R. STAHL publishes figures for Q2 2017

Continuously growing order intake, sales and earnings still weak

R. STAHL, leading supplier of products and systems for explosion protection, today publishes figures for the second quarter 2017.

With an order intake of EUR 76.5 million, the already high level of the previous quarter was slightly exceeded (Q1 2017: EUR 75.8 million). While this represents a decline of 3.6 percent compared to the previous year (Q2 2016: EUR 79.3 million), the previous year’s second quarter particularly benefited from the intake of R. STAHL’s historically largest project order ever. The robust order intake in Q2 2017 led to a further increasing order backlog to EUR 99.9 million, reaching the prior year’s three digit level again (Q2 2016: EUR 100.0 million). However, demand from the oil and gas sector, R. STAHL’s most important customer industry, was still comparatively soft. With an increase of 2.0 percent to EUR 66.8 million, also sales were up compared to the previous quarter (Q1 2017: EUR 65.5 million) as a result of a high order backlog at the end of the first quarter 2017 as well as increasing demand in the market of explosion protected products. Compared to last year’s second quarter’s high level, though, sales went down 5.7 percent (Q2 2016: EUR 70.8 million). This also reflects the fact that around 40% of the order backlog at the end of the first six months of 2017 are not to be executed until the coming year.

As a result of the second quarter 2017’s still low sales level, also EBIT was weak, reaching -3.3 million that also included exceptionals of EUR -0.6 million.

Order intake compared to previous year down in three out of four regions, Germany with high double-digit growth
From a regional perspective, development of order intake showed a mixed picture. In Germany, orders worth EUR 22.2 million were up 45.1% on the prior-year quarter (Q2 2016: EUR 15.3 million). This was mainly due to a project order for energy distribution cabinets for a chemical plant under construction in the south of Russia. In all other regions, order intake was down on the same quarter last year. Orders in the Central region – comprising Africa and Europe without Germany – amounted to EUR 33.6 million, a year-on-year decline of 16.4% (Q2 2016: EUR 40.1 million). In the previous year, a major project in East Europe had made a significant contribution to the high level of order intake in this region. Order intake of EUR 7.5 million in the Americas was down 23.0% (Q2 2016: EUR 9.8 million). Once again, this trend reflects the strong project-driven order intake of the prior-year quarter which failed to materialize in the reporting quarter. The Asian region reported a decline in order intake of 6.4% to EUR 13.1 million (Q2 2016: EUR 14.0 million).

Due to persistently robust demand in the second quarter, order intake in the first half of 2017 was 1.4% up on the previous year at EUR 152.3 million (H1 2016: EUR 150.2 million). The increase in demand becomes even more visible when the past two half-year periods are compared: while order intake in H2 2016 was just at EUR 132.7 million, orders totaling EUR 152.3 million came in during H1 2017, a sequential increase of 14.7 percent.  

Sales still lagging behind order intake
The development of sales also showed significant differences by region in Q2 2017. With the exception of Asia, sales were down in all regions – due in particular to a decline in deliveries for project orders. The decline was strongest in Germany, where sales fell by 12.7% on the same quarter last year to EUR 13.9 million (Q2 2016: EUR 15.9 million). This was mainly due to a year-on-year decline in deliveries for project orders. There was also a double-digit fall in sales of 12.5% to EUR 30.1 million in the Central region compared to the same period last year (Q2 2016: EUR 34.4 million). Although sales in our product business rose strongly, this only partially offset the decline in project deliveries.

By contrast, the sales decline of 3.2% to EUR 7.5 million in the Americas was comparatively moderate (Q2 2016: EUR 7.7 million). In the Asian region, sales rose by 20.1% to EUR 15.2 million (Q2 2016: EUR 12.7 million). A major order for lighting solutions was delivered during the reporting quarter in this region. 

EBIT held back by reduced sales and exceptionals
As a result of comparatively low sales, there was also a decline in earnings. Though material expenses also declined 4.5 percent along with lower sales, personnel expenses increased 2.1 percent due to sector-typical pay increases as well a exceptionals in the quarter under review. Depreciation and amortization increased by 6.2% to EUR 3.2 million (Q2 2016: EUR 3.0 million). This was a result of increased depreciation of property, plant & equipment. Due to the decline in sales and increased exceptionals, earnings before interest and taxes (EBIT) fell to EUR -3.3 million in the second quarter of 2017 (Q2 2016: EUR 2.0 million). There was a corresponding decrease in EBIT pre exceptionals to EUR -2.7 million (Q2 2016: EUR 1.8 million). 

