The group’s hydro unit also had a ‘strong’ increase in its order book, improved backlog, and ‘good development’ in earnings before interest, taxes and amortisation (EBITA) compared to H1-’08.
The hydro division has expended over the last few years, especially with the acquisition of much of GE Hydro. Compared to last time, the hydro division has 607, or 11.5%, more employees.
The order intake for the division in H1 increased 37% to Euro1.05B (US$1.5B). In the second quarter, the order intake increased by 27% to Euro480M (US$687M).
Hydro’s order backlog improved by 20% to almost Euro3B (US$4.29B) in H1 from last time while other divisions suffered sharp falls.
Revenues in the hydro division were up by a third on last time in H1 to Euro650M (US$929M). In Q2, the increase was 22% to Euro334M (US$477M).
Hydro’s EBITA in the first half increased 26% to Euro37M (US$53M), though the improvement in Q2 was 2.5% to Euro16.6M (US$23.7M). However, the EBITA margin dipped in both cases to 5.7% and 5%, respectively.
Taken before depreciation, the division’s EBITDA result was up by a third to almost Euro51M (US$72.9M) in H1. In the last three months the measure imprived 22% to Euro25M (US$35.7M). The margin in the periods improved slightly in each case, to 7.8% and 7.5%, respectively.
The share of hydro revenues from service was steady at almost a quarter in H1 but increased by three percentage points to 25% in Q2.
However, despite hydro’s performance the group’s overall results were down and the outlook for the full year remains an expectation of lower revenues and net income.
The group took restructuring costs of Euro24M (US$34.3M) in H1 due to the difficulties other divisions were having in the weakened global economy.
