trading update - third quarter 2014

Aalberts Industries makes further progress

In the third quarter of 2014 both revenue and results increased compared to the same period last year and organic growth has been realised in both activities, Industrial Services and Flow Control. Flamco is consolidated as of 1 July 2014 and Impreglon with effect from 1 October 2014. Both companies directly contribute to the earnings per share. The bank financing has been finalised.

The market conditions for Building Installations in Europe also remained challenging in the third quarter in most countries. In North America there was a good development. The focus remains on selling specific product lines with growth potential, continuous improvement of the marketing and sales approach through enhanced cooperation and implementation of the many efficiency projects.

In the business segment Climate Control there was a good growth of revenue and results compared to last year. The bundling of distribution and sales activities has continued. In recent months also cooperation projects have started between Flamco and other activities within Climate Control. Nexus Valve, acquired in the first half of 2014, showed a good development and has now started selling European products that enhance the system portfolio in North America.

Industrial Controls realised a good third quarter with an increase in revenue and results. In particular, the industrial markets in North America and Europe and the market for beer and soft drinks performed well. The activities in the district energy and oil and gas market were at a good level. The semiconductor activities remained at the same order level as the previous quarter; some orders have been postponed to the next months.

Within the business segment Industrial Services, revenue and orders in the German automotive and machine build market remained at a good and stable level. The French market for automotive and metal and electronics was challenging. In Poland and China, a rising trend was visible compared to the first half year. The activities in the turbine and aerospace market and the oil and gas market showed good development of revenue and results.

outlook
The focus remains on continuous strengthening of the market positions and achieving sustainable profitable growth. As a result of this focus, the good order position, and the strong motivation to bring the many improvement plans to successful results, it is expected that further progress will be made in 2014 and subsequent years.