The R. STAHL Group picked up momentum in the third quarter and achieved further growth in order intake, sales and earnings. The Group was thus able to successfully leave behind a first half-year marked by special situations and to refocus on its growth trajectory. This was illustrated in particular by earnings before interest and taxes (EBIT), which more than doubled compared to the first half of the year. R. STAHL posted EBIT of EUR 13.0 million in the first nine months (previous year: EUR 19.3 million). At EUR 252.8 million (previous year: EUR 232.2 million), order intake reached a new all-time high. Sales made solid progress over the first nine months; adjusted for currency effects, they increased by 2.8%.
"In the third quarter, we were able to concentrate fully on our operating business again and pursue our growth and efficiency programmes. The first benefits can be seen from third quarter earnings, which doubled the amount posted for the first six months," stated Martin Schomaker, CEO of R. STAHL AG. "We are very well prepared for further growth: order intake is up 9% on the previous year and has set another all-time high. As of the second half of the year, revenues have begun to catch up with this trend."
In terms of geographical development, the most dynamic trend was recorded in the Asia/Pacific region with growth in order intake of 55.9% to EUR 55.5 million (EUR 35.6 million). In the Americas, order intake rose by 18.5% to EUR 44.7 million (EUR 37.7 million), driven above all by strong demand in the USA; in view of the economic and political uncertainties in South America, however, business here was disappointing. In Germany, order intake amounted to EUR 50.9 million as of 30 September 2014 (EUR 51.5 million) and in Europe (excluding Germany) it reached EUR 101.7 million (EUR 107.4 million). Against the backdrop of the Crimean crisis, falling demand was recorded above all in Eastern Europe and Russia. In Norway demand has slowed down as well.
Thanks to the strong order position of the previous year, sales revenues in Germany rose by 5.2% to EUR 50.0 million (EUR 47.5 million). In Europe (excluding Germany), revenues fell by 3.9% to EUR 99.8 million (EUR 103.8 million). At EUR 36.1 million (EUR 36.5 million) revenues in the Americas were 1.3% below the prior-year figure. While sales in South America were down year on year, business in the USA continued to grow. The expansion of the company's Houston facility led to faster delivery times and provided customers with further good reasons to choose R. STAHL. By optimizing its sales concept in the USA, the company is now receiving an increasing number of orders from OEM providers.
Over the first nine months of the year, the Asia/Pacific region achieved revenue growth of 8.2% to EUR 41.3 million (EUR 38.2 million). This was largely due to a strong development in the third quarter as well as to the processing of major orders for an oil platform 100 km off the coast Sabah (Malaysia) and a liquefied natural gas project in Australia. Further dynamic growth is expected in this region over the coming months from such large-scale projects as the provision of equipment for an offshore platform near Brunei and power distribution systems for an oil production facility in the world's fourth-largest oil field off the coast of Abu Dhabi.
CFO Bernd Marx commented: "Our earnings trend in the past quarter demonstrates that our investments are beginning to pay off and that our expanded operating platform has laid the foundation for further profitable growth. We shall now build on the success of the third quarter and work hard to achieve further improvements in our profitability."
The EBIT margin for the first nine months of 2014 amounted to 5.7% (8.6%). Earnings before taxes (EBT) reached EUR 10.4 million (EUR 16.7 million) with an EBT margin of 4.6% (7.4%). Earnings per share fell from EUR 1.96 to EUR 1.23.
R. STAHL expects strong regional differences in economic growth over the coming months. Due to the political uncertainties in Russia and Eastern Europe, business in this region is likely to be sluggish. The falling oil price may also affect the investment decisions of energy corporations in certain areas. In the USA and the Asia/Pacific region, R. STAHL expects further strong demand and high utilisation of capacity.
Although the fourth quarter is traditionally not as strong as the third, the company confirms its guidance for the fiscal year 2014: R. STAHL is targeting an order intake of EUR 325 million to EUR 335 million and revenues of EUR 315 million to EUR 325 million. We are still confident of reaching our forecast range for EBIT of EUR 18.0 million to EUR 22.0 million. The medium-term forecast, which extends to the end of fiscal year 2016, also remains valid.
Key Figures of R. STAHL Group
The full report for the first nine months of 2014 is available on the Company's website for download.
About R. STAHL - www.stahl.de
Bernd Marx (CFO)
Nathalie Dirian (Investor Relations)
e-mail: [email protected]
06.11.2014 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|