R. STAHL, the technology leader in explosion protection, is continuing its growth path with order intake at an all-time high in the first quarter of 2014. New orders increased by 7.1 % to EUR 88.4 million (previous year EUR 82.6 million), mainly driven by increased demand from the oil and gas sector as well as the specialty shipbuilding sector. Regionally, R. STAHL profited from the dynamic growth in Asia/Pacific and the Americas. In addition, R. STAHL received a highly competitive bulk order for explosion-protected LED strip lights in India during the first quarter.
"R. STAHL is entering a dynamic growth phase in 2014 as our strategic investments in internationalization and the development of innovative new products and solutions begin to pay off," said Martin Schomaker, CEO of R. STAHL AG. "With this good start into the year, we will be able to move forward strongly in the coming months. We will consistently take advantage of market opportunities and leverage our technology leadership and international position to continue our profitable growth. We have laid a strong foundation with our investment program."
Schomaker continued: "Accordingly, for the first time we are announcing our mid-term targets that underpin this profitable growth. By 2016, among other goals, we are aiming for sales in the order of EUR 380 million to EUR 390 million and an EBIT margin of 11 % to 12 %".
In the first quarter of 2014, the strongest growth in order intake stemmed from the Asia/Pacific region, with an increase of 43.8 % to EUR 17.9 million (previous year: EUR 12.5 million). The company was awarded several major projects in the region and saw good demand in the Gulf Region as well as in Australia. Especially important was the order from the Indian conglomerate Reliance Industries Ltd. (RIL) to supply explosion-protected LED lights for the Jamnagar Complex, one of the world's largest refineries. This order has a value of EUR 2.7 million and includes significant potential for recurring business. In addition, as part of this project R. STAHL received orders for several thousand installation and control devices. The second strongest region were the Americas, where order intake increased by 10.1 % to EUR 17.4 million (previous year: EUR 15.8 million). Demand developed especially well in the U.S. and Brazil, mainly driven by the oil and gas industry. In Europe, order intake totaling EUR 35.0 million was slightly below the year-ago quarter (previous year: EUR 36.1 million). R. STAHL benefited from maintenance and follow-up orders from the oil and marine industries. However, this could not fully offset the slightly weaker dynamics in individual markets. In Germany, the order situation remained stable at EUR 18.1 million (previous year: EUR 18.2 million).
The company's strongest regional sales growth occurred in Germany, where sales rose 11.3 % to EUR 16.9 million (previous year: EUR 15.2 million). Thus, Germany accounted for about a quarter of total sales. In the rest of Europe, sales declined by 6.3 % to EUR 32.2 million (previous year: EUR 34.3 million), mainly due to the postponement of deliveries. In the Americas, sales decreased by 18.1 % to EUR 9.2 million (previous year: EUR 11.2 million), indicating that customers were less willing to make investments in the second half of 2013, especially in Canada and Brazil. The restrained capital spending at that time also weakened the business in the Asia/Pacific region. Accordingly, sales were down by 17.9 % to EUR 9.3 million (previous year: EUR 11.3 million).
The improved sentiment within our customers' industries and the significant increase in new orders in the first quarter will, however, have a positive impact on R. STAHL's sales and earnings for the full year of 2014.
The investments in future growth are reflected in earnings. Earnings before interest and taxes (EBIT) declined to EUR 1.8 million (previous year: EUR 5.6 million). The EBIT margin amounted to 2.7 % (previous year: 7.7 %). Earnings before taxes (EBT) amounted to EUR 1.0 million (previous year: EUR 4.7 million). The EBT margin was 1.4 % (previous year: 6.6 %).
"You must seed before you can harvest. R. STAHL made investments of EUR 45 million over the last two years that will pay off in the long term. The strong order situation in the first quarter confirms our strategy and demonstrates our great potential. We will work diligently in the coming quarters to take advantage of market opportunities, continue to fill our order book and utilize our newly created capacity as much as possible. In addition, we will further optimize our processes. We are convinced that this approach will have a significant impact on our earnings and profitability," said Bernd Marx, CFO of R. STAHL AG.
For the first time, R. STAHL is also announcing its mid-term goals, which extend to the end of fiscal year 2016 and underpin the strategic expansion investments and growth potential. The company is aiming for sales to increase to EUR 380 million to EUR 390 million by 2016. This represents an average annual sales growth (CAGR 2013-2016) of 7.7 % to 8.6 %. R. STAHL's goal is to grow profitably. The EBITDA margin is expected to be in a range between 15 % and 16 % and the EBIT margin is expected to lie within a range of 11 % to 12 %.
To implement these objectives, R. STAHL is pursuing four strategic measures: The accelerated development of innovative products and systems for explosion protection is part of this strategic program, as is the expansion of its presence in consumer industries and growth regions. Moreover, the company is constantly working to strengthen its position as a technology leader. In addition, R. STAHL is taking measures to improve processes and optimize costs by focusing on continuous improvements in efficiency.
The full report for the first quarter of 2014 is available on the company's website as a download.
Bernd Marx (CFO)
Nathalie Dirian (Investor Relations)
e-mail: [email protected]
08.05.2014 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG.The issuer is solely responsible for the content of this announcement.DGAP's 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|