R. Stahl AG / Key word(s): Half Year Results
R. STAHL publishes results for first half of 2015 - sales up 12%
- Order intake adversely affected by subdued demand from oil industry
- Measures initiated for short-term capacity adjustments
Waldenburg, 6 August 2015 - R. STAHL, leading supplier of products and systems for explosion protection, today published its results for the first half of 2015:
- Order intake down 1.4% year on year at EUR 166.6 million (previous year: EUR 169.0 million).
- Sales growth of 12.0% to EUR 164.0 million (previous year: EUR 146.5 million).
- Earnings before interest and taxes (EBIT) up 22.8% to EUR 6.8 million (previous year: EUR 5.6 million) with an EBIT margin of 4.2% (previous year: 3.8%).
- Guidance for full year sales and earnings development confirmed.
In the first six months of the current fiscal year, R. STAHL benefited from its high order intake of the previous year to achieve significant revenue growth. However, demand has cooled noticeably in the reporting period and order intake is down on the previous year. The company's CEO Martin Schomaker states: "Persistently low oil prices are affecting the investment behaviour of our customers in the oil production industry. Moreover, the prolongation of economic sanctions against Russia is also dampening our prospects in this region."
Subdued development in Europe - Asian business continues to grow
In terms of order intake, the only encouraging signs in the first six months came from the Asia/Pacific region - although momentum here also slowed after the first quarter: order intake rose by 5.4% to EUR 40.4 million (previous year: EUR 38.3 million). R. STAHL raised order volumes in Australia, Korea and the Middle East in particular. In Germany, order intake in the six months ending 30 June 2015 was on a par with the previous year at EUR 34.2 million (previous year: EUR 34.1 million). At EUR 65.3 million, orders received in Europe (excluding Germany) were down by 3.8% (previous year: EUR 67.8 million). Low oil prices are placing a burden on business throughout Europe - the profitability of oil producers is suffering above all in Norway. In addition, demand is being hampered by the Ukraine crisis. There has been a significant fall in orders received by German engineering companies whose exports to Russia are affected by the trade embargo. In the Americas, orders picked up slightly compared to the first quarter. At EUR 26.8 million, however, order intake in the first six months was 6.8% down on the same period last year (previous year: EUR 28.8 million). Due to economic and political instability, demand in South America - especially Brazil - remains weak. In North America, however, business once again made encouraging progress.
At EUR 95.4 million, the order backlog on 30 June 2015 was 11.2% higher than on the same date last year (previous year: EUR 85.8 million).
Expansion costs continue to burden earnings
At EUR 6.8 million, earnings before interest and taxes (EBIT) were up 22.8% on the previous year (EUR 5.6 million). The EBIT margin for the first six months of 2015 amounted to 4.2% (previous year: 3.8%). Pre-tax earnings (EBT) reached EUR 5.4 million (previous year: EUR 3.9 million), corresponding to an increase of 40.9%. The EBT margin amounted to 3.3% (previous year: 2.6%).
Increase in equity ratio
Outlook: R. STAHL upholds guidance for 2015 - measures initiated for short-term capacity adjustments
The underutilization of production capacities has led to an increase in relative fixed costs. In order to counteract this development, measures have been initiated which will quickly reduce expenses. A substantial component is the temporary reduction of the weekly working hours to 30 hours at the Waldenburg facility. At the same time, R. STAHL reduces the capacity of temporary workers on short notice.
In terms of sales activities, the company will focus more strongly on measures for the chemical and pharmaceutical industry. In the oil and gas industry, greater emphasis will be placed on regions with low production costs.
For fiscal year 2015, the company is upholding its forecast on order intake and sales revenues between EUR 320 million and EUR 330 million. Against the backdrop of the cost reduction programmes already initiated, the company expects to reach the lower end of its EBIT forecast of EUR 16 million to EUR 20 million.
The development in the recent months significantly impaired expectations for R. STAHL for a recovery of the market conditions in 2016. Against the background of the continuation of the expansionary policy of the OPEC, the weak economy in China and a possible opening of the Iranian oil market, the company sees no opportunities that the oil price will rise crucially in the near future. An improvement of the economic and political situation between Russia and the EU, as well as the macro-economic conditions in Brazil is not foreseeable as well. That is why the Executive Board of R. STAHL is reducing its medium-term expectations for the fiscal year 2016. In view of the fact that several negative external influencing factors have deteriorated, the targeted revenue of EUR 380 million to EUR 390 million with an EBIT margin of 11% to 12% is no longer achievable until 2016. The Executive Board is still convinced that an EBIT margin between 11% and 12% may be achieved as soon as the market environment will improve.
Key figures of R. STAHL Group according to IFRS
The full report for H1 2015 is available for download on the company's website www.stahl.de.
Financial calendar 2015
5 November Q3 report
About R. STAHL
Bernd Marx (CFO)
Nathalie Kamm (Investor Relations)
E-mail: [email protected]
2015-08-06 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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|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|
|End of News||DGAP News-Service|