Schaltbau Group starts fiscal year 2017 in line with expectations
- Year-on-year quarterly comparison meets expectations: Group sales down by 6.3 per cent, EBIT negative
- Sales and earnings forecast for full year 2017 confirmed
The Schaltbau Group, a leading provider of advanced transportation technology worldwide, finished the first quarter 2017 in line with forecast with a negative EBIT of EUR 8.5 million (January to March 2016: positive EBIT of EUR 2.7 million). This sales performance reflects divergent developments: On the one hand, Group sales grew by EUR 7.4 million due to the first-time consolidation of the Schaltbau Sepsa Group. On the other hand, organic sales reported by the other Group entities dropped by EUR 14.8 million. Primary influencing factors were the expected decline in component sales in China and at the Schaltbau Group subsidiary in Italy as well as lower sales of Brake Systems at Pintsch Bubenzer. Although first-quarter EBIT was in line with expectations, it came in at a clearly negative amount of EUR 8.5 million. Alongside lower profit contributions attributable to the decrease in sales, the first-time consolidaton of the Schaltbau Sepsa Group (with effect from 1 October 2016) caused EBIT to drop by EUR 3.5 million compared to the previous year's first quarter, but with an opposite effect below the level of EBIT due to the discontinued use of the equity method.
Order intake rose by 9.5 per cent to EUR 170.8 million in the first quarter. The Mobile Transportation Technology segment reported organic growth, particularly for railway door systems and sliding doors (Automotive). The organic decline in the other segments is primarily due to lower order volumes in the fields of Brake Systems and Signal Technology, the expected sluggish demand for components in China and project-related reductions at the Italy-based Group subsidiary SPII. Overall, the Schaltbau Group's order book grew by EUR 61.3 million to EUR 491.1 million (31 December 2016: EUR 429.8 million). The high order book figure forms a good basis for fulfilling the unchanged guidance of EUR 520 million to EUR 540 million in sales and an EBIT margin of 3 to 4 per cent.
"After the expected slow-moving first quarter, over the next few months we will continue to evolve and resolutely implement our strategic agenda," commented Dr Bertram Stausberg, Spokesperson of the Executive Board of the Schaltbau Group. "It is imperative to create a sound platform for margin-oriented growth by adopting efficient structures."
The successful renegotiation of bank loans during the first quarter has formed the necessary basis for the aforesaid. However, the related one-off effects (interest and similar expenses) and higher interest rates had a negative impact on the financial result in the quarter under report and thereafter.
Accordingly, the net loss for the period amounted to EUR 12.3 million (first quarter 2016: net loss of EUR 2.6 million), giving rise to negative earnings per share of EUR 2.00 (first quarter 2016: negative EUR 0.62).
This corporate news contains statements regarding future developments based on information currently available to us. As a result of risks and uncertainties, actual outcomes could differ from the forward-looking statements made. Schaltbau Holding AG does not intend to update these forward-looking statements.
With annual sales of over EUR 500 million and 3,370 employees, the Schaltbau Group is a leading supplier of components and systems in the field of transportation technology and the capital goods industry. The companies of the Schaltbau Group supply complete level crossing systems, train formation and signal technology, door and boarding systems for buses, trains and commercial vehicles, sanitary systems and interior fittings for railway vehicles, industrial brakes for container cranes and wind turbines and also high- and low-voltage components for rolling stock as well as for other fields of application. Its innovative and future-oriented products make Schaltbau a key industrial business partner, particularly in the field of transportation technology.