Free cash flow improved compared to previous year
As a result of the decline in net profit, cash flow in the second quarter of 2017 fell to EUR -0.6 million (Q2 2016: EUR 3.5 million). Working capital was down by EUR 0.8 million, due in particular to the decline in receivables. As a consequence, cash flow from operating activities improved to EUR 0.3 million in the reporting quarter (Q2 2016: EUR -1.2 million). In the previous year, a strong rise in receivables was mainly responsible for increasing working capital by EUR 4.7 million. Cash flow from investing activities of EUR -2.9 million was down EUR 0.3 million on the same quarter last year (Q2 2016: EUR -3.2 million), resulting in an improvement in free cash flow to EUR -2.6 million (Q2 2016: EUR -4.4 million). 

Outlook updated
The development of order intake and order backlog in the first six months of the year confirms our assumption that demand in the oil and gas sector is gradually picking up again, though still at a comparatively low level. In addition, our strategic measures to diversify our customer base and to grow our automation business are starting to bear fruit. However, placement of orders in the project business – that represents around one third of sales at R. STAHL – is sluggish, and technical clarifications that are necessary to start production last longer than in the past. This results in an average lead time between order intake and shipment of orders being prolonged compared to previous years. Based on this, the current order backlog that will translate into sales and earnings in 2017 together with the additional order volume and sales that are expected to come in during the second half of 2017 will not be sufficient to achieve the previous outlook for FY 2017. Since this outlook was based on assumptions of earlier sales recognition the following update is now necessary:

For FY 2017, the previous outlook of order intake in the range between EUR 295 million and EUR 305 million is confirmed. Sales are now expected to come in between EUR 270 million and EUR 280 million (previously: EUR 285 million and EUR 295 million) and EBIT pre exceptionals is expected between EUR -4 million and EUR 0 million. This corresponds to sales between EUR 138 million and EUR 148 million and an EBIT pre exceptionals between EUR 1 million and EUR 5 million for the second half of 2017. The updated outlook is based on the assumption of sales recognition according to plan, i. e. that there will be no postponements of orders that are scheduled to be shipped in FY 2017. In addition, it is assumed that there will be no major changes in demand in key customer industries, particularly that there will be no downturn in the oil and gas sector, and that exchange rates of foreign currencies that are most relevant to R. STAHL will also not change significantly.

Following analyses of the organization’s processes and structures, the Executive Board has identified possibilities for cost reductions. First measures are already being implemented.


* exceptionals: non-scheduled depreciation, impairment reversals, proceeds from the sale of non-current assets, restructuring charges, costs from portfolio activities


Key figures of R. STAHL Group pursuant to IFRS


Q2 2017

 Q2 2016 






















Foreign share (%)




Order intake




Order backlog







n. a.




n. a.

EBIT pre exceptionals



n. a.




n. a.

Net profit for the period



n. a.

Earnings per share (EUR)



n. a.

Capital expenditures




Depreciation and amortization




EBITDA in % of sales




EBIT in % of sales




EBIT pre exceptionals as % of sales




EBT in % of sales




Employees as of 30 June (without apprentices)




** Central region: Africa and Europe excl. Germany

Investors’ and analysts’ conference call of R. STAHL AG on Q2 2017

On the occasion of the publication of its Q2 2017 interim report, R. STAHL AG is pleased to invite all interested investors and analysts to participate in a conference call to be held today at 14:00 CET.

The Chief Executive Officer of R. STAHL AG, Mr. Martin Schomaker, and the Chief Financial Officer, Mr. Bernd Marx, will explain the results of Q2 2017 and will be available for questions and discussions afterwards. The conference call will be held in English language.

Please dial the following number to join the call and provide the following PIN as well as your full name and company when prompted:

DE: +4969222229043
UK: +442030092452
USA: +18554027766

PIN: 16790194#

Along with the conference call we will provide an online presentation via the internet simultaneously. Please log on as a participant with your full name and company under the following website:

Website: www.audio-webcast.com

Password: rstahl0817

Direct Link: http://www.audio-webcast.com/cgi-bin/login.ssp?fn=verify_user&curPassword=rstahl0817


Financial calendar 2017
November 09: Interim report Q3 2017


Am Bahnhof 30, 74638 Waldenburg (Wuertt.)

Dr. Thomas Kornek
Hear of Investor Relations & Corporate Communications
F: +49 7942 943-1395
E: [email protected]