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DGAP-News: STS Group AG / Key word(s): Half Year Results
STS Group AG publishes figures for the first half-year 2019 / Decline in revenues and earnings in H1 2019 compared with previous year, however, Q2 2019 above the previous quarter
- Revenues at 193.8 mEUR in H1/2019. Downturn of 11.2% compared to prior year (H1/2018: 218.2 mEUR) in particular due to the generally challenging market environment
- Revenues at 98.3 mEUR in Q2/2019, 2.9% higher than in Q1 2019 (95.5 mEUR)
- EBITDA of 10.1 mEUR in H1/2019, grows by +46.4% compared to prior year (H1/2018: 6.9 mEUR)
- EBITDA increases by +34.9% to 5.8 mEUR in Q2/2019 compared to Q1/2019 (4.3 mEUR)
- Adjusted EBITDA of 10.1 mEUR decreases by 38.8% in H1/2019 compared to prior year (H1/2018: 16.5 mEUR) due to lower revenue base. No special effects were adjusted in the first half-year 2019
- Positive order development in the first half-year 2019
- Forecast adjusted on August 2, 2019: decline in revenues of between 4.5 and 9.5 % compared to previous year, adjusted EBITDA margin between 4.6 and 5.3%
Andreas Becker, CEO of STS Group AG: "The European and Chinese vehicle markets remain challenging and show lower call-off figures in the reporting period compared to the prior year, impacting our revenue and earnings development in the first half of the year. Nevertheless, in this environment we were able to increase our revenue and EBITDA in the second quarter of 2019 compared with the previous quarter. We also gained major orders in China for e-mobility and long-nose trucks. Against this backdrop, we are optimistic about the future".
Revenue and earnings development
In the Acoustics segment, weaker customer call-offs in the relevant passenger car market in Italy and Brazil led to a revenue decline of 12.3% to 60.1 mEUR in the first half of 2019 (H1/2018: 68.6 mEUR). At 31.1 mEUR, revenues in Q2/2019 were up on the first quarter (Q1/2019: 29.0 mEUR). EBITDA rose to 0.7 mEUR in the first half of 2019 (H1/2018: 0.1 mEUR). The plant in Poland still recorded a negative EBITDA, even though the implemented measures are showing initial improvements in earnings.
The revenue decline by 12.2% to 94.1 mEUR in the Plastics segment resulted mainly from the planned expiry of a major order (approx. -4.0 mEUR) in the second half year 2018, which was already announced, as well as from lower customer call-offs. Compared to the previous quarter (Q1/2019: 46.5 mEUR), revenues in the second quarter of 2019 increased to 47.6 mEUR. EBITDA rose to 7.6 mEUR in the first half-year 2019 (H1/2018: 6.9 mEUR), especially due to the efficiency gains achieved and the absence of negative special effects incurred in the previous year .
In an overall significantly declining Chinese automotive market, the China segment recorded revenues of 23.0 mEUR in the first half of 2019, down 11.5% from 26.0 mEUR in H1/2018. At 11.6 mEUR, revenue volume in the second quarter was slightly higher than in the first quarter of 2019 (Q1/2019: 11.3 mEUR). EBITDA of the segment amounted to 3.0 mEUR in the first half of 2019 (H1/2018: 3.8 mEUR), which is attributable to the lower revenue volume and weaker capacity utilization.
Revenues of 21.3 mEUR in the Materials segment in the first half of 2019 were slightly below the figure of the previous year of 21.9 mEUR. EBITDA decreased in the same period from 1.2 mEUR to 0.9 mEUR.
Order situation in the first half of 2019
The full report on the first half-year 2019 of STS Group AG is available for download at https://ir.sts.group/websites/stsgroup/German/3100/finanzberichte.html.
STS Group AG
|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:||852891|
|End of News||DGAP News Service|