R. STAHL publishes results for fiscal year 2015
- Sales revenues remain robust while order intake declined
- One-off expenses for cost-cutting measures affected earnings
- New anchor-investor RAG-Stiftung Beteiligungsgesellschaft mbH
- Outlook on 2016 confirmed
Waldenburg, 22 April 2016 - R. STAHL, leading supplier of products and systems for explosion protection, today published its audited results for fiscal year 2015 and confirmed the preliminary figures already published:
- Order intake of EUR 317.3 million (previous year: EUR 335.2 million)
- Sales up to EUR 312.9 million (previous year: EUR 308.5 million)
- EBIT of EUR 3.9 million (previous year: EUR 18.3 million), EBIT-Margin at 1.2 % (previous year: 5.9 %)
- Operating EBIT - adjusted by one-off expenses caused by the cost-cutting measures - of EUR 11.4 million
- Executive Board and Supervisory Board propose a dividend of EUR 0.60 (previous year: EUR 0.80) per share
While there was a slight growth in sales of 1.4 % to EUR 312.9 million, order intake slightly declined to EUR 317.3 million (previous year: EUR 335.2 million). Due to the persistently low oil price, investments of the oil industry were cancelled or postponed resulting in a decreasing demand for explosion-protected products and systems. Especially in regions with high production, oil producers' (upstream oil and gas industry) propensity to invest decreased. Whereas in the Americas and central region (without Germany) order intake dropped, R. STAHL succeeded to strengthen its position in the Asia-Pacific region. The subsidiary in India developed particularly well. R. STAHL India supported the increased order intake figures by winning the biggest Indian refinery as a customer who placed a major order.
Overall, order intake grew by 7.1 % and reached EUR 76.7 million (previous year: EUR 71.6 million). In Canada and the USA low oil prices led to a reduced demand in the second half of 2015. Order intake declined by 26.3 % to EUR 42.5 million (previous year: EUR 57.6 million).
In the central region (without Germany) the low oil price put a strain on the oil producers' business developments. This trend reflected on R. STAHL's order intake figures: with EUR 129.4 million, it fell by 7.8 % compared to the previous year (EUR 140.3 million).
In Germany sales initiatives focusing on the chemical and pharmaceutical industries promoted growth of 4.6 % in order intake closing at EUR 68.7 million (previous year: EUR 65.7 million).
In fiscal year 2015, sales rose by 1.4 % to EUR 312.9 million (previous year: EUR 308.5 million). The key growth driver for sales was the Asia-Pacific region where revenues increased to EUR 75.1 million (previous year: EUR 56.4 million). The significant growth of 33.0 % compensated for slight declines in sales in other regions.
Sales in the central region fell by 6.2 % to EUR 124.4 million (previous year: EUR 132.6 million) due particularly to the weak order situation in northern Europe. However, R. STAHL distribution panels became part of the most northerly LNG liquefaction plant of the world located in Russia. In the Americas, sales of EUR 49.1 million remained below last year's figures (previous year: EUR 52.8 million). In South America, the weak economic climate and political instability dampened demand. In order to generate synergies in Brasil, R. STAHL forged a partnership with steute do Brasil, the Brazilian subsidiary of steute Schaltgeräte GmbH & Co. KG at the end of 2015. In Germany sales amounted to EUR 64.4 million and was down 3.6 % compared to the previous year (previous year: EUR 66.8 million).
One-off expenses for cost-cutting measures affected earnings
In 2015, EBIT amounted to EUR 3.9 million (previous year: EUR 18.3 million) and was thus 78.6 % down on the previous year. As a proportion of sales revenue, the EBIT margin reached 1.2 % (previous year: 5.9 %). Pre-tax earnings totaled to EUR 0.7 million (previous year: EUR 14.7 million). In line with the expansion programme realized between 2011 - 2015, R. STAHL increased capacities to pave the way for further growth. Due to the dampened demand of the upstream market, pressure on fixed cost increased. In order to secure R. STAHL's competitiveness in a challenging market, the Executive Board adopted a cost-cutting programme. Part of this package of measures was to adapt capacities to the current market situation. 222 jobs were made redundant in the most socially compatible manner possible. Some employment contacts will terminate in 2016 which is why the results for fiscal year 2015 only partially reflect the redundancies. Personnel expenses increased by 6.2 % to EUR 128.6 million (previous year: EUR 121.1 million) due to severance payments. Also part of the package was to reduce material and production cost. The cost-cutting programme caused one-off expenses of EUR 7.5 million - 0.5 million less than planned. Adjusted for one-off expenses related to the cost reduction programme, our operating EBIT reached EUR 11.4 million.
In January 2015, R. STAHL sold 644,000 treasury shares - representing 10 % of the company's share capital - to RAG-Stiftung Beteiligungsgesellschaft mbH. Particularly with regard to the disposal R. STAHL's equity increased to EUR 101.0 million as at 31 December 2015 (previous year: EUR 74.9 million). At the end of the reporting period, the equity ratio stood at 36.2 % (previous year: 2014: 27.3 %).
