R. STAHL Group made good use of the strong dynamics within its customer industries in the second quarter to strengthen its market position. In the first half-year R. STAHL reported a 6.9% increase in order intake to EUR 169.0 million (previous year: EUR 158.2 million) and reached a new record level. The Company benefited above all from the strong demand by customers in the oil and gas industry as well as the chemical sector.
"We made good use of the strong dynamics in our customer industries to attract new orders, thereby setting a record for order intake in the first half of this year. We enjoyed the strongest growth in Asia/Pacific where we invested heavily in our market presence and locations over the past months. On the other hand, business developments were significantly held back in the second quarter. Efforts to defend our independence diminished our ability to pursue growth at the desired pace. We will best possibly use the second half of the year to get back up to our speed. However, we will realise certain milestones later than planned," said Martin Schomaker, CEO of R. STAHL AG.
The Asia/Pacific region accounted for the greatest increase in new orders in the first half of 2014: Orders rose by 53.0% to EUR 38.3 million (previous year: EUR 25.0 million). Included here were orders for ships with production and storage units, so-called Floating Production Storage and Offloading Units (FPSO), in Singapore. In America R. STAHL reported an 8.3% increase in orders to EUR 28.8 million (previous year: EUR 26.5 million). Of particular note here is that R. STAHL has been commissioned to supply explosion-protection components for the first IECEx-certified FPSO order in the Gulf of Mexico. The fact that R. STAHL was awarded this contract confirms the reputation and expertise that the Company has earned in the field of IECEx technology. In Europe order intake declined by 7.9% from the previous year's level to EUR 67.8 million. This was primarily attributable to the weaker demand in Norway. Nonetheless, R. STAHL placed new orders with oil companies in Scandinavia as well as with various customers in Southern Europe. In Germany order intake rose by 3.5% to EUR 34.1 million (previous year: EUR 32.9 million) and benefited from an upward trend in the second quarter.
With respect to the various regions, sales grew strongest in Germany with an increase of 8.4% to EUR 33.2 million (previous year: EUR 30.6 million). The home market accounted for about one fourth of total sales. In the rest of Europe sales fell by 4.3% to EUR 66.6 million (previous year: EUR 69.7 million). The Asia/Pacific region developed dynamically in the second quarter. However, on a half-year basis sales in the region were 4.7% below prior year and amounted to EUR 24.1 million (previous year: EUR 25.3 million). In America sales remained relatively stable at EUR 22.5 million (previous year: EUR 22.7 million), growing robustly in the second quarter.
The Company expects that the dynamic development within the customer industries and the increase in order intake in the second quarter will have a positive effect on the income and earnings picture of R. STAHL in the second half of the year.
In the first half of 2014 R. STAHL launched operations in Malaysia and fitted plants in the Netherlands, Norway and Waldenburg with additional machinery. The investment volume for the first six months amounted to EUR 8.8 million. The Company also increased the number of skilled employees to meet the growing order volume while assuring high quality demands. Against the backdrop of underproportional revenue growth, the personnel cost ratio - in relation to overall costs - increased to 39.9% (previous year: 36.3%).
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 was focused primarily on the takeover attempt. Sales generated by the lighting business suffered as a consequence, and this also 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.
Earnings before taxes (EBT) came to EUR 3.9 million (previous year: EUR 10.0 million), the EBT margin was 2.6% (previous year: 6.8%).
Against this backdrop the Executive Board is revising the forecast for earnings before interest and taxes (EBIT) for 2014 from originally EUR 24 million to EUR 26 million to EUR 18 million to EUR 22 million.
Based on the high volume of orders and sustained dynamic demand, the Board is confirming the forecast for order intake and sales. R. STAHL is targeting order intake valued at between EUR 325 and 335 million and sales of between EUR 315 and 325 million for the current financial year.
The forecast for 2015 and 2016 remains unaffected by the extraordinary events of the current financial year. The mid-term guidance thus remains unchanged. R. STAHL is well positioned for profitable growth and is focusing on four strategic measures: accelerated development of innovative products and systems for explosion protection, increased presence in customer industries and in growth regions, strengthening technological leadership and increasing capacity utilisation and efficiency.
The full report for the first half of 2014 is available on the Company's website www.stahl.de for download.
About R. STAHL - www.stahl.de
Bernd Marx (CFO)
Nathalie Dirian (Investor Relations)
e-mail: [email protected]
07.08.2014 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:||Regulierter Markt in Frankfurt (Prime Standard), Stuttgart; Freiverkehr in Berlin, Düsseldorf, Hamburg, München|
|End of News||DGAP News-Service|