R. STAHL is reducing its forecast for 2015 and adopting a comprehensive set of measures to safeguard competitiveness over the long term

ADHOC RELEASE pursuant to Article 15 Securities Trading Act (WpHG) R. STAHL is reducing its forecast

R. Stahl AG / Key word(s): Change in Forecast/Miscellaneous

 

06.10.2015 11:26

 

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted

by DGAP - a service of EQS Group AG.

The issuer is solely responsible for the content of this announcement.

 

---------------------------------------------------------------------------

 

ADHOC RELEASE pursuant to Article 15 Securities Trading Act (WpHG)

 

R. STAHL is reducing its forecast for 2015 and adopting a comprehensive set

of measures to safeguard competitiveness over the long term

 

Waldenburg, 6 October 2015 - R. STAHL AG today announced that it is

reducing the forecast for 2015. The reason for this is the continuously low

oil price. This has resulted in the oil and gas industry - the most

important customer sector for R. STAHL accounting for around 50% of sales -

significantly reducing its investments. It is the sharpest decline in

investments since the oil crisis 30 years ago. The company is therefore

expecting a decline in order intake as well as sales and earnings during

the second half of 2015. No recovery of the oil and gas market is

foreseeable for 2016.

 

For the fiscal year 2015, the Executive Board is adjusting the forecast

corridor for order intake and sales from between EUR 320 million and EUR

330 million down to between EUR 300 million and EUR 310 million.

Expectations for EBIT are reduced from between EUR 16 million and EUR 20

million down to between EUR 2 million and EUR 5 million. These figures

include one-off costs amounting to EUR 8 million from the implementation of

the set of measures. By adjusting the forecast, the Executive Board reacts

to a market environment which has recently deteriorated drastically.

 

For 2016, the Executive Board is anticipating a sustained low investment

volume in the oil and gas industry and is therefore planning sales in the

range of EUR 280 million to EUR 290 million with an EBIT margin in the

amount of 5 % to 7 %.

 

R. STAHL AG has adopted a comprehensive set of measures with the objective

of counteracting the tense economic development, and strengthening and

safeguarding competitiveness over the long term. During the fiscal year

2016, the company expects this to yield cost-savings in the amount of about

EUR 20 million. A total of 225 jobs will be cut worldwide as a result of

the personnel measures. The company will continue to drive ongoing

initiatives to generate additional business in industry sectors chemicals,

pharmaceuticals and marine with the aim of further reducing dependency on

the oil price. In addition, the product portfolio will be streamlined and

products for which demand is less strong will be removed. Today, the

Supervisory Board of R. STAHL AG granted the required consent to the set of

measures and the adjusted forecast in an extraordinary meeting.

 

 

---------------------------------------------------------------------------

 

Information and Explaination of the Issuer to this News:

 

For further information:

R. STAHL AG

Am Bahnhof 30, 74638 Waldenburg (Württ.)

 

Bernd Marx (CFO)

Phone: +49 7942 943-1271

 

Nathalie Kamm (Investor Relations)

Phone: +49 7942 943-1395

 

E-mail: [email protected]

 

06.10.2015 The DGAP Distribution Services include Regulatory Announcements,

Financial/Corporate News and Press Releases.

Media archive at www.dgap-medientreff.de and www.dgap.de

 

---------------------------------------------------------------------------

 

Language: English

Company: R. Stahl AG

Am Bahnhof 30

74638 Waldenburg

Germany

Phone: +49 (7942) 943-0

Fax: +49 (7942) 943-4333

E-mail: [email protected]

Internet: www.stahl.de

ISIN: DE000A1PHBB5

WKN: A1PHBB

Listed: Regulated Market in Frankfurt (Prime Standard), Stuttgart;

Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg,

Munich

 

End of Announcement DGAP News-Service

 

---------------------------------------------------------------------------