Financial News
STS Group AG achieves 2020 forecast after very good fourth quarter and enters 2021 in a stronger position
DGAP-News: STS Group AG
/ Key word(s): Preliminary Results
Hallbergmoos/Munich, 15 March 2021. STS Group AG (ISIN: DE000A1TNU68), a global systems supplier for the automotive industry listed on the General Standard of the Frankfurt Stock Exchange, today publishes its preliminary and unaudited figures for the 2020 financial year. Mathieu Purrey, CEO of STS Group AG: "Business development was strongly influenced by the Corona pandemic, especially in the first half of the year. Nevertheless, the development of sales and earnings was within our expectations. We have rolled out important strategic measures throughout the Group in 2020 and are thus on a very good path to emerge stronger from the Corona-related crisis. This is what we want to build on in the 2021 financial year, increase profitability and efficiency and focus our European business, where the roots of the STS Group are. In China, our priority is to leverage the momentum of a strong financial year achieved despite the Corona pandemic and the continued excellence of our sales activities. Furthermore, we will continue to intensify our activities to expand the North American location. The major trends in the automotive industry such as e-mobility, lightweight construction and digitalization are intact. The STS team is working on all these megatrends together with our customers, already delivering the right solutions today. The takeover of the majority stake in STS by the Adler Pelzer Group, announced on 11 March, will also create new opportunities and synergy potential for the entire Group. We are therefore optimistic about the 2021 financial year, in which we want to continue to shape the transformation of the automotive and commercial vehicle industry as a strong partner for our customers." Sales and earnings development The Group sales decline was particularly attributable to the pandemic-related plant shutdowns in Europe and China in the first half of the year. The China segment was able to more than compensate for the plant shutdowns in the reporting year with sales growth of 68.5% to 85.0 mEUR, mainly driven by the start-up of new projects in 2020 and a strong local commercial vehicle market. In Europe, on the other hand, the recovery was slower. As a result, production losses could not be compensated despite a strong fourth quarter. Consequently, the Plastics and Materials segments recorded a sales decline of 23.1% to 129.9 mEUR and 33.0% to 26,7 mEUR, respectively. Before interest, taxes, depreciation and amortization, the preliminary operating result (EBITDA) for the Group amounted to 13.0 mEUR in the reporting period and was below previous year's level (2019: 15.3 mEUR) due to the decline in sales as well as the extraordinary expenses incurred. Extraordinary expenses of 4.7 mEUR (2019: 2.6 mEUR) were incurred in the financial year. EBITDA adjusted for extraordinary items fell slightly from 17.9 mEUR to 17.7 mEUR. The adjusted EBITDA margin was 7.5% (2019: 7.1%). 1.7 mEUR of the extraordinary expenses are attributable to the closure of the Group headquarters and the related dismissals for operational reasons. A further 2.0 mEUR is related to special expenses for the sale of the Acoustics segment. Despite the decline in sales, the STS Group's adjusted EBITDA was maintained almost at the previous year's level. The growth of the high-margin China segment was decisive, as was the restructuring of the Group headquarters and the associated cost savings. While the adjusted EBITDA of the Plastics segment decreased by 10.3 mEUR to 2.3 mEUR due to the decline in sales, the China segment was able to almost compensate for this decline, with an increase in adjusted EBITDA by 8.4 mEUR to 17.4 mEUR. After consideration of the deconsolidation result of the Acoustics segment (3.9 mEUR) included in the result from discontinued operations (-7.6 mEUR), the consolidated result for the 2020 financial year totals -15.9 mEUR (2019: -12.1 mEUR). Final figures 2020
About STS Group:
15.03.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. |
Language: | English |
Company: | STS Group AG |
Zeppelinstraße 4 | |
85399 Hallbergmoos | |
Germany | |
Phone: | +49 (0)811 124494 0 |
E-mail: | ir@sts.group |
Internet: | https://sts.group |
ISIN: | DE000A1TNU68 |
WKN: | A1TNU6 |
Listed: | Regulated Market in Frankfurt (General Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange |
EQS News ID: | 1175406 |
End of News | DGAP News Service |