R. STAHL lowers EBIT forecast for 2016

ADHOC Announcement pursuant to Article 17 MAR R. STAHL lowers EBIT forecast for 2016 Waldenburg, 09

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

 

09.11.2016 17:39

 

Disclosure of an inside information according to Article 17 MAR,

transmitted by DGAP - a service of EQS Group AG.

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

 

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ADHOC Announcement pursuant to Article 17 MAR

 

R. STAHL lowers EBIT forecast for 2016

 

Waldenburg, 09 November 2016 - As at 30 September 2016, R. STAHL AG

achieved order intake amounting to EUR 215.5 m and generated sales revenues

of EUR 213.3 m. While order intake and sales thus are within the planned

corridor for the full year 2016, the profit situation of the company

deteriorated significantly in the third quarter of 2016.

Until now, mainly the companies in the oil production sector have been

affected by the low oil price; now, companies in the subsequent industry

sectors increasingly come under pressure. This customer group now reacts

with savings programmes and the postponement of projects. On the explosion

protection market, this development leads to a lower order volume,

intensified competition and an increased pricing pressure. The consequence

for R. STAHL is fewer orders and declining margins.

Especially in the Americas and in region Asia/Pacific, sales revenues

dropped more strongly than expected, which led to an insufficient coverage

of fixed costs in these regions. A change in the product mix of sales,

favouring low-margin products, additionally burdened the profit situation.

 

Due to the above mentioned factors, the profit situation deteriorated

significantly in the third quarter 2016, against expectations. The savings

in regard to personnel, material and production costs that have been

implemented up to now cannot completely compensate for the decline in

sales. The Executive Board of R. STAHL AG thus adjusts the forecast for the

full year 2016: The figures for order intake and sales will remain

unchanged between EUR 275 to 285 m. The forecast corridor for EBIT will be

reduced to EUR 6 to 8 m (until now: EUR 11 to 15 m). This results in an

EBIT margin of 2 to 3 % (until now: 4 to 5 %).

 

With focus on the years 2017 and 2018, the Executive Board positions the

company to reach the former profitability again, irrespective of a recovery

in the oil and gas sector.

 

Detailed information on the figures of the first three quarters in 2016

will be published on 10 November 2016.

 

 

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Information and Explanation of the Issuer to this News:

 

Contact:

R. STAHL AG

Am Bahnhof 30, 74638 Waldenburg (W├╝rtt.)

 

Bernd Marx (CFO)

Phone: +49 7942 943-1271

 

Carmen Kulle (Investor Relations)

Phone: +49 7942 943-1395

 

E-mail: [email protected]

 

09.11.2016 The DGAP Distribution Services include Regulatory Announcements,

Financial/Corporate News and Press Releases.

Archive at www.dgap.de

 

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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, Tradegate Exchange

 

End of Announcement DGAP News-Service

 

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