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NYSE:SRL 7.71 -0.03 -0.42% Volume: 4,337 December 5, 2022

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KHD Humboldt Wedag International Ltd. Updates Impacts of Economic Crisis on Order Backlog


HONG KONG, Dec. 8 /PRNewswire-FirstCall/ -- KHD Humboldt Wedag International Ltd. (NYSE: KHD) today announced results of its initial review of economic crisis impacts on its order backlog. As mentioned in our third-quarter conference call, the rapid and dramatic changes in world credit markets and the global recession have had an impact on our customers' capital expenditure programs and some have requested variations in their contractual arrangements. We have now had an opportunity to evaluate the effects of those changes on our order backlog.

Our order backlog at September 30, 2008 was $1.068 billion. As of December 5, 2008 we can confirm that officially cancelled orders amounted to $50.8 million and orders officially postponed by more than one year amount to $18.0 million. We have another $164.2 million of contract value at risk, meaning we have had verbal indications from customers that contract variations or cancellations are a possibility. This is an interim report; there may be further negative impacts of the economic crisis on our backlog.

CEO Jim Busche commented, "During this period of worldwide economic volatility and uncertainty we will continue to focus on preserving KHD's equity and cash. We will also continue to work closely with our customers as they adjust their budgets and plans in reaction to market demands. We will continue to target opportunities where we judge the returns to be reasonable and the risks to be controllable. This balanced approach to business opportunities has resulted in improving gross profit margins and has allowed us to maintain a balance sheet with low debt and high levels of liquidity."

CFO Alan Hartslief commented, "We have made it a priority to focus on cash flow and the reduction of expenses through cutting SG&A expenses, without affecting our ability to service existing contracts and pursue new ones; allocating resources depending on geographical needs; focusing on markets and equipment that will return the highest gross profit margins; and minimizing customer risk."

About KHD Humboldt Wedag International Ltd.

KHD Humboldt Wedag International Ltd. owns companies that operate internationally in the industrial plant engineering and equipment supply industry, and specializes in the cement, coal and minerals processing industries. To obtain further information on the Company, please visit our website at

Disclaimer for Forward-Looking Information

Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the Company's future growth, results of operations, performance and business prospects and opportunities. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management's current views and are based on certain assumptions. These assumptions, which include management's current expectations, estimates and assumptions about certain projects and the markets the Company operates in, are expressed or implied by the forward-looking statements, including, but not limited to: (1) a continuing downturn in general economic conditions in Russia, Asia, Europe, the United States and internationally, including the worldwide economic downturn resulting from the effects of the sub-prime lending and general market causes, volatile energy costs, decreasing consumer confidence and other factors, (2) a decreased demand for the Company's products, (3) a decrease in the demand for cement, minerals and related products, (4) the number of competitors with competitively priced products and services, (5) product development or other initiatives by the Company's competitors, (6) shifts in industry capacity, (7) fluctuations in foreign exchange and interest rates, (8) fluctuations in availability and cost of raw materials or energy, (9) delays in the start of projects included in our forecasts, (10) delays in the implementation of projects included in our forecasts and disputes regarding the performance of our services, (11) the uncertainty of government regulation and politics in Russia, Asia and the Middle East and other markets, (12) potential negative financial impact from regulatory investigations, claims, lawsuits and other legal proceedings and challenges, and (13) other factors beyond the Company's control. Additional information about these and other assumptions, risks and uncertainties are set out in the "Risks and Uncertainties" section in our Form 6-K filed with the Securities and Exchange Commission and our MD&A filed with Canadian security regulators.

     Contact Information:
            Allen & Caron Inc.
            Rene Randall
            Joseph Allen
            (investors)     KHD Humboldt Wedag International Ltd.
            1 (212) 691-8087             1 (604) 683-8286  ex 224
            Brian Kennedy
            1 (212) 691-8087

SOURCE KHD Humboldt Wedag International Ltd.

/CONTACT: Investors, Joseph Allen , +1-212-691-8087,,
or Media, Brian Kennedy , +1-212-691-8087,,
both of Allen & Caron Inc., for KHD Humboldt Wedag International Ltd.; or
Rene Randall of KHD Humboldt Wedag International Ltd., +1-604-683-8286, ext 224,
/Web site: /

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