- Sales decline in Q2 2020 by €5.8 million or 8.8% year-on-year to €59.7 million in line with expectations
- Cost control dampens impact on earnings: EBITDA pre exceptionals moderately down by €1.5 million to €3.9 million
- Outlook confirmed: Solid order backlog and increasing demand expected to yield a noticeable recovery - sales in the second half of 2020 should not come in below €135 million after €125 million in the first six months of the year
Waldenburg, 6 August 2020 - R. STAHL, leading supplier of products and systems for explosion protection, today publishes final figures for Q2 2020.
"The world economy has seen an unprecedented drop in the first half of 2020. This particularly affected the oil, gas and chemicals sectors - which are of highest importance when it comes to explosion protection. We assume that we have seen this year's trough in our business in the second quarter and expect a stabilization in the second half with sales significantly above the level of the first six months", said Jürgen Linhard, member of the Executive Board of R. STAHL.
From a regional perspective, the Americas and Asia/Pacific, which have high exposures to the oil and gas sector that was particularly hit by the coronavirus pandemic, saw double-digit percentage declines especially in the day-to-day business. Though R. STAHL was able to keep its operations largely running through early preventive measures aimed at protecting employee health and maintaining ability to supply, delays in transport and receipt of goods at some customers led to postponed sales. As a result, finished and unfinished products increased by €5.0 million compared to last year's end.
The balance of other operating income and expenses improved in Q2 2020 to €-8.0 million (Q2 2019: €-8.8 million). This also reflected the reduction in legal and consulting costs booked as exceptionals.
Depreciation and amortization of intangible assets and property, plant and equipment in the quarter under review stood at €4.2 million (Q2 2019: €3.3 million). Overall, the EBIT registered a decline by €1.5 million to €-0.6 million (Q2 2019: €0.9 million).
The financial result improved by €0.3 million to €-0.5 million in Q2 2020 (Q2 2019: €-0.8 million). The higher income from the ZAVOD Goreltex investment made a particular contribution to this. In addition, reduced interest expenses arising from the building lease at the Waldenburg site and for pension provisions helped to reduce the costs.
Earnings before income taxes fell by €1.2 million in the second quarter of 2020 to €-1.1 million (Q2 2019: €0.1 million). Income taxes were incurred at the same level as in the previous year at €-0.9 million (Q2 2019: €-0.9 million).
Compared to the end of last year, net debt (excluding pension provisions and excluding lease liabilities) increased to €10.3 million, mainly due to the increase in inventories (31 December 2019: €4.2 million).
With €79.7 million, the order backlog at the end of the reporting period remained at the prior quarter's high level (31 March, 2020: €79.9 million).
Based on the currently foreseeable development of the most significant key markets for R. STAHL, the Executive Board specifies the outlook for 2020. We continue to stick to our assumption that sales should not drop more than 5% year-on-year. The previous sales corridor from €260 million to €275 million is narrowed to a range from €260 million to €265 million. EBITDA pre exceptionals is expected to come in in the low double-digit million Euro range, unchanged to the previous outlook. This assessment reflects the solid order backlog as at the end of the reporting period as well as the expectation that material amounts of the currently increased inventory of finished products will be sold during the current year.
Key Figures R. STAHL Group for Q2 2020 pursuant to IFRS
1) Africa and Europe excl. Germany
2) Exceptionals: restructuring charges, non-scheduled depreciation and amortization, charges for design and implementation of IT-projects, M&A costs as well as profit and loss from the disposal of non-current assets no longer required for business operations
3) excl. pension provision and excluding lease liabilities
4) excl. apprentices
Percentages and figures in this report may include rounding differences. The signs used to indicate rates of change are based on economic aspects: improvements are indicated by a "+" sign, deteriorations by a "-" sign. Rates of change >+100% are shown as >+100%, rates of change <-100% as "n/a" (not applicable).
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Financial calendar 2020
About R. STAHL - www.r-stahl.com
R. STAHL AG
Dr. Thomas Kornek
Senior Vice President Investor Relations & Corporate Communications
Am Bahnhof 30
74638 Waldenburg (Württ.)
Tel. +49 7942 943-1395
06.08.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
|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, Tradegate Exchange|
|EQS News ID:||1111203|
|End of News||DGAP News Service|