R. STAHL, leading supplier of products and systems for explosion protection, today publishes the results for the first quarter 2016:
- Order intake reached EUR 70.8 m (previous year: EUR 88.4 m)
- At EUR 71.7 m, sales was as planned (previous year: EUR 82.2 m)
- Earnings before interest and taxes (EBIT) reached EUR 3.3 m (previous year: EUR 4.1 m); EBIT margin was at 4.6 % (previous year: 5.0 %)
R. STAHL's expectations in regard to the oil price development were confirmed in the first quarter of 2016. With an early adjustment of the cost side of the company, the foundation has already been laid in the second half of 2015 to be profitable again in 2016. Thanks to intensified sales activities and innovative products, R. STAHL could win orders in new customer segments, outside of the oil and gas industry, in the first quarter of 2016. The expert in explosion protection is a reliable partner for its customers, in difficult economic times as well - with its expertise, R. STAHL advises its customers on new technologies and system solutions so that the customers can achieve long-term savings potentials.
Oil price dampens order intake
As expected, order intake did not reach the high level of the previous year, due to an oil price development that is unfavourable for R. STAHL. In Germany, order intake was EUR 16.3 m (previous year: EUR 17.8 m). Favourable news is that for the first time, a municipality became an R. STAHL customer in the reporting period. Furthermore, R. STAHL could win an attractive order on the delivery of cameras for the monitoring of a German tank farm in Full HD. In the central region (excl. Germany), order volume, EUR 32.1 m, was on last year's level (previous year: EUR 32.4 m). In the Americas, the market situation remained strained: order intake at EUR 9.0 m could not achieve last year's level (previous year: EUR 14.4 m). However, the company could win some follow-up orders of oil producing companies in the north of Canada. In region Asia/Pacific, order intake declined to EUR 13.4 m (previous year: EUR 23.8 m). Major projects, which were meant to be awarded during the first quarter, have been postponed and are expected to be awarded in the course of the year. First orders for our LED clean room luminaires gave some positive impulses. This product has been developed especially for the pharmaceutical industry and it shows that the initiatives to increasingly penetrate this market yield results. Many of the major projects that could be won in 2015 provided for an order backlog of EUR 95.2 m at the beginning of 2016. This very high amount gives us a good backing for a difficult year 2016. We could already produce and deliver many orders during the first quarter, so order backlog declined to EUR 91.8 m as at 31 March 2016.
Sales as planned
Due to the continuously weak demand, owing to the low oil price, sales during the reporting period was lower than last year, at EUR 71.7 m (previous year: EUR 82.2 m). However, the development of sales revenues nevertheless meets R. STAHL's expectations: sales in the first quarter is within the target corridor. In Germany, the year started positively: sales revenues increased by 3.6 % to EUR 15.9 m (previous year: EUR 15.4 m) from January to March. The many orders for LED luminaires are evidence of the success of the marketing campaign for this product segment. With a volume of EUR 31.8 m, the central region (excl. Germany) had the largest share of the Group sales (previous year: EUR 34.5 m). At EUR 8.4 m, sales in the Americas was below previous year's value (previous year: EUR 14.5 m). Due to the high production costs, the oil industry in North America is particularly hard hit by the continuously low oil prices. In region Asia/Pacific, sales revenues amounted to EUR 15.6 m during the first quarter of 2016 (previous year: EUR 17.8 m), mainly generated from follow-up orders which R. STAHL could win in South Korea and in the UAE.
Thanks to the cost reduction measures, the EBIT is within the planned scope
As early as 2015, R. STAHL reacted to the market development and initiated a comprehensive cost reduction programme. Thanks to these measures, the decline in sales could be largely compensated in earnings. In the first quarter 2016, EBIT reached EUR 3.3 m (previous year: EUR 4.1 m). These cost reduction measures could in part already be felt in the first three months of the current business year: compared to the total operating performance, the cost of materials declined to 33.9 % (previous year: 34.4 %). Compared to last year, the personnel costs declined by 11.3 %. On 31 March 2016, EBIT margin based on sales revenues amounted to 4.6 % (previous year: 5.0 %). EBT reached EUR 2.6 m (previous year: EUR 3.5 m) and EBT margin was at 3.6 % (previous year: 4.3 %). Further savings, especially in the material costs and the production costs, should further improve the rate of return in the course of the business year.
