Encouraging recovery in the second half

Regulated information
Kortrijk, Belgium, 12 February 2015 – Today Barco (Nyse/Euronext: BAR; Reuters: BARBt.BR; Bloomberg: BAR BB) announced results for the six and twelve month periods ended 31 December 2014.

Fiscal year 2014 financial highlights (for the group including Defense & Aerospace)
- Sales were 1,051.0 million euro, a decrease of 9.2% compared to 1,158.0 million euro in 2013.

- Incoming orders were 1,011.2 million euro, a decrease of 12.1% compared to 1,150.5 million euro in 2013.

- EBITDA [1]  was 128.6 million euro, compared to 153.2 million euro in 2013. EBITDA margin was 12.2%, compared to 13.2% for 2013.

- EBIT [2]  was 38.2 million euro, compared to 79.0 million euro in 2013. EBIT margin was 3.6%, compared to 6.8% for 2013.

- Net income was 27.8 million euro, compared to 59.4 million euro a year ago. In addition to lower EBIT, an increased tax-rate and restructuring charges contributed to the decline.

- Free cash flow for 2014 was 10.1 million euro versus 70.2 million euro for 2013.

- Net financial cash position was 63.4 million euro at the end of the year (before the divestiture of Defense & Aerospace) compared to 104.4 million euro at the end 2013.

Quote of the CEO, Eric Van Zele
“Following a disappointing first semester, Barco delivered more encouraging results for the second half of 2014.  With 553 million euro in sales and 74 million euro in EBITDA the company essentially generated the same performance in the second half of 2014 as last year."

“Once again, Barco’s Entertainment & Corporate division was the strongest contributor with ClickShare fuelling exponential growth in the corporate segment and Barco’s digital projectors consolidating their global leading position in the Cinema and Venues & Hospitality markets.  Also Healthcare and Industrial & Government returned in the second half to growth with increases in sales and profitability whereas LiveDots continued to decline.”

“In 2014 the company undertook a strategic review of its businesses, assets and investments.  As a result, Barco divested its Orthogon and Defense & Aerospace businesses and pruned product development projects which no longer fit its return criteria. As a more streamlined organization focused on three core businesses - Entertainment, Enterprise and Healthcare – Barco has considerable means to invest in new internal and external growth initiatives and to return to profitable growth.”

Outlook 2015
The following statements are forward looking and actual results may differ materially.

Barco remains cautious about its outlook for 2015.  Assuming the euro remains at current levels, management expects flat to single digit growth in sales.

On the basis of the improved performance in the second half 2014 management expects also to deliver improved profitability for the full year.  

Dividend and Share Buy Back
The Board of Directors will propose to the General Assembly to increase the dividend from 1.50 euro to 1.60 euro per share to be paid out in 2015, supported by the available cash resources in the company.

In line with Barco’s long term strategy to strengthen its global leadership position and to realize the company’s growth potential, the Board has decided to preserve most of the company’s financial resources for internal and external growth investments and does not plan to authorize another share buy back program after the current program expires in May 2015.

Conference call
Barco will host a conference call with investors and analysts on 12 February 2015 at 9:00 a.m. CET (3:00 am EST), to discuss the results of 2014. Eric Van Zele, CEO, Carl Peeters, CFO and Carl Vanden Bussche, IRO, will host the call.

An audio cast of this conference call will be available on the Company’s website www.barco.com by 12:30 p.m. Brussels time (6:30 a.m. EST).

For more details, check out the full press release.

About Barco
Barco, a global technology company, designs and develops networked visualization products for the Entertainment, Enterprise and Healthcare markets. Barco has its own facilities for Sales & Marketing, Customer Support, R&D and Manufacturing in Europe, North America and APAC. Barco (NYSE Euronext Brussels: BAR) is active in more than 90 countries with 3.250 employees worldwide. Barco posted sales of 1.051 billion euro in 2014.

For more information and the annual report 2014, please visit the Company’s website at www.barco.com 

© Copyright 2015 by Barco

[1] EBITDA referenced in this press release is EBITDA before restructuring

[2] EBIT referenced in this press release is EBIT before restructuring

For more information, please contact

Carl Vanden Bussche
Vice President Investor Relations
Barco nv

Telephone +32 56 26 23 22