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DGAP-News: STS Group AG / Key word(s): Quarterly / Interim Statement
STS Group AG publishes final figures for the first quarter of 2019 / Market-related revenue decline / EBITDA improved / Forecast for 2019 confirmed
- Revenue decline by 12.3% to 95.5 mEUR (3M/2018: 108.9 mEUR) due to generally weaker market environment in Europe and China
- Adjusted EBITDA below previous year; EBITDA increased to 4.3 mEUR (3M/2018: 3.5 mEUR)
- The Management Board expects a positive market development in the second half of the year and confirms its forecast for the 2019 financial year
Andreas Becker, CEO of STS Group AG: "In particular, the weak European passenger car market and the decreasing Chinese automotive market led to revenue declines in the first quarter. Nevertheless, we were able to improve our EBITDA. Revenue and earnings developments in the first quarter were in line with our expectations. We expect the market to recover in the second half of the year and anticipate several production ramp-ups in China. Against this backdrop, we maintain our forecast for fiscal year 2019."
Revenue and earnings development
In the Acoustics division, weaker customer call-offs in the relevant passenger car market in Italy and Brazil led to a decline in sales of 15.4% to 29.1 mEUR. EBITDA fell to 0.0 mEUR (3M/2018: 0.2 mEUR). Although the earnings situation at the plant in Poland improved in the first quarter of 2019, it is still negative. Measures to further increase cost efficiency are being implemented. The start-up of a major order in mid-2020 will also significantly increase the plant's capacity utilization.
The decline in the Plastics division by 13.0% to 46.5 mEUR resulted mainly from the planned expiry of a major order (approx. -3.0 mEUR) and lower customer call-offs. However, EBITDA rose to 3.0 mEUR (3M/2018: 1.8 mEUR) due to the efficiency gains achieved and the absence of negative special effects in the prior-year quarter.
Following the market share gains achieved in China last year, the China division recorded a 9.6% decline in sales to 11.3 mEUR in the first quarter of 2019 (3M/2018: 12.5 mEUR) in an overall declining market. Logistics bottlenecks at a major customer also contributed to this. EBITDA amounted to 1.1 mEUR (3M/2018: 2.1 mEUR), which is attributable to the lower volume in revenue and the start-up costs for the new plant in Shiyan.
At 11.0 mEUR, revenues in the Materials division in the first quarter of 2019 were slightly down on the prior-year figure of 11.3 mEUR. EBITDA for the current reporting period fell from 0.8 mEUR to 0.4 mEUR.
The interim report on the first quarter of 2019 of STS Group AG is available for download at https://ir.sts.group/websites/stsgroup/English/3100/financial-reports.html. The three-month figures are unaudited.
Telephone conference on May 15, 2019
|Company:||STS Group AG|
|Phone:||+49 (0)811 124494 0|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange|
|EQS News ID:||811245|
|End of News||DGAP News Service|