R. STAHL, leading supplier of products and systems for explosion protection, today published its audited results for fiscal year 2014 and confirmed the preliminary figures already published:
- Record order intake of EUR 335.2 million (previous year: EUR 304.1 million)
- Sales up to EUR 308.5 million (previous year: EUR 304.4 million)
- Earnings before interest and taxes (EBIT) reach EUR 18.3 million (previous year: EUR 24.9 million), EBIT margin of 5.9% (previous year: 8.2%)
- Net profit of EUR 9.8 million (previous year: EUR 15.4 million), corresponding to earnings per share of EUR 1.67 (previous year: EUR 2.59)
- Executive Board and Supervisory Board propose a dividend of EUR 0.80 (previous year: EUR 1.00) per share
- External factors make guidance more uncertain
Compared to the dynamic trend in order intake, there was only slight growth in sales of 1.4% to EUR 308.5 million (previous year: EUR 304.4 million). The key growth driver for sales in the reporting period was the Asia-Pacific region, where revenues rose by 13.2% to EUR 56.4 million (previous year: EUR 49.8 million). There was also a positive trend on the American market with sales growth of 4.2% to EUR 52.8 million (previous year: EUR 50.6 million). Whereas the South American market remains challenging, there was encouraging success in the USA. Business in Germany continued to benefit from the strong demand of the previous year with sales up 2.8% to EUR 66.8 million (previous year: EUR 65.0 million). The weakest trend was reported by the Central region (without Germany), where sales fell by 4.6% to EUR 132.5 million (previous year: EUR 139.0 million). In addition to the ongoing economic problems of southern Europe, developments in this region were further hampered by the Ukraine crisis. At 78.4%, the proportion of foreign sales was virtually unchanged from the previous year (78.7%).
CFO Bernd Marx explains: "We regard the development of our business in the Americas and Asia as a result of our expansion strategy. As sales in India grow, economies of scale at our new production plant in Chennai become more apparent. With our in-depth local knowledge, we are attracting customers and establishing ourselves as a top-quality partner in the region. One example of this was the order we received to supply new LED lights for a large refinery and petrochemicals complex on India's north-west coast. In 2014, we also completed the expansion of our facility in Kuala Lumpur and transformed our Malaysian subsidiary into a hub for Southeast Asia." The expansion of the company's site in Houston/Texas also helped it win additional orders. With the aid of an optimized sales concept, the US subsidiary focused more on OEM providers with a resulting positive impact on sales in the USA. Just one year after the US Coast Guard announced its intention to accept the IECEx standard for mobile platforms under foreign flag, R. STAHL received its first order for an IECEx-certified FPSO in the Gulf of Mexico.
From the point of view of R. STAHL's client industries, 2014 was marked by major upheavals on the commodity markets. In countries with high production costs, such as Norway and the USA, low oil prices have reduced the propensity to invest in new equipment. At the same time, however, customers in other sectors - such as the chemical and pharmaceutical industries - are benefiting from lower commodity prices. The effects of the low oil price will translate to a lower demand for R. STAHL's explosion protected products and systems with a delay of certain months.
Due to the high order backlog and large number of long-term project orders, the volume of finished and unfinished goods increased and led to a rise in working capital in 2014. At the end of the reporting period, trade receivables had also grown to a high level as a result of revenue growth in the fourth quarter. As a result, cash flow from operating activities fell from EUR 27.4 million to EUR 3.1 million. Cash flow from investing activities amounted to EUR 18.6 million in 2014 (previous year: EUR 24.2 million). The year-on-year decline indicates that the majority of expansion projects have now been implemented. In Waldenburg, the extension of the new research and development centre was completed on budget. In August 2014, construction work began on the joint production and development centre for the two subsidiaries R. STAHL HMI Systems GmbH and R. STAHL Camera Systems GmbH in Cologne. It is expected to be completed in 2015.
Cash and cash equivalents fell from EUR 25.0 million in the previous year to EUR 15.8 million as of 31 December 2014. The increase in the present value of pension obligations reduced equity capital. The reason is a decline in the underlying interest rate in Germany from 3.7% in the previous year to 2.0% as of 31 December 2014. Equity was also reduced by the buyback of shares representing 2% of share capital in the first half of 2014. As a result, the equity ratio fell from 37.1% to 27.3%.
"We will complete our investment programme in 2015 and improve returns as capacity utilization increases," commented Bernd Marx. The focus will be on exploiting economies of scale.
With its strong market standing and high order backlog, the company is well prepared for the current year. Internal measures to increase profitability are being overshadowed, however, by the development of external factors. As a result, only a cautious outlook is possible. Due to persistently low oil prices, the company faces falling demand from its most important client industry. Margins will also suffer as the oil industry puts further pressure on prices. For the fiscal year 2015, order intake and sales revenues of between EUR 320 million and EUR 330 million are expected. The forecast range for EBIT is between EUR 16 million and EUR 20 million. As the external factors, which influence business, can change very quickly, these forecasts are subject to a high degree of uncertainty.
Key figures of R. STAHL Group
* Dividend proposal for AGM to be held on 22 May 2015.
The conference can be joined via telephone under +49 69 247503443. In parallel presentation slides will be displayed on the internet at eventmanager.meetyoo.de (PIN: 86802645).
An audio cast of the call will be available thereafter on the company's website: http://www.r-stahl.com/investor-relations/presentationsrecordings.html
About R. STAHL
Bernd Marx (CFO)
Nathalie Dirian (Investor Relations)
Frank Schwarz (Investor Relations)
2015-04-14 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:||Regulated Market in Frankfurt (Prime Standard), Stuttgart; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich|
|End of News||DGAP News-Service|