Dividend of EUR 0.60 per share proposed
At the Annual General Meeting in Neuenstein on 3 June 2016, the Executive Board and the Supervisory Board of R. STAHL AG will propose a dividend payment of EUR 0.60 per share out of the other revenue reserves. Thanks to the very good position of R. STAHL's solid equity and liquidity a dividend payment for fiscal year 2015 can be realized. This reflects R. STAHL's financial stability even in economically difficult times and indicates its confidence for the future.
Outlook - reduced guidance certainty due to economic and political instabilities
For 2016, R. STAHL will pursue two main topics: to intensify market penetration and to raise profitability. Sales initiatives to increase market penetration especially in the chemical and pharmaceutical industries have been initiated in order to partly compensate for the decline in sales of the oil and gas industry. However, the oil and gas industry will remain an import customer group and R. STAHL uses the crisis to advise customers on new technologies and give them an integrated view of the entire explosion protection chain. As turnkey solutions are more attractively priced than several individual solutions, R. STAHL can offer its customers enduring cost savings. This will strengthen R. STAHL's competitiveness and its customer relations. The company will use the growth in Asia and will continue to drive its local sales activities in this region to realize mid-term growth potential.
R. STAHL built the base to increase profitability in 2015. All in all, the package of measures to reduce personnel, material and production cost is expected to have a positive impact on earnings of around EUR 20 million as of 2016.
For financial year 2016, the Executive Board expects a sales volume of EUR 280 million to EUR 290 million. With an expected EBIT margin of between 5 % and 7 %, the forecast corridor for EBIT ranges from EUR 14 million to EUR 20 million.
As the external factors, which influence business, can change very quickly, these forecasts are subject to a high degree of uncertainty. Based on today's perspective the forecast published in October 2015 can be confirmed.
Key figures of R. STAHL Group according to IFRS
in EUR million
in EUR million
|Europe excluding Germany||124.4||132.6||- 6.2|
|Order Intake||317.3||335.2||- 5.4|
|Order backlog||95.2||90.5||+ 5.2|
|EBIT (Earnings before interest and tax)||3.9||18.3||- 78.6|
|EBIT-margin (%)||1.2 %||5.9 %|| |
|EBT (Earnings before tax)||0.7 ||14.7||- 95.1|
|EBT-margin (%)||0.2 %||4.8 %|| |
|Net Earnings||-0.1||9.8|| |
|Earnings per share (EUR)||-0.02||1.67|| |
| || || || |
|Investments in intangible assets and property, plant and equipment||23.0||18.7||+ 23.2|
|Depreciation and amortization of intangible assets and property, plant and equipment||13.5||12.8||+ 5.3|
|Cashflow from operations||18.4||3.1||+ 486.4|
|Cash and equivalents||18.3||15.8||+16.0|
| || || || |
|Equity ratio (%)||36.2 %||27.3 %|| |
|Dividend per share (EUR)||0.60*||0.80||- 25.0|
|Employees as of 31.12. (excl. apprentices)||1,894||1,942||- 2.5|
* Dividend proposal for AGM to be held on 03 June 2016.
The full report for the fiscal year 2015 will be available for download from 22 April 2016 at the company's website under www.r-stahl.com/investor-relations/financial-reports.html.
The management of R. STAHL AG will explain the results for fiscal year 2015 and give an outlook on the current fiscal year today at 10 a.m. (CET). The telephone conference will be held in German language.
Please dial the following number to join the call:
In addition to the call, R. STAHL will provide an online presentation. In order to follow the presentation, please log on as a participant on http://www.audio-webcast.com/cgi-bin/login.ssp?fn=verify_user&curPassword=rstahl0416, entering your full name and the following PIN: 16790194#.
An audio cast of the call will be available thereafter on the company's website: www.r-stahl.com/investor-relations/presentationsrecordings.html
Financial calendar 2016
10 May Q1 report
03 June Annual General Meeting in Neuenstein
11 August H1 report
10 November Q3 report
About R. STAHL
R. STAHL is one of the world's leading suppliers of electrical and electronic products and systems for explosion protection. These products and systems prevent explosions in hazardous areas and contribute to the safety of people, machines and the environment. The portfolio ranges from products used in switching/distributing, installing, operating/monitoring, lighting and signalling/alarming, up to automation. Typical customers operate in industries, such as the oil & gas industry, the chemical and pharmaceutical industry and the food industry. In 2015, global sales amounting to EUR 312.9 million were generated with about 1,894 employees. The shares of R. STAHL AG are traded on the Regulated Market/Prime Standard of Deutsche Boerse (ISIN DE000A1PHBB5).
R. STAHL AG
Am Bahnhof 30, 74638 Waldenburg (Württ.)
Bernd Marx (CFO)
Phone: +49 7942 943 1271
Nathalie Kamm (Investor Relations)
Phone: +49 7942 943 1395
Carmen Kulle (Investor Relations)
Phone: +49 7942 943 1114
E-mail: [email protected]
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