Monday, 18. May 2009 R. STAHL publishes report on first quarter of 2009 - Weak demand leaves its mark
Sales, order intake and earnings down on previous year - Managing Board expects falling business volume also for 2009 as a whole
Waldenburg, 18 May 2009 - The preliminary key figures of the R. STAHL group have been confirmed with the publication of its interim report for the first three months. The financial and economic crisis led to a decline in all key figures of the explosion protection specialists in the first quarter of 2009.
Sales and order intake down on previous year
At € 51.7 million, R. STAHL was still able to generate a respectable level of sales in the first three months of 2009; the year-on-year decline amounted to 4.3%. The effects of the crisis were far more noticeable from the company's order intake, which fell by 9.2% from € 59.3 million to € 53.8 million. The decline in orders was due to weak demand as a result of the general economic crisis. There were virtually no projects at all from the major plant construction sector during the period under review. Order volume fell to € 40.8 million as of 31 March 2009, compared with € 44.4 million on the same day last year.
Whereas sales in Europe (excluding Germany) and Asia/Pacific were down on the previous year, the company recorded growth in Germany and the Americas. R. STAHL benefited from its greater distribution strength in the Americas following the implementation of its corporate growth strategy.
There were also differences in the development of the company's various client sectors. Demand from the oil and gas industry and the pharmaceutical sector was generally quite firm at a healthy level in the first quarter. In the plant construction sector, however, there has been an almost total lack of new projects since the beginning of year. Business in the specialist ship sector was encouraging.
Operating profits down as expected
Earnings of the R. STAHL group were also unable to escape the general negative trend in the first quarter of 2009. Operating earnings before taxes (EBT) fell from € 6.6 million last year to € 2.5 million in the first three months of 2009. As a proportion of sales, the operating EBT margin reached 4.8% (previous year: 12.2%). In addition to weak demand, this was also a result of significant price erosion brought about by a growing level of excess capacity in the sector.
Earnings per share amount to € 0.27 for the period under review (previous year: € 0.76).
Asset and financial structure still sound
The company is well prepared to face an increasingly difficult future. Liquid funds of € 28.1 million exceeded short- and long-term interest-bearing financial debt by € 13.6 million as of 31 March 2009. Together with an equity ratio of 44.6%, the R. STAHL group boasts a solid balance sheet structure which enables it to focus on key operating tasks, such as expanding its markets, developing product innovations, optimising processes and achieving more flexible cost structures.
Outlook
For 2009 as a whole, the Managing Board expects lower sales and order intake than in 2008. As a supplier to the plant construction sector, R. STAHL does not generally feel the full effect of a downturn until later in the economic cycle. As a consequence, it is expected that sales of equipment for new plants will decrease further in the second half of 2009. Earnings are also likely to fall.
An important aim of the company during the crisis is to maintain its core work force so that it can continue its long-term growth strategy.
Thanks to the measures already introduced to optimise costs and processes, as well as the group's strong capital base, the Managing Board is confident that the company can use the economic crisis to achieve a sustained improvement in its market position.
The complete quarterly report is also published at:
www.stahl.de/investor-relations/finanzberichte.html
Contact:
R. STAHL AG
Communication / Investor Relations
Judith Schäuble
Am Bahnhof 30
74638 Waldenburg, Germany
Tel: +49 7942.943-1217, Fax: +49 7942.943-40 1217
judith.schaeuble@stahl.de