R. STAHL, a leading supplier of products and systems for explosion protection, today published its audited results for financial year 2013 and confirms its announced preliminary results:
- Revenue growth of 4.6 % to EUR 304.4 million (EUR 290.9 million).
- Earnings before interest and taxes (EBIT) unchanged at EUR 24.9 million (EUR 24.9 million), EBIT margin of 8.2% (8.6%).
- Net income for the year increased by 8.0% to EUR 15.4 million (EUR 14.3 million), earnings per share increased to EUR 2.59 (EUR 2.43).
- Cash flow from operations grew by 31.3% to EUR 27.4 million (EUR 20.9 million).
- Management and supervisory board propose a dividend of EUR 1.00 EUR per share.
- For 2014, the company anticipates modest revenue growth and stable EBIT.
R. STAHL's target sectors showed a generally stable to positive development in 2013, however with significant variation in the different regions: the economic environment in certain markets, such as South America and Asia/Pacific, as well as the falling oil prices in North America, resulted in reduced demand for explosion-protected products. The weakness in these areas, however, was more than compensated by strong business development in other regions, in particular the North Sea. R. STAHL benefited from its substantial installed base in Europe, as well as robust development of the company's export from the US, attributable to a solid order portfolio.
Order intake for 2013 came in at EUR 304.1 million (EUR 297.1 million), a new record high. The order backlog at the end of 2013, however, was 6.6% lower than for the end of 2012 (EUR 70.7 million). Non-German revenues accounted for 78.7% (79.1%) of the EUR 304.4 million revenues in 2013 (EUR 290.9 million).
"In 2013, we invested in our production capacities in order to improve the speed of order delivery and customer satisfaction. Globally, our investments totaled EUR 24.2 million," stated CFO Bernd Marx. "Despite higher expenses, we were able to fully finance our investments out of operating cash flow, which improved by 31.3% to EUR 27.4 million." As of the end of the year, the company's cash balance was EUR 25 million (EUR 17.6 million).
Revenue growth, however, is anticipated to be delayed in relation to the late granting of contracts. Management currently expects a clear acceleration of growth in the second half of the year, with demand particularly strong from oil and gas customers. At the same time, political uncertainties in the Middle East and Eastern Europe increase the risks for revenue variance in these important markets. Consequently, management has adjusted its growth expectations for the coming year and currently anticipates revenues to grow by 3.5% to 6.8% to EUR 315 million to EUR 325 million. "Based on a first quarter that was behind expectations, as well as the increased macro-economic uncertainties, we felt it justified to be more cautious in our outlook. However, we see no reasons to revise our mid- and long-term growth objectives," according to CEO Martin Schomaker.
"The outlook for our target markets remains positive, and as a result we will continue to make investments aimed at strengthening our market position. In 2013, R. STAHL pushed ahead with its expansion strategy and has successfully completed the expansion of the production capacity at several of its facilities, and we intend to proceed as planned in 2014."
In assessing its performance, as of this financial year going forward, R. STAHL will change its key performance indicator from EBT to EBIT. Management considers EBIT to provide a better reflection of operational development, and the change will benefit transparency and clarity of communication with the various stakeholders. The company's international expansion resulted in growing fixed costs, which will limit profitability until full capacity utilization is reached. Furthermore, currency fluctuations constitute a risk regarding the development of the company's profitability. Corresponding to the change in revenue expectations, management has adjusted its guidance range for profitability. For 2014, management expects to achieve an EBIT ranging from EUR 24 million to EUR 26 million.
According to the stipulations of the German WpÜG management and supervisory board of R. STAHL AG will publish a statement after the publication of the official offer document. Management and supervisory point out, that neither the family consortium nor management were involved in the preparation of the offer.
* Adopted for initial application of IAS 19 rev. (2011). ** Dividend proposal for AGM to be held on 23 May 2014.
Full financials for financial year 2013 will be available for download on the company's website on 15 April 2014: www.r-stahl.com/investor-relations/financial-reports.html
Please dial the following number to join the call: +49 69 247501895
The shares of R. STAHL AG are traded on the Regulated Market/Prime Standard of Deutsche Boerse (ISIN DE000A1PHBB5).
Bernd Marx (CFO)
Nathalie Dirian (Investor Relations)
Frank Schwarz (Investor Relations)
e-mail: [email protected]
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|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|