Tuesday, 09. August 2011 R. STAHL Interim Report 2011

Category: Corporate-News

R. STAHL Interim Report 2011

• Double-digit growth of order intake and sales

• Result on last year's level due to one-off effects

• Unaltered forecast for the full year

Waldenburg, 9 August 2011 - R. STAHL order intake and sales grew at double-digit rates in a continuously positive economic environment:

• During the first half of 2011, order intake at € 126.6 million exceeded last year's value by 18%. We achieved increase of orders in all regions, the increases were especially strong in Germany, +23%, and in Asia/Pacific, +79%.

• Especially thanks to the strong growth in Germany (+21%) and Europe (+20%), group sales increased by 12% to € 115.8 million (previous year: € 103.8 million).

Focus still on increase of return
During the first six months, three factors temporarily burdened the development of R. STAHL's results:

• With the order boom in system business we had to notice that we planned the optimisation processes in the production departments to improve profitability and delivery speed too ambitiously for this growth, which then led to a loss of productivity. We swiftly noticed and handled the problem, so we assume that we can largely make up for the shortfall in autumn.

• Our business is still characterized by an ambitious price level - here we also introduced measures which are meant to improve the margins in the course of this fiscal year.

• We still have substantial integration efforts for all companies we acquired in 2010 and 2011.

 

Due to these growth-orientated business activities, earnings before taxes (EBT) now achieved € 6.7 million (previous year: € 6.6 million) and the operating EBT-margin related to sales revenues achieved 5.8% (previous year: 6.4%). At € 0.78, earnings per share are on last year's level.

Positive operating cash flow
In the period under review we achieved cash flow amounting to € 9.0 million (previous year: € 8.2 million). Financial means have been committed to stockpiling in order to avoid impending delivery problems, that is why the cash flow from operating activities decreased significantly to € 1.3 million, compared to the same period in the previous year (€ 11.9 million). Because of investments that have been made as planned, free cash flow amounted to € -3.8 million (previous year: € +5.7 million). Practicing a continuous dividend policy, R. STAHL paid dividends amounting to € 4.1 million to the shareholders in the second quarter - which means about 40% of the group result.

Solidly financed
R. STAHL is still solidly financed: While equity almost completely covers the long-term assets, the liquid funds (€ 14.4 million) exceed the short-term and long-term interest-bearing financial liabilities by € 1.2 million.

Growth with acquisitions and innovations
R. STAHL continued its expanding growth in the first half as well: In April we announced that we will take over the explosion-protected products of Dutch Orlaco Products B.V. in the form of an Asset Deal. Furthermore, we founded a subsidiary in Australia. Integration of the companies we acquired in 2010 and 2011 proceeds as scheduled. They will give growth impulses to the company in future, as will the new products that we will put on the market as a result of our targeted innovation process.

With confidence into the second half.
R. STAHL acquired a very good market position and is very well positioned in regard to finance and strategy. The important customer industries show a vivid willingness to invest and the economic upturn continues, while the companies we acquired and new products will add positive impulses for the group.

From today's point of view it is not clear, how the recent uncertainties on the financial markets will influence the further development of our company. Nevertheless, the Executive Board feels confident about the future; the aspired growth is to be continued: After the temporary dent in profits in the second quarter of 2011 we on the one hand expect positive profit contributions from the continuing integration processes of our acquisitions in the near future. On the other hand we took prompt measures for a sustainable removal of our structural problems in regard to the handling of the order boom in system business, which will also lead to significantly positive sales and earnings effects already during the next few months and from which we also expect long-term additional improvement in efficiency as well. R. STAHL's Executive Board sticks to their forecast for sales and earnings for the full year 2011.

Key figures of R. STAHL group (in € m)
	1-6/2011	1-6/2010	Changes. in %
Order intake	126.6	106.9	+18
Sales	115.8	103.8	+12
EBIT	8.4	8.5	-1.2
Earnings before taxes (EBT)	6.7	6.6	+1.5
EBT-margin (in % of revenue)	5.8	6.4	n.i.
Earnings per share (in €)	0.78	0.77	+1.3
Equity ratio (in %)	43.2	43.9*	n.i.
Employees (record date, without trainees)	1,529	1,405	+8.8

n.i. = no information       * on 31 December 2010


You will find the detailed interim report on the internet at www.stahl.de/investor-relations/financial-reports.html

Information on R. STAHL - www.stahl.de
R. STAHL is one of the world's leading suppliers of electrical and electronic products and systems for explosion protection. These products and systems prevent explosions in hazardous areas and thus contribute to the safety of man, machine and environment. The spectrum ranges from tasks like switching/distributing, installing, operating/monitoring, lighting and signalling/alarming up to automating. Typical customers are the growth industries like the oil & gas industry, the chemical and pharmaceutical industry and the food industry. The share in the market for marine equipment continuously increases. In 2010 about 1,500 employees generated sales of € 223 million world-wide.
R. STAHL AG is listed on the stock exchange.

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

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