Solid equity base
As at 31 March 2016, R. STAHL's equity ratio amounted to 34.4 % (31 December 2015: 36.2 %). Long-term liabilities increased by 5.6 %. Reason for this increase was the rise in provisions for pension obligations, as the underlying interest rate declined as of 31 March 2016. The long-term assets were on last year's level, while the short-term assets increased by 3.6%. Due to a number of deliveries in March, the accounts receivables increased by 4.9 % as at the balance sheet day.
Full-year forecast confirmed
For the current fiscal year 2016, the expert in explosion protection expects a sideward movement of the oil price and thus no significant change in the investment behaviour of the customers in the oil and gas industry. Even with stable oil prices, positive impulses from the maintenance business may be expected: regular maintenance and overhaul are indispensable to ensure the safety of man, machine and the environment. R. STAHL will continue the sales initiatives that have already been started and will increasingly approach customers in the pharmaceutical and chemical industry. In order to reduce dependence on the oil and gas sector, R. STAHL will exploit further market potentials by offering products for marine lighting in the Non-Ex area as well. For the full year 2016, R. STAHL experts order intake and sales between EUR 280 m and EUR 290 m.
Profitability will furthermore be increased by innovative and high-margin new products and with a continuous optimization of material costs and production costs, and efforts to improve margins will be increased. The forecast corridor 2016 for the EBIT is between EUR 14 m and EUR 20 m.
As external influences on our business may change within a very short time, the forecast uncertainty is higher.
R. STAHL AG invites all interested analysts, investors and journalists to take part in our conference call on occasion of the publication of the quarterly figures on 10 May 2016 at 10 a.m. Please dial the following phone number: DE: +4969222229043 UK: +442030092452 USA: +18554027766
The conference call will be supplemented by a presentation via the Internet. Please log on as a participant entering http://www.audio-webcast.com/cgi-bin/login.ssp?fn=verify_user&curPassword=rstahl0516, insert your full name and company and the following PIN: 16790194#.
A recording of the conference will subsequently be provided on the company www.r-stahl.com/investor-relations/presentationsrecordings.html
The major key figures of R. STAHL Group
pursuant to IFRS
| ||Q1 2016 in EUR m||Q1 2015 in EUR m||Change in %|
|Total sales||71.7||82.2||- 12.7|
|Europe excl. Germany||31.8||34.5||- 7.9|
|Asia / Pacific||15.6||17.8||- 12.3|
|Order intake||70.8||88.4||- 19.8|
|Order backlog||91.8||99.7||- 8.0|
|EBITDA margin (in %)||9.0||9.0|| |
|EBIT margin (in %)||4.6||5.0|| |
|EBT (earnings before taxes)||2.6||3.5||- 27.3|
|EBT margin (in %)||3.6||4.3|| |
|Period surplus||1.8||2.4||- 24.2|
|Net earnings per share (in EUR)||0.28||0.41||- 31.7|
|Operating cash flow||2.6||- 0.6|| |
|Employees as at 2016-03-31 (excl. trainees)||1,847||1,962||- 5.9|
| || || || |
| ||2016-03-31||2015-12-31|| |
| || || || |
|Liquid funds||18.0||16.5||+ 9.1|
|Equity ratio (in %)||34.4||32.7|| |
The full report on the first three months in 2016 is available for download on the company website www.stahl.de
Financial calendar 2016
03 June Annual general meeting in Neuenstein
11 August Report on the first half of 2016
10 November Report on the third quarter
About R. STAHL - www.stahl.de
R. STAHL is the world's leading supplier of electrical and electronic products and systems for explosion protection. These products and systems prevent explosions in hazardous areas and contribute to the safety of people, machines and the environment. The portfolio ranges from products used in switching/distributing, installing, operating/monitoring, lighting and signalling/alarming up to automation. Typical customers operate in growth industries, such as the oil & gas industry, the chemical and pharmaceutical industry and the food industry. In 2015, global sales amounting to EUR 312.9 million were generated with about 1,894 employees. The shares of R. STAHL AG are traded on the Regulated Market/Prime Standard of Deutsche Boerse (ISIN DE000A1PHBB5).
R. STAHL AG
Am Bahnhof 30, 74638 Waldenburg (Württ.)
Bernd Marx (CFO)
Phone: +49 7942 943 1271
Carmen Kulle (Investor Relations)
Phone: +49 7942 943 1395
E-Mail: [email protected]
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