In the first six months of the current fiscal year, R. STAHL AG benefited from the record order intake in the previous year and achieved an increase in sales of 12.0%. Compared to the first half of 2014, EBIT increased by 22.8%. However, the low oil price can already be felt in the order books so that order intake was 1.4% below previous year's level.
The Executive Board does not assume that the trend in regard to the negative external influencing factors on the business will change in the short term. Due to the continuously low oil price, the propensity of the oil producing companies to invest has declined. While an increase of the oil price could still be expected during the first quarter 2015, its low level was further cemented in the second quarter 2015. During its meeting in June, the OPEC, under the leadership of Saudi Arabia, confirmed its output volumes. Moreover, the opening of the Iranian market for oil exports puts the price of a barrel of Brent crude under further pressure. Since the agreement in the nuclear dispute in July 2015, the oil price fell by 15%. At the same time, China's weak economy is furthering the downward trend. Increase of the oil prices in the short term is not in sight. For 2016, the Executive Board expects a sideways trend. Additionally, the crisis in the Ukraine burdens business of R. STAHL Group. After the EU states prolonged their economic sanctions against Russia in June 2015, no relief for the economic and political situation is currently in sight. The economic downturn in Brazil leads to a decline in demand in the local R. STAHL subsidiary and subsequently to significant losses in earnings.
Against the background of the macro-economic business conditions, the Executive Board assumes that the forecast sales corridor of EUR 380 million to EUR 390 million and EBIT margin objective of 11% to 12% cannot be achieved until 2016. Especially the weak demand of the oil industry, one of the major customer industries of the company, slows down business development. For 2016, the Executive Board thus expects growth rates in the low single-digit range. The Executive Board is still convinced that a two-digit EBIT margin can be achieved as soon as the market environment will improve.
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
E-Mail: [email protected]