Roth & Rau reduces 2010 EBIT

The company said its EBIT has declined to €3 million, as opposed to the €13.1 million seen in the same period in 2009, because of “unscheduled amortizations and increase of provisions”.

It added that "the probable cancellation of turnkey-projects in India, in the third quarter, already partially realized turnovers had to be booked into the own stocks and depreciated."

Further negative impacts, it said, have been caused by delays in connection with the execution of two turnkey-projects in Spain, as well as depreciations of working capital and allocations to provisions.

Moreover, Roth & Rau reports that additional development expenses were caused in the context of a key account project, during which a new production step within mass production was realized.

Not all was negative however, with the company experiencing a growth of 18.6 percent in turnover, reaching €189.2 million.

In terms of the 2010 business year, Roth & Rau AG says it now expects an EBIT of approximately €9 million to €9.5 million. Its adds that its sales forecast, however, remains unaltered at €285 million.

The final figures regarding the business development of the first nine months and the third quarter are scheduled to be published next Monday.