Schaltbau Holding AG: Schaltbau continues to grow in Q2 2018
08.08.2018 / 07:30
The issuer is solely responsible for the content of this announcement.
Schaltbau Holding AG, Munich, Germany
WKN 717030 – ISIN DE0007170300
Schaltbau continues to grow in Q2 2018
- Order intake up by 22.2% year-on-year to EUR 152.7 million in Q2 2018; order book reaches record level of EUR 533.2 million at end of June 2018
- Group sales grow by 2.5% year-on-year to EUR 127.4 million; EBIT improves by EUR 3.6 million to EUR 7.4 million
- Guidance for current fiscal year reaffirmed
Munich (Germany), 8 August 2018. As in the previous quarter, Schaltbau Holding AG made good progress in its operations in the second quarter 2018 and continued reducing its project risks. At EUR 152.7 million, order intake in the quarter under report easily surpassed the figure of EUR 124.9 million recorded one year earlier and the Group’s order book stood at the record level of EUR 533.2 million at the end of June 2018. Second-quarter sales for the Schaltbau Group rose from EUR 124.3 million in 2017 to EUR 127.4 million in Q2 2018.
Sales for the first half of 2018 reached EUR 251.5 million and were therefore 7.1% above the total of EUR 234.9 million recorded one year earlier. At EUR 301.9 million, order intake for the six-month period also exceeded the previous year’s figure of EUR 295.7 million. Reported EBIT improved by EUR 14.1 million from a negative amount of EUR 4.7 million for the first half of 2017 to a positive EUR 9.4 million. This key performance figure includes material exceptional items. Excluding these, EBIT amounted to EUR 6.6 million for the first six months of 2018. The results of the Schaltbau Sepsa Group do not have an impact on Group EBIT in the first half of 2018 anymore, as this sub-group was classified as a disposal group in November 2017.
Moreover, the Schaltbau Group was able to further reduce its level of project risks. A key driver of this development was an agreement reached with Bombardier Transportation concerning a modified continuation of the platform screen doors (PSD) project in Brazil. In the past, the Schaltbau Group was solely responsible for installing the new PSD systems in the stations of the customer Metro São Paulo. This work will now be performed by a third-party company to be commissioned by Bombardier Transportation. For the time being, Schaltbau will continue to deliver the components and provide the technical support required for installation for a reduced number of stations. At the same time, the terms and conditions for these deliveries will be modified.
Dr Albrecht Köhler, new Spokesman of the Executive Board of Schaltbau Holding AG since 18 May 2018, commented on the Group’s business performance in recent months as follows: “My start in the Executive Board of Schaltbau in mid-May came at a time of continuous change for the Group. Looking at the good progress made in restructuring and the significantly strengthened financial foundation created by the share capital increase completed in February 2018, I am satisfied with our progress. Key milestones reached on our way to further improvement comprise the growth in sales and order intake as well as the lower level of risk and cash flow burden stemming from the PSD project in Brazil. There is still a lot to do on the way back towards sustainable, positive EBIT margins as formerly achieved by Schaltbau, particularly in terms of gross margins, improving production planning processes and decreasing the level of working capital. However, developments within the Group so far this year show that we are on the right track.”
Overall, Schaltbau profited from significant volume increases in the Mobile Transportation Technology and Components segments during the first half of 2018. In fact, EBIT improved in all three of the Schaltbau Group’s segments.
External order intake in the Mobile Transportation Technology segment totalled EUR 170.5 million, up 4.1% from the EUR 163.8 million recorded in the first six months of 2017. External sales for the segment also climbed significantly from EUR 125.2 million to EUR 146.9 million year-on-year. EBIT also improved, from a negative amount of EUR 2.2 million in the first six months of 2017 to a negative EUR 0.7 million in the first half of 2018. Excluding the Sepsa Group, which is due to be sold, external sales rose from EUR 106.1 million to EUR 132.7 million year-on-year. EBIT is impacted negatively by the developments at Schaltbau Alte, where performance was held down by production inefficiencies and supply problems. The production improvement and cost-cutting measures already launched and planned in this segment will start to bear fruit, in part already in the further course of the current year.
