DGAP-News: R. Stahl AG / Key word(s): Final Results
PRESSEINFORMATION / PRESS RELEASE
R. STAHL publishes audited figures for FY 2017: Declining sales weigh on earnings, Group-wide efficiency program initiated
- Sales decline 6.3 percent to EUR268.5 million, EBIT pre exceptionals* drops to EUR-6.7 million
- Net profit of EUR-21.2 million additionally burdened by around EUR11 million from adjustment of tax related balance sheet items
- Effective management of working capital drives free cash flow to EUR8.2 million
- No dividend proposal for FY 2017 due to net loss
- Group-wide efficiency program "R. STAHL 2020" initiated
- Outlook for FY 2018: EBITDA pre exceptionals to increase by mid-to-high double digit percentage
Waldenburg, 12 June 2018 - R. STAHL, leading supplier of products and systems for explosion protection, today publishes the audited results for fiscal year 2017. Compared to the preliminary figures that were published on 2 March 2018, sales remain unchanged, while earnings before interest and taxes (EBIT) pre exceptionals came in at EUR-6.7 million.
Sales trend down, Central region and Americas weak
Compared to the previous year, sales fell by 6.3 percent to EUR268.5 million (2016: EUR286.6 million). There were differences in the regional trends: in Germany and Asia, sales were largely on a par with the previous year, while sales in the Central region and the Americas fell sharply. In addition to falling volumes and pressure on prices, this trend was exacerbated by adverse exchange rate fluctuations. Sales in all quarters failed to reach the corresponding prior-year figures.
In Germany, there was a moderate year-on-year decline in sales of 0.7 percent to EUR60.9 million in 2017 (2016: EUR61.3 million). Sales in the Central region fell by 8.5 percent to EUR120.7 million (2016: EUR131.9 million), due in particular to the very strong previous year. As in 2016, sales suffered the strongest percentage decline of 19.1 percent to EUR29.0 million in the Americas region (2016: EUR35.8 million). This was once again due to weak order intake in the preceding period - above all in our project business and with companies serving the oil production industry. Further contributing factors included delays in the technical clarification of orders. In the reporting period, Asia was the only region to report slight growth. Compared to the previous year, sales were raised by 0.6 percent to EUR57.9 million (2016: EUR57.6 million).
Low sales weigh heavily on earnings
The weak sales trend in 2017 had a significant impact on earnings: at EUR-10.7 million, earnings before interest and taxes (EBIT) were around EUR20 million below the prior-year figure (2016: EUR8.8 million). In addition to the fall in sales, this was also due to exceptionals of EUR-4.0 million, compared to a positive contribution from exceptionals of EUR1.4 million in the previous year. EBIT pre exceptionals therefore came in at EUR-6.7 million (2016: EUR7.4 million), and EBITDA pre exceptionals at EUR5.8 million (2016: EUR20.7 million). The unexpectedly weak net profit of EUR-21.2 million (2016: EUR4.2 million) includes adjustments to the recoverability of deferred taxes on loss carryforwards which led to an additional burden of around EUR11 million. In sum, this resulted in earnings per share of EUR-3.28 for 2017 (2016: EUR0.64).
Strong free cash flow
Group-wide efficiency program "R. STAHL 2020" initiated
- Creation of a global corporate organization with standardized Group-wide processes
- Optimization of the R. STAHL product portfolio
- Harmonization of global IT-systems
This program will enable R. STAHL to create the necessary conditions and scope to fully exploit the opportunities for sustainable and profitable growth arising in its markets. The implementation of the measures is aimed to be completed by the end of 2019.
Significant improvement in earnings expected for FY 2018
* 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
Key figures of R. STAHL Group pursuant to IFRS
1) Central region: Africa and Europe without Germany
As of June 12, 2018 the annual report for FY 2017 will be available for download on the company's website under r-stahl.com/en/global/corporate/investor-relations/ir-news-and-publications/financial-reports/.
Investors' and analysts' conference call of R. STAHL AG on the results of FY 2017 and Q1 2018
Please dial the following number to join the call and provide the following PIN as well as your full name and company when prompted:
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Financial calendar 2018
Über R. STAHL - www.r-stahl.com
The shares of R. STAHL AG are traded on the Regulated Market/Prime Standard of Deutsche Boerse (ISIN DE000A1PHBB5).
Dr. Thomas Kornek
|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|
|End of News||DGAP News Service|