R. STAHL AG made good use of the positive dynamics within its customer industries in the second quarter to strengthen its market position. The Company reported a 6.9% increase in order intake to EUR 169.0 million (previous year: EUR 158.2 million) and reached a new all-time high for order intake. The Company benefited above all from the strong demand by customers in the oil and gas industry as well as the chemical sector.
Due to the delay between order intake and sales realization, the positive development of orders is not yet reflected in the sales figures. In the first half-year R. STAHL generated sales of EUR 146.5 million (previous year: EUR 148.3 million). The slight decline compared to the previous year was due to the slow first quarter as well as to currency translations related to the strong euro.
Earnings before interest and taxes (EBIT) amounted to EUR 5.6 million (previous year: EUR 11.8 million) with an EBIT margin of 3.8% (previous year: 7.9%). The development of income and profitability thus remained below expectations. This was due primarily to extraordinary expenses related to the takeover attempt by Weidmüller. These special circumstances tied up the capacities of management and employees and precipitated the need for intensive talks with concerned customers. The takeover situation also led to additional costs for defensive measures and consulting services. In addition, projects aimed at increasing efficiency could not be carried out or launched as planned in the second quarter. The market introduction of the new LED lighting programme had to be postponed since the market's attention was focused primarily on the takeover attempt. Sales generated by the lighting business suffered as a consequence, and this influences results for the second quarter; it will also have an impact in the third quarter 2014. On an annual basis the direct and indirect costs resulting from these special circumstances amount to a total of approximately EUR 5 million. Around EUR 3 million were incurred in the second quarter alone. When adjusted for these special expenses the EBIT comes to EUR 8.6 million.
In the third quarter, R. STAHL will vigorously continue and initiate the growth and efficiency initiatives which were originally planned for the second quarter. However, the Executive Board does not believe that it will be possible to completely compensate for the delays in the second half or the year. In addition, the results for the third quarter will also be affected by the indirect costs of the takeover situation.
Against this backdrop the Executive Board is revising the forecast for earnings before interest and taxes (EBIT) for 2014 from originally EUR 24 to 26 million to EUR 18 to 22 million. The forecast for order intake and sales in 2014 remains unchanged after the positive development of the first half year. R. STAHL is targeting order intake valued at between EUR 325 and 335 euros and sales of between EUR 315 and 325 million for the current financial year. The mid-term guidance until the end of fiscal year 2016 remains unchanged.
R. STAHL AG
Am Bahnhof 30, 74638 Waldenburg (Württ.)
Bernd Marx (CFO)
Phone: +49 7942 943 1271
Nathalie Dirian (Investor Relations)
Phone: +49 7942 943 1395
E-Mail: [email protected]