R. STAHL publishes the results for the first half-year 2016
- Development of the oil price confirms expectations
- Sales declined as expected
- EBIT influenced by tense market situation
- Change of forecast for full-year 2016
Waldenburg, 11 August 2016 - R. STAHL, leading supplier of products and systems for explosion protection, today publishes the results for the first half-year 2016:
- Order intake reached EUR 150.2 m (previous year: EUR 166.6 m)
- At EUR 142.5 m, sales were as planned (previous year: EUR 164.0 m)
- Earnings before interest and taxes (EBIT) reached EUR 5.3 m (previous year: EUR 6.8 m); EBIT margin was at 3.7% (previous year: 4.2%)
The first half of 2016 was dominated by the oil price crisis. The upstream-business of the oil industry was hit particularly hard by the low oil price and reacted with cutbacks on investments. As almost 50% of the Group's sales in 2015 were generated by customers in the oil and gas industry their cutbacks on investments translated into lower business volume for R. STAHL. The specialist in explosion protection recognized this development early and reacted with a restructuring programme in autumn 2015. This package of measures was successfully implemented. The development over the first six months of 2016 confirmed that the measures taken have the desired effect.
Varied picture in order intake
In Germany, order intake reached EUR 31.6 m as of 30 June 2016 (previous year: EUR 34.2 m). In Europe (excluding Germany) order intake increased by an encouraging 10.6% and stood at EUR 72.2 m (previous year: EUR 65.3 m). R. STAHL received further partial delivery calls on major orders whose master contracts had been won in the past - such as for a gas production and processing plant in Russia. R. STAHL's order intake in the Americas reflected the weak market demand. Order intake amounted to EUR 18.9 m (previous year: EUR 26.8 m). Despite this tense market situation R. STAHL succeeded in winning the first North American order for the new helideck lighting system, which has been marketed in Europe with great success since 2015. In the Asia/Pacific region order intake fell to EUR 27.5 m (previous year: EUR 40.4 m). One reason is the much slower decision process compared to the previous year. Moreover, it could be observed that customers from the downstream-sector of the oil industry recently reacted very restrictively in regards to placing project orders. By contrast, there was encouraging progress with LED luminaires produced at the R. STAHL plant in Chennai, which the Indian R. STAHL subsidiary marketed very successfully in the past six months.
Sales declined as expected
In the reporting period, sales reached EUR 142.5 m and were thus 13.1% down on the previous year (previous year: EUR 164.0 m). Due to the very strong sales trend in the first half of 2015 and the modest current market situation, this development came as expected.
In Germany, sales of EUR 31.9 m were on a par with the previous year (previous year: EUR 31.8 m). The specialist in explosion protection succeeded in offsetting the decline in sales in the oil and gas industry with new products and sales in other customer industries.
In Europe (excluding Germany) sales reached EUR 66.2 m and thus slightly exceeded the previous year (previous year: EUR 65.3 m). This trend reflects the traditionally strong basis of customers in the chemical and pharmaceutical industry.
In the Americas sales fell to EUR 16.1 m (previous year: EUR 28.2 m). This decline in sales results from the consistently weak OEM-business which suffers from postponed investments.
In the Asia/Pacific region sales amounted to EUR 28.3 m (previous year: EUR 38.7 m).
EBIT influenced by tense market situation
R. STAHL succeeded in largely offsetting the negative effects of a sales decline of EUR 21.5 m. The cost-cutting programme implemented in 2015 resulted in operating cost savings of EUR 12.2 m in the first six months of 2016. With an additional cost saving of EUR 3.0 m achieved, the Group is well on track to realize the planned savings for 2016 of EUR 20 m. As of 30 June 2016, EBIT stood at EUR 5.3 m (previous year: EUR 6.8 m). At the end of the first half-year, EBT amounted to EUR 3.9 m (previous year: EUR 5.4 m) and the EBT margin as a proportion of sales revenues reached 2.7% (previous year: 3.3%). Net profit after taxes stood at EUR 2.6 m (previous year: EUR 3.6m).
