Friday, 23. April 2010 Market leadership in system business expanded in the year of crisis - Market share in the Americas increased - Earnings generated despite significant decline in sales
Market leadership in system business expanded in the year of crisis - Market share in the Americas increased - Earnings generated despite significant decline in sales - Dividend of 40 Cent proposed - Positive start in the first quarter - Well prepared for expected upturn
Waldenburg, 23 April 2010 - R. STAHL group got well through fiscal year 2009, which has been heavily strained due to the economic crisis. The specialist for electrical explosion protection could utilize the crisis and further expand market leadership for explosion-protected, electrical system solutions in process industry, said CEO Martin Schomaker on today's press conference on financial statements. It can be seen that we have been right to keep the core workforce in the economic crisis, says Schomaker. The employees are motivated and the company is well prepared to realize the growth expected for the second half of 2010.
Moderate decline in order intake and sales
In fiscal year 2009 the group's order intake of € 208.1 million has only been 6.9% less than last year's figure. System business and major projects have been essential for keeping order intake on a good level. Investments that have been made in 2007 and 2008 in the development of the system business thus fully paid off in the year of crisis 2009. By keeping the core workforce during the crisis R. STAHL had the capacities required to realize several major orders and to avoid further decline.
The long-term growth strategy yielded results in the economically difficult year 2009: with investments in sales activities R. STAHL could generate growth in the Americas despite the crisis. Order intake from the Americas amounted to € 24.2 million and has been 26% higher than in the previous year. In Asia/Pacific the company could win orders amounting to € 34.0 million and thus achieve an increase of 3.8%. In the traditional markets Germany (€ 50.5 million) and Central Region (€ 99.4 million) the order intake declined due to the economic crisis.
Included in the order intake are major projects which will be turned into sales in 2010. That is why order backlog at the end of 2009 amounted to € 42.6 million and is thus € 3.6 million (+ 9.2%) higher than on 31 December 2008. At € 202.6 million consolidated sales is slightly lower than order intake.
Efficiency measures support result - constant payout ratio
The company could assert itself well in 2009, despite decline in sales and high personnel costs. With a strict cost management and savings in material prices R. STAHL could generate net earnings of € 5.6 million last year. EBITDA amounts to € 21.7 million, EBITDA-margin, showing the operating result - just fell from 13.8% to 10.7%. Earnings before taxes (EBT) amounted to € 8.9 million, which corresponds to an EBT-margin of 4.4%
The group's sound financial situation and the first positive signs from the market allow for a constant payout ratio of 42% even in the crisis. So Executive Board and Supervisory board will propose a dividend of € 0.40 per share to the Annual General Meeting.
Earnings per share amount to € 0.90 compared to € 2.03 in 2008.
Sound capital situation
R. STAHL has a positive cash flow from operating business activities amounting to € 10.9 million (previous year: € 27.5 million), despite the general economic crisis. The decrease can primarily be attributed to the changes in the provisions for holiday and overtime and to the reduction of liabilities.
Equity ratio is 41.5%; it slightly declined in the period under review as R. STAHL set off goodwill from the takeover of shares in the Norwegian subsidiary against the equity. The group has a sound financial basis and is well equipped for the future.
Positive first quarter 2010
In the first quarter the first signs of recovery after the economic crisis can be noticed. The group achieved quarterly sales of € 51.8 million and thus reached last year's level. Earnings before income taxes increased disproportionally. Compared to € 2.5 million in 2009 the Waldenburg-based company generated EBT of € 3.0 million in the first quarter of 2010. Return on sales based on pre-tax profits rose to 5.9% in the period under review
Positive development is also supported by a major project which could be delivered in the first quarter. Furthermore, positive contributions arise from the takeover of Canadian company Omega, which R. STAHL has taken over in the fourth quarter, inclusive of patents and production.
Order intake during the quarter has been on last year's level as well and reached
€ 53.3 million. It includes several follow-up orders for existing installations, one order for distribution and control panels for a plant in the Middle East and material for a major German airport.
Detailed figures for the first quarter of 2010 will be published on 19 May 2010.
Outlook for 2010
The Executive Boards expects a lasting recovery of demand not before the second half of 2010. This would correspond with our experiences that the company follows the general demand situation with a time delay of eight to ten months. From the major customer industries the first signs of recovery can be noticed. With a rise in demand, but also with sales growth by our own efforts, the management assumes that the company will exceed the sales volume of 2009 in the full year 2010.
Due to existing overcapacities in the markets and a still small number of projects, a strong competition for orders will persist. That is why R.STAHL expects a still tense price situation in 2010. All expenses are continuously put to a strict test. Supported by efficiency programs the management plans realization of sales growth without increasing the number of white collar employees in 2010. Consequently, personnel costs will decrease and profitability will increase disproportionately in the second half of 2010. All in all the Executive Board expects improved earnings for 2010 compared to the previous year.
R. STAHL acquired a good position in the crisis. The group is excellently positioned in regard to finance and strategy. Inquiries from the major markets increase. The Executive Board is confident that the emerging economic upturn can be utilized for the company with a dynamic workforce.
Figures for fiscal year 2009:
| 2009 | 2008 | Changes in % |
Total sales | 202.6 | 221.2 | - 8.4 |
Germany | 52.7 | 58.0 | - 9.1 |
Europe, excl. Germany | 94.9 | 111.3 | - 15 |
Asia/Pacific | 32.4 | 33.8 | - 4.1 |
Americas | 22.6 | 18.1 | + 25 |
Order intake | 208.1 | 223.6 | - 6.9 |
Order backlog | 42.6 | 39.0 | + 9.2 |
EBITDA | 21.7 | 30.5 | - 29 |
EBT (earnings before taxes) | 8.9 | 18.5 | - 52 |
Results for the year | 5.6 | 12.6 | - 56 |
Earnings per share (in €) | 0.90 | 2.03 | - 56 |
Cash flow from operating business activities | 10.9 | 27.5 | - 60 |
Liquidity | 22.5 | 34.1 | - 34 |
Equity ratio (in %) | 41.5* | 43.7 | n.s. |
Dividend/share (in €) | 0.40** | 0.90 | - 56 |
Employees on 31/12 (excl. apprentices) | 1,404 | 1,369 | + 2.6 |
* Decline in equity due to allocation of goodwill from acquisition of shares in Norway (please
also see Q3/09-report)
** Proposal to the AGM
Detailed figures and explanations concerning fiscal year 2009 can be viewed in our annual report.
The following documents for the press conference on financial statements can be found on our website:
Annual report: www.stahl.de/investor-relations/finanzberichte.html
Presentation: www.stahl.de/investor-relations/investoren-praesentationen.html
Photos: www.stahl.de/downloads/pressefotos/bilanz-pressekonferenz-2009.html
If you have any questions please contact:
R. STAHL AG
Communications / Investor Relations
Judith Schäuble
Am Bahnhof 30, 74638 Waldenburg (Württ.)
Phone: 07942.943-1217, Fax: 07942.943-40 1217
e-mail: judith.schaeuble@stahl.de