init innovation in traffic systems AG

EANS-News: init innovation in traffic systems AG
init continues on course for growth

init continues on course for growth - Karlsruhe-based telematics specialist for buses and trams anticipates further double-digit growth in 2010 - Order volume of EUR 132m tops prior year by 17% - Sales revenues in 2009 up by 16% to EUR 65m, profit increased by 38% to EUR 8.3m - Share at all-time high, dividend of EUR 0.30 close to doubling (2009: EUR 0.16)

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annual result

Subtitle: init continues on course for growth - Karlsruhe-based telematics specialist for buses and trams anticipates further double-digit growth in 2010 - Order volume of EUR 132m tops prior year by 17% - Sales revenues in 2009 up by 16% to EUR 65m, profit increased by 38% to EUR 8.3m - Share at all-time high, dividend of EUR 0.30 close to doubling (2009: EUR 0.16)

Karlsruhe (euro adhoc) - Karlsruhe/Frankfurt, 30 March 2010. init innovation in traffic systems AG (ISIN DE 0005759807) continues on course for growth. The Managing Board of the Karlsruhe-based telematics specialist for buses and trams is expecting further double-digit growth in 2010. "The foundation of growth in our sector along with record levels of orders and the significant number of project tenders worldwide will keep us steady and moving forward towards further growth," init founder and CEO Dr. Gottfried Greschner said on presentation of the company´s financial statements at today´s press conference in Frankfurt. According to the annual report now presented, 2009 proved to be the best year in the 27-year history of the company listed in the Prime Standard of Deutsche Börse - in more ways than one. It also was the fifth record year in a row. Revenues rose by over 16% to EUR 65m (2008: EUR 56m). The most significant growth due to ongoing major projects involving the equipment of vehicles with hardware and software was noticed in Europe (Dublin, Oslo) and in the other countries (Dubai and Australia).

Profitability increased disproportionately

More favourable exchange rates and savings in procurement were used by init to further improve its profitability. Earnings before interest and taxes (EBIT) rose by around 37% to EUR 11.8m (2008: EUR 8.6m). After-tax profit improved by as much as over 40% to EUR 8.3m (2008: EUR 5.9m). As did the earnings per share (EUR 0.84 compared to EUR 0.60 in 2008). "While other companies are still trudging through a deep economic trough, init has reached a new peak," init CEO Greschner said in assessment of the situation.

This is also reflected in the price performance of init´s share. In 2009, the stock climbed to an all-time peak of EUR 11.30 and subsequently rose to over EUR 12. Investors buying the share early in the year were pleased to see their portfolio double by the end of December alone.

But init´s shareholders can also rejoice in the near doubling of dividends. Based on new record profit for init and growth prospects continuing intact and with dividend payments increasingly important in investment decisions of potential investors, the Managing Board and the Supervisory Board plan to propose to the shareholders´ meeting set for 12 May 2010 an increase in dividend to EUR 0.30. In 2009, init had paid EUR EUR0.16 per share.

init to put out feelers towards new markets

The Managing Board of init innovation in traffic systems AG anticipates strong, steady growth in 2010. "The demand for telematics, planning and fare collection systems for buses and trains such as developed, produced and sold by init is continuing to increase over the long term," Dr. Greschner commented. Investments in intelligent infrastructures quickly paid off, he said, as they helped local public transport providers increase their efficiency and provide a more attractive service. At the same time, they actively contributed to climate protection and the reduction of carbon dioxide emissions.

As a result, the modernisation or development of local public transport systems worldwide now features large in many state aid programmes to improve the infrastructure. Only recently, the American Senate authorised an additional approximately US$10.7bn for this purpose. Dr. Greschner: "Funds for infrastructure investments made available worldwide range in the three-digit billions. The majority of these funds is allocated to local public transport systems. In the USA, and indeed in other markets in which init has established itself over the years, we expect the number of tenders for local public transport systems to increase. The result should be a wealth of new possibilities and business opportunities arising for init."

The global economy in 2010 is predicted to grow again, albeit at a moderate level. Growth is forecast primarily for the Asian markets. "This encourages init to selectively put out feelers towards Asia to open up new markets," Dr. Greschner described the strategic target of the company in the current financial year.

Intact growth potential

In pursuing this strategy, init will focus on the customer demand. Active marketing in a new market will begin only once init has actually won a contract in that market or the latter shows definite sales potential. This strategy has proved successful most recently in the United Arab Emirates as well as in Australia and New Zealand. With init´s growth potential intact, the trend is also reflected in the volume of orders. At EUR 132m at year-end, orders were up by 17% on the previous year. Long-standing customer relations and the resulting follow-up contracts provided a solid basis for incoming business. "Based on these factors, we already have our eyes set firmly on the next peak. Our targets for the 2010 financial year include sales revenues of EUR 72m and earnings before interest and taxes (EBIT) of EUR 13m," init CEO Dr. Greschner announced.

The full annual report of init innovation in traffic systems AG is available on the Internet at www.initag.de and on the website of Deutsche Börse.

end of announcement                               euro adhoc
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Further inquiry note:

Alexandra Weiß
Investor Relations
Telefon: +49(0)721 6100-102
E-Mail: aweiss@initag.de

Branche: Semiconductors & active components
ISIN: DE0005759807
WKN: 575980
Index: CDAX, Prime All Share, Technology All Share
Börsen: Frankfurt / regulated dealing/prime standard
Berlin / free trade
Hamburg / free trade
Stuttgart / free trade
Düsseldorf / free trade
Hannover / free trade
München / free trade
Original-Content von: init innovation in traffic systems AG, übermittelt durch news aktuell

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