Equity impacted by increase of pension obligations
R. STAHL's equity ratio as of 30 June 2016 fell to 31.1% (31 December 2016: 36.2%). The decrease in equity is due mainly to an increase in pension obligations. The rise of EUR 9.9 m is based on the decline of the underlying interest rate. The interest rate fell from 2.42% as of 31 December 2015 to 1.56% as of 30 June 2016. The dividend distribution reduced equity by EUR 3.9 m. R. STAHL Group's equity stood at EUR 89.5 m as of 30 June 2016 (31 December 2015: EUR 101.0 m).
Total assets amounted to EUR 288.0 m as of June 2016 (31 December 2015: EUR 278.8 m).
Forecast adapted
With the cost-saving programme R. STAHL implemented by the end of 2015, the Group was successfully adapted to the decline in demand from the oil producing industry. The first half-year 2016 showed that the assessments on which the programme was based were accurate. In the second quarter 2016 it was to observe that the market behaviour of the customers in the downstream-sector became more restrictive. This decrease in demand was confirmed by the financial reports on the second quarter of 2016 recently published by major oil corporations. In their financial reports the oil corporations disclose a significant slump in margins from the refining-business.
For the second half-year of 2016 the company expects a deterioration of this development in the downstream-business. As a consequence, R. SATHL anticipates a further decline in demand and a correlating weakening of margins from this industry.
The changed market behaviour of this customer segment causes the Executive Board of R. STAHL AG to lower the targeted prognosis. For the full-year 2016 the forecast range for order intake and sales will be reduced from EUR 280 - 290 m to EUR 275 - 285 m. For operating EBIT EUR 11 - 15 m are anticipated (previous: EUR 14 - 20 m).
R. STAHL will continue to very closely monitor the market development and take measures to secure profitability and cash flow.
Conference call
R. STAHL AG invites all interested analysts, investors and journalists to take part in our conference call on occasion of the publication of the half-year figures on
11 August 2016 at 10 a.m. (CET). Please dial the following phone number:
DE: +49(0)69 2222 10637
UK: +44(0)20 3427 1920
USA: +1646 254 3374
The conference call will be supplemented by a presentation via the Internet. Please log on as a participant entering http://www.audio-webcast.com/cgi-bin/login.ssp?fn=verify_user&curPassword=rstahl0816, insert your full name and company and the following confirmation code: 3718144.
A recording of the conference will subsequently be provided on the company www.r-stahl.com/investor-relations/presentationsrecordings.html
The major key figures of R. STAHL Group pursuant to IFRS
| | H1 2016
in EUR m | H1 2015
in EUR m | Change
in % |
| Total sales | 142.5 | 164.0 | - 13.1 |
| Germany | 31.9 | 31.8 | + 0.2 |
| Europe excl. Germany | 66.2 | 65.3 | + 1.4 |
| Americas | 16.1 | 28.2 | - 42.7 |
| Asia / Pacific | 28.3 | 38.7 | - 27.0 |
| Order intake | 150.2 | 166.6 | - 9.9 |
| Order backlog | 100.0 | 95.4 | + 4.9 |
| EBITDA | 11.5 | 13.5 | - 14.9 |
| EBITDA margin (in %) | 8.1 | 8.2 | |
| EBIT | 5.3 | 6.8 | - 22.8 |
| EBIT margin (in %) | 3.7 | 4.2 | |
| EBT (earnings before taxes) | 3.9 | 5.4 | - 29.1 |
| EBT margin (in %) | 2.7 | 3.3 | |
| Period surplus | 2.6 | 3.6 | - 28.6 |
| Net earnings per share (in EUR) | 0.39 | 0.56 | - 30.4 |
| Operating cash flow | 1.3 | 0.5 | |
| Employees as at 2016-03-31 (excl. trainees) | 1,820 | 1,973 | - 7.8 |
| | | | |
| | 2016-06-30 | 2015-12-31 | |
| | | | |
| Liquid funds | 12.8 | 18.3 | - 30.3 |
| Equity ratio (in %) | 31.1 | 36.2 | |
The full report on the first six months of 2016 is available for download on the company website www.stahl.de.
Financial calendar 2016
10 November Report on the third quarter
About R. STAHL - www.stahl.de
R. STAHL is the world's leading supplier 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 growth 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).
Contact:
R. STAHL AG
Am Bahnhof 30, 74638 Waldenburg (Württ.)
Bernd Marx (CFO)
Phone: +49 7942 943 1271
Carmen Kulle (Investor Relations)
Phone: +49 7942 943 1395
E-Mail: investornews@stahl.de
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