In the Stationary Transportation Technology segment, external sales amounted to EUR 30.0 million for the first half of 2018, compared with EUR 47.1 million in the previous year. Excluding the Pintsch Bubenzer Group, which has been sold, external segment sales totalled EUR 21.8 million, 7.0% down on the comparable figure of EUR 23.4 million recorded one year earlier. The somewhat slow start to the year was hampered by customer-related project delays. By contrast, external order intake figures for the Stationary Transportation Technology segment developed strongly, amounting to EUR 43.4 million excluding Pintsch Bubenzer and therefore a highly pleasing EUR 15.3 million up on the EUR 28.1 million reported for the first half of 2017 on the back of a major order for a train formation unit. At a negative amount of EUR 0.1 million, segment EBIT almost reached break-even compared with the negative EUR 5.6 million recorded the previous year. The positive performance is mainly due to the reversal of provisions for pending losses on onerous contracts amounting to EUR 7.1 million for the previously mentioned PSD project in Brazil.
Business performance in the Components segment again improved significantly in the first half of 2018. External sales rose by 19.0% to EUR 74.5 million (January to June 2017: EUR 62.6 million). EBIT improved by EUR 6.5 million from EUR 9.3 million in the first half of 2017 to EUR 15.8 million for the six-month period ended 30 June 2018. At EUR 77.9 million, external order intake for the half-year was comparable with the EUR 78.0 million recorded one year earlier.
Due to the good performance reported for the first half of 2018, the management team has reaffirmed its forecast for the full fiscal year. Schaltbau forecasts Group sales in the region of EUR 480 million to EUR 500 million and Group order intake of EUR 500 million to EUR 520 million, both excluding the contributions of the Sepsa Group, which has been put up for sale. The sales shortfall resulting from the sale of the brake systems business will be partially offset by the expected net growth of the remaining Group companies. Based on a continuation of the stable order situation, the EBIT margin for 2018 (excluding exceptional items) should improve to around 3% of sales. The first beneficial effects of the restructuring process begun in 2017 are set to make a positive contribution. Beyond an agreed supplemental collective plan in the Stationary Transport Technology segment, productivity increases driven by optimised manufacturing processes and improved purchasing conditions are therefore expected to lead to lower personnel and material costs. In 2018, once more non-operating exceptional items will result from impairment losses in connection with restructuring measures and fair value valuation adjustments for subsidiaries.
Key figures from the consolidated financial statements of Schaltbau Holding AG, half-year 2018
|In EUR million, unless otherwise indicated||H1 2018||H1 2017||Δ absolute||Δ in %|
excluding Pintsch Bubenzer and Sepsa*
|Order book (at period-end)||533.2||491.7||+41.5||+8.4|
|Sales excluding Pintsch Bubenzer and Sepsa*||229.1||192.0||+37.0||+19.3|
|EBIT before exceptional items 2018||6.6||-4.7||–||–|
|30.06.2018||31.12.2017||Δ absolute||Δ in %|
|Net financial liabilities||106.5||158.4||-51.9||-32.8|
|Equity ratio (in %)||27.7||15.6||+12.1||+77.6|
|Number of employees||3,125||3,370||-245||-7.3|
* Pintsch Bubenzer was deconsolidated due to sale on 1 March 2018.
Sepsa was put up for sale in November 2017, and its contributions since do not have an impact on Group EBIT anymore.
Further details regarding results from the first half of 2018 are available in the Group Interim Report as at 30 June 2018 and in an explanatory presentation. Both documents were published today and are available at www.schaltbau.de. Nine-month results as at 30 September 2018 will be published in a Group Quarterly Statement on 8 November 2018.
With annual sales of over EUR 500 million and more than 3,000 employees, the Schaltbau Group is an internationally 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, and 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.
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.
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