R. STAHL reduces operating EBIT prognosis for 2016

R. Stahl AG  / Key word(s): Change in Forecast10.08.2016 18:27Disclosure of an inside information according to Article 17 MAR,transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.---------------------------------------------------------------------------R. STAHL reduces operating EBIT prognosis for 2016Waldenburg, 11 August 2016 - R. STAHL AG as of 30 June 2016 generated orderintake of EUR 150.2 million and reached sales revenues of EUR 142.5 million. Compared to the previous year this signifies a declinein sales of EUR 21.5 million. The decline resulted from cutbacks ininvestments and cost-saving measures of the oil and gas industry whichsuffers from the low oil price. Due to the successful implementation of thecost-saving programme initiated in autumn 2015, the company realized costreductions of EUR 12.2 million in the first six months of 2016. Theprogramme consists of cost savings in personnel expenses, which wereimplemented in 2015 and cost savings in material and production cost.Thanks to these cost reductions the negative impact on the contributionmargin that resulted from the decline in sales could largely becompensated. R. STAHL's EBIT amounted to EUR 5.3 million as of30 June 2016 (previous year: EUR 6.8 million), the EBIT-margin reached 3.7%(previous year: 4.2%).So far mainly the oil production industry, the so-called upstream industry,reacted with cutbacks in capital investment and pressure on prices to thelow oil price. In the financial reports for the second quarter of 2016 bigoil corporations now also announced slumps in the refining business, theso-called downstream industry. This explains the most recently restrictivemarket behavior of R. STAHL's customers in this sector.R. STAHL Group will consequently pursue the initiated measures to secureprofitability. Nevertheless, the Executive Board expects an additionalburden on sales and margins from the downstream business. Due to theexpectable deterioration of the development in the downstream industry, theExecutive Board of R. STAHL AG reduces the operating EBIT prognosis for theentire financial year 2016 from EUR 14 - 20 million to EUR 11 - 15 million.The Executive Board now expects values of EUR 275 - 285 million for orderintake and sales revenues (previous prognosis: EUR 280 - 290 million).Detailed information on the first half of 2016 will be published on 11 August 2016.---------------------------------------------------------------------------Information and Explanation of the Issuer to this News:Contact:R. STAHL AGAm Bahnhof 30, 74638 Waldenburg (Württ.)Bernd Marx (CFO)Phone: +49 7942 943-1271Carmen Kulle (Investor Relations)Phone: +49 7942 943-1395E-mail: [email protected] The DGAP Distribution Services include Regulatory Announcements,Financial/Corporate News and Press Releases.Archive at www.dgap.de--------------------------------------------------------------------------- Language:     EnglishCompany:      R. Stahl AG              Am Bahnhof 30              74638 Waldenburg              GermanyPhone:        +49 (7942) 943-0Fax:          +49 (7942) 943-4333E-mail:       [email protected]:     www.stahl.deISIN:         DE000A1PHBB5WKN:          A1PHBBListed:       Regulated Market in Frankfurt (Prime Standard), Stuttgart;              Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg,              Munich, Tradegate Exchange End of Announcement                             DGAP News-Service ---------------------------------------------------------------------------