IHC Merwede increases revenue and profit

The company’s international outlook and expanding portfolio has also maintained a strong order book for 2012 and beyond.

In the past year, IHC Merwede’s revenue has increased by 4% to reach €1.05bn, with net profit rising to €103m, with a solvency ratio of 40%, demonstrating that IHC Merwede is in strong financial health and able to implement its growth strategy. With sales amounting to €1.057bn, the company assured itself of a substantial order book of €1.18bn, the equivalent of more than a one year workload.

Internationalisation continues to be an important priority for IHC Merwede as it succeeded in reducing costs. The company is continuing to expand its capabilities and portfolio through acquisitions and by forging links with other organisations to help build long lasting customer partnerships.

Market developments

Despite the uncertainty created by Europe’s financial crisis, the rest of the world’s markets, such as South America, Africa and Asia, are still growing, which made it possible for IHC Merwede to continue strengthening its position within the international maritime industry.

Although the short term outlook is hesitant, especially for the European dredging market, the long term outlook is more positive. There are many ongoing projects around the world, and markets in China and India are continuing to grow. However, it is taking longer for these customers to make purchasing decisions and there is fierce competition.

The renewable energy market is also offering many opportunities to IHC Merwede, especially offshore wind and tidal power.

Strategy

IHC Merwede has four strategic priorities; growth, internationalisation, product and process development, and internal and external cooperation. Growth has been achieved by expansion into the different markets of dredging, mining, offshore and renewable energy.

The trend towards increased internationalisation continued in 2011. The number of projects assembled outside The Netherlands is growing, allowing the company to deliver its customary quality ships on schedule through an impressive logistical process.

A good example is the build of the 12,000m3 trailing suction hopper dredger, Chang Jiang Kou 01, at IHC Merwede’s Kinderdijk shipyard in the Netherlands and its sister vessel, Chang Jiang Kou 02, which was constructed at the Daoda Heavy Industry shipyard in Qidong, China.

The company will continue to spend 3% of its revenue in innovation and product development in 2012.

Regarding process development, IHC Merwede has reorganised its shipbuilding activities and created a new approach to its business, the product market combination (PMC) structure, which has brought it even closer to the market.

Revenue: €1.05bn

Net Profit: €103m

Sales: €1.057bn

Order Book: €1.18bn