in the course of the second quarter (31 March 2014: 1,704, 30 June 2013: 1,667). As a result of the weaker group result, the cash flow from operating activities was, at –2.4 million Euros, below the figure for the previous year (30 June 2013: –1.6 million Euros). Liquidity decreased to 17.1 million Euros (30 June 2013: 23.9 million Euros).

In the first half year the PSI Group invested 0.9 million Euros in a new release of the group platform that allows the customer to configure user interfaces, menus and data views themselves. In addition, preparations for the next major release and tests for the web and cloud capability of the PSI products based on these were made. PSI expects a further recovery of Energy in the coming quarters on the basis of control systems products, encumbrances from the first Chinese mine project and additional orders from the booming metals industry in the USA. The management is conducting intensive negotiations about the acquisition of a competitor (about 70 employees and 9 million Euros sales) in the Production Management segment and has signed a letter of intent on 30 July 2014.

On the basis of its own software products, PSI AG develops and integrates complete solutions for energy management (gas, oil, electricity, heat, energy trading), production management (mining, metals, automotive, mechanical engineering, logistics) and infrastructure management for transport and safety. PSI was founded in 1969 and employs 1,700 persons worldwide.