R. STAHL publishes the results for the first half of 2015 and reduces expectations for the medium term

R. STAHL publishes the results for the first half of 2015 and reduces expectations for the medium term

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

 

06.08.2015 08:39

 

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.

 

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R. STAHL publishes the results for the first half of 2015 and reduces

expectations for the medium term

 

Waldenburg, 6 August 2015. In the first six months of the current fiscal

year,

R. STAHL AG benefited from the record order intake in the previous year and

achieved an increase in sales of 12.0%. Compared to the first half of 2014,

EBIT increased by 22.8%. However, the low oil price can already be felt in

the order books so that order intake was 1.4% below previous year's level.

 

The Executive Board does not assume that the trend in regard to the

negative external influencing factors on the business will change in the

short term. Due to the continuously low oil price, the propensity of the

oil producing companies to invest has declined. While an increase of the

oil price could still be expected during the first quarter 2015, its low

level was further cemented in the second quarter 2015. During its meeting

in June, the OPEC, under the leadership of Saudi Arabia, confirmed its

output volumes. Moreover, the opening of the Iranian market for oil exports

puts the price of a barrel of Brent crude under further pressure. Since the

agreement in the nuclear dispute in July 2015, the oil price fell by 15%.

At the same time, China's weak economy is furthering the downward trend.

Increase of the oil prices in the short term is not in sight. For 2016, the

Executive Board expects a sideways trend.

Additionally, the crisis in the Ukraine burdens business of R. STAHL Group.

After the EU states prolonged their economic sanctions against Russia in

June 2015, no relief for the economic and political situation is currently

in sight.

The economic downturn in Brazil leads to a decline in demand in the local

R. STAHL subsidiary and subsequently to significant losses in earnings.

 

Against the background of the macro-economic business conditions, the

Executive Board assumes that the forecast sales corridor of EUR 380 million

to

EUR 390 million and EBIT margin objective of 11% to 12% cannot be achieved

until 2016. Especially the weak demand of the oil industry, one of the

major customer industries of the company, slows down business development.

For 2016, the Executive Board thus expects growth rates in the low

single-digit range. The Executive Board is still convinced that a two-digit

EBIT margin can be achieved as soon as the market environment will improve.

 

 

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Information and Explaination of the Issuer to this News:

 

Contacts:

R. STAHL AG

Am Bahnhof 30, 74638 Waldenburg (Württ. )

 

Bernd Marx (CFO)

Tel.: +49 7942 943-1271

 

Nathalie Kamm (Investor Relations)

Tel.: +49 7942 943-1395

 

E-Mail: [email protected]

 

06.08.2015 The DGAP Distribution Services include Regulatory Announcements,

Financial/Corporate News and Press Releases.

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

 

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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

 

End of Announcement DGAP News-Service

 

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