Monday, 11. August 2008 R. STAHL publishes report on the first half of 2008 - Growth remains gratifying
Sales increase 14.9% to EUR 111.7 million - pre-tax operating earnings increase 30% - order intake stays strong
Waldenburg, 11 August 2008 - R. STAHL's official half-year report confirms the preliminary consolidated figures. The explosion protection specialist's sales and earnings increased considerably in the first half of fiscal 2008 thanks to the consistent implementation of the group's growth strategy. Moreover, R. STAHL benefited from lively business in its core customer sectors like the oil and natural gas, chemical, and pharmaceutical industries.
Sales rose markedly year-on-year - strong growth in the Americas and Asia
Sales reached EUR 111.7 million in the first half of fiscal 2008 representing 14.9% year-on-year growth. Business expansion in the Americas and Asia features prominently in R. STAHL's growth strategy and the company succeeded beyond expectations on this score in the period under review with 22.4% year-on-year sales growth to EUR 8.5 million in the Americas and 90.3% to EUR 22.9 million in Asia. The growth measures have led to a certain distortion in the comparative base especially in Asia where order intake surged significantly in the first half of 2007 with sales catching up in the second half of that year. German sales of EUR 28.4 million in 1H 2008 did not quite match the previous year's high level (EUR 29.1 million) because R. STAHL billed some domestic large-scale projects in the first half of 2007 that also distorted the comparative base. The group's European sales (not including Germany) increased 5.7% to EUR 51.9 million.
Order intake in the period under review came to EUR 116.7 million (+ 5% year-on-year). The fact that order intake grew so much less than sales was mainly due to the extraordinarily high order intake volume in the first half of 2007 with many major projects. This high order level then translated into corresponding sales volume in the second half of 2007. R. STAHL's order backlog as of 30 June 2008 reached a comfortable level of EUR 44.2 million or EUR 5.7 million more than at the end of 2007.
Operating profitability improved - high cash flow
In the period from 1 January to 30 June 2008, R. STAHL realised pre-tax earnings (EBT) of EUR 13.0 million after EUR 11.5 million including EUR 1.5 million in non-recurrent income from the IT divestment. Adjusted for this effect, EBT increased 30% year-on-year. The pre-tax operating return on sales improved from 10.3% to 11.6%. Continuous improvement of internal processes and a growing share of follow-up orders on the installed base both contributed to this gratifying margin.
Operating cash flow leapt from EUR 3.9 million in 1H 2007 to EUR 13.3 million in 1H 2008 while free cash flow surged from EUR 2.5 million to EUR 8.5 million. As of 30 June 2008, R. STAHL's consolidated liquid funds came to EUR 27.4 million (previous year: EUR 29.7 million).
Management confirms its cheerful guidance
R. STAHL's management is expecting demand to remain strong on an international scale for the remainder of this year. Last year's capital spending boom in the wake of steadily rising oil prices has eased somewhat by now. Current demand has returned to a more normal level with respectable growth.
Thanks to this gratifying business development and favourable demand situation, management confirms its guidance for fiscal 2008 as a whole. The 2008 guidance remains at consolidated sales of EUR 220-230 million up from EUR 211.6 million in 2007. Pre-tax earnings are to reach at least 10% of sales revenue and earnings per share are to rise further.
The complete half-year report is also available at
www.stahl.de/investor-relations/finanzberichte.html.
Contact:
R. STAHL AG
Communication / Investor Relations
Judith Schäuble
Am Bahnhof 30
D-74638 Waldenburg, Germany
Phone: +49 (7942) 943-1217
e-mail: judith.schaeuble@stahl.de