R. STAHL publishes preliminary figures for fiscal year 2016: Sales as well as earnings before interest and taxes (EBIT) slightly above outlook, order intake within expected range
- Sales decrease by 8.4 % compared to the previous year to EUR 286.6m (2015: EUR 312.9m).
- EBIT more than doubles to EUR 8.4m (2015: EUR 3.9m)
- Order intake reaches EUR 282.9m (2015: EUR 335.2m, -10.8 %), order backlog on Dec. 31, 2016 down 15.2 % to EUR 80.7m (Dec. 31, 2015: EUR 90.5m).
- Sales and EBIT to increase slightly in 2017 compared to prior year
R. STAHL, leading supplier of products and systems for explosion protection, today publishes preliminary figures for fiscal year 2016. The company generated sales of EUR 286.6m and an EBIT of EUR 8.4m, slightly exceeding the updated guidance for both sales (EUR 275m to EUR 285m) as well as EBIT (EUR 6m to EUR 8m). Order intake came in at EUR 282.9m within the forecasted corridor of EUR 275m and EUR 285m.
In the year 2016, suppliers of the oil and gas sector, which is also R. STAHL's largest selling market, were facing their biggest sales crisis since decades. Oil producers and processors had massively cut investments as a result of an even further decreased oil price in 2016 compared to previous years. Consequently, R. STAHL's sales in regions with big oil and gas occurences, the americas and asia, have been hit the hardest, with sales declining 27 percent and 23 percent, respectively, compared to the previous year. In contrast, sales in Europe grew by 6 percent, also as a result of the company's ongoing efforts to further diversify its customer base towards the chemical and pharmaceutical industry. The significant increase in EBIT compared to last year is driven by various factors. Firstly, prior year's EBIT was burdened by exceptional costs of EUR 7.5m stemming from a cost cutting program that was initiated in fiscal year 2015. Secondly, EBIT in fiscal year 2016 benefited from the savings from this cost cutting program that lead to a permanent cost reduction of about EUR 20m annually. In addition, an exceptional income of EUR 1.2m, including a property sale, contributed to the EBIT increase in fiscal year 2016.
"With the ongoing diversification of our customer base we are progressing towards our goal to reduce our dependency from the oil and gas sector as well as the oil price. For this purpose we want to further strengthen our existing market positions, complemented through innovations, to generate growth again." says R. STAHL CEO Martin Schomaker. "In addition, and even more than already in the past, we continue to see selective acquisitions as a key element to strengthen our business and as another pillar of our growth strategy."
CFO Bernd Marx commented: "Despite a massive decline in sales with high margins we have been able to increase earnings. This is particularly the result of the cost cutting program that we have initiated in the prior year. We will continue to take all necessary actions to increase R. STAHL's profitability, putting us into the best possible position to exploit our growth opportunities."
Outlook for 2017
1) Preliminary figures; the final and full figures as well as the Annual Report 2016 will be published on April 21, 2017.
Dr. Thomas Kornek
22.02.2017 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. Archive at www.dgap.de
|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|