Today, R. STAHL AG adopted a comprehensive set of measures with the objective of strengthening and safeguarding the company's competitiveness in the long term. The company is responding to the challenging market environment of the last months, which has recently deteriorated drastically with no prospect of a recovery in 2016. Against this background, the Executive Board of R. STAHL AG has reduced its forecast for 2015 and is assuming a negative impact on order intake, sales and earnings for 2016.
The tense economic situation has been caused by 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. While the resulting weakness in demand could only be felt with a 1.4 % decline in order intake and sales still increased by 12 % in the first half of 2015, the company now anticipates a decline in order intake and sales during the second half of 2015.
Martin Schomaker, Chief Executive Officer of R. STAHL AG, commented: "If we want to secure our competitiveness in the long term, we need to act with determination now in view of this development. Unfortunately, the necessary improvement in our cost structures also requires adjustments in the number of our employees. We will act in close cooperation with employee representatives so as to make it as socially acceptable as possible."
A total of 225 jobs will be cut worldwide under the cost programme. Around 120 of these positions will be reduced at German sites, about half of which will affect temporary workers. The measures are already being prepared and are expected to be completed by the end of this year. The subsidiary companies in Asia continue to develop positively and will basically not be affected by the cost programme.
Besides the personnel measures, R. STAHL 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. In Germany, R. STAHL will close the facility it has been renting in Neu-Kupfer and concentrate its activities in Waldenburg. This decision was made some time ago, independently of the current set of measures and will now be implemented.
The Chief Financial Officer of R. STAHL, Bernd Marx, commented: "We expect the set of measures to generate cost savings in the amount of about EUR 20 million during the fiscal year 2016. These are set off against one-off costs arising from the implementation of the set of measures, which amount to EUR 8 million in the current fiscal year. Starting in 2017, the optimisation of our product portfolio should have a positive effect on earnings."
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 already include one-off costs amounting to EUR 8 million from cost adjustment measures.
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 %. Today, the Supervisory Board of R. STAHL granted the required consent to the set of measures and the adjusted forecast in an extraordinary meeting.
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Bernd Marx (CFO)
Nathalie Kamm (Investor Relations)
E-mail: [email protected]
2015-10-06 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de
|Company:||R. Stahl AG|
|Am Bahnhof 30|
|Phone:||+49 (7942) 943-0|
|Fax:||+49 (7942) 943-4333|
|Listed:||Regulated Market in Frankfurt (Prime Standard), Stuttgart; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich|
|End of News||DGAP News Service|