Schaltbau Holding AG: Schaltbau makes further operating progress in Q2 2019, restructuring successfully completed
31.07.2019 / 07:30
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- Like-for-like, Group revenue in Q2 2019 grows year-on-year to EUR 113.2 million with a high book-to-bill ratio of 1.09. At EUR 7.6 million or 6.3% of revenue, the corresponding EBIT excluding exceptional items is significantly up on previous year’s figure
- Outlook for current fiscal year confirmed
- Successful completion of restructuring confirmed by accompanying management consultancy on 29 July 2019
Munich (Germany), 31 July 2019. Schaltbau Holding AG made further operating progress in Q2 2019 and reached the last remaining key milestones in its restructuring plan, which has been ongoing since early 2017. On this basis, the accompanying management consultancy supporting the restructuring process confirmed the successful completion of the restructuring project on 29 July.
In Q2 2019, the Schaltbau Group’s revenue grew year-on-year to EUR 113.2 million like-for-like (excluding the divested entities Pintsch Bubenzer, Sepsa and Alte), achieving a book-to-bill ratio of 1.09. The corresponding operating profit (EBIT) before exceptional items amounted to EUR 7.6 million or 6.3% of revenue. Exceptional items recorded in Q2 2019 related to expenses for pending calls on guarantees in conjunction with the Sepsa divestment (EUR 6.7 million), additional restructuring expenses (EUR 0.9 million) on the one hand and exceptional income (EUR 1.2 million) on the other. Reported EBIT for Q2 2019 amounted to EUR 0.1 million.
Six-month Group revenue totalled EUR 233.2 million like-for-like, 7.5% up on the previous year’s figure of EUR 217.0 million. Like-for-like, the book-to-bill ratio stood at an excellent level of 1.19. The corresponding EBIT before exceptional items for the period amounted to EUR 16.5 million or 6.9% of revenue. Reported EBIT totalled EUR 8.5 million.
Dr Albrecht Köhler, Spokesman of the Executive Board of Schaltbau Holding AG, commented on the Group’s business performance as follows: “We are highly satisfied with how the second quarter 2019 went. With the divestment of Sepsa and Alte and the renegotiation of our financing arrangements, the Schaltbau Group reached the final milestones that marked the successful completion of a restructuring plan that has been ongoing since 2017. The management consultancy that supported us during this process confirmed completion on 29 July. The Group’s operating performance in Q2 2019 fully lived up to our expectations. Operating profit went up significantly, in particular due to process improvements. We see ourselves as very well equipped to continue growing profitably, in line with the targets set for 2019.”
Performance of the segments
In the first half of 2019, the Schaltbau Group profited particularly from revenue growth in both the Mobile Transportation Technology and the Components segments as well as from a positive EBIT contribution from all three segments.
Six-month order intake for the Mobile Transportation Technology segment totalled EUR 170.2 million, very similar to the previous year. At EUR 146.2 million, segment revenue was also comparable to one year earlier. The segment reports negative EBIT of EUR 0.4 million for the first half of 2019, compared with the previous year’s negative EUR 0.7 million. Excluding the provision recognised for pending calls on guarantees (EUR 6.7 million) in conjunction with the Sepsa divestment, segment order intake, revenue and EBIT would have been accordingly higher.
Order intake for the Stationary Transportation Technology segment was down year-on-year, mainly attributable to the sale of Pintsch Bubenzer, a one-off major order for a train formation system received in the first half of 2018, and delays in the awarding of level crossing projects in Germany. Excluding Pintsch Bubenzer, order intake for the first six months of 2019 amounted to EUR 30.8 million, compared with EUR 43.4 million one year earlier. By contrast, also excluding Pintsch Bubenzer, revenue for the six-month period totalled EUR 29.5 million, significantly up on the previous year’s figure of EUR 21.8 million, driven by the sale of platform screen doors to Brazil, the positive impact of customer-related project delays from the previous year and additional amounts billed for change orders. Segment EBIT improved to EUR 2.4 million, compared with a negative amount of EUR 0.1 million one year earlier. This positive development was primarily attributable to revenue growth and an improved product mix.
In the Components segment, order intake for the first half of 2019 amounted to EUR 88.5 million, 13.6% up on the previous year’s figure of EUR 77.9 million. Revenue also developed well, growing by 6.4% to EUR 79.3 million on the back of strong performance across the entire product range. EBIT amounted to EUR 14.3 million, compared with EUR 15.8 million one year earlier. The decline in what is still an excellent level of profitability in this segment can be explained by expenditure on structural measures aimed at ensuring future growth.
Positive outlook confirmed
Based on the Group’s performance in the first half of 2019, which was in line with plan, management confirms its outlook for the current fiscal year. The Schaltbau Group continues to predict a year-on-year improvement in business performance, as well as further cost savings, largely based on measures that have already been introduced and on continual improvements. Excluding Sepsa and Alte, which have both been divested, for the full fiscal year the Schaltbau Group expects to generate revenue in the region of EUR 480 to 500 million and an EBIT margin of 5 to 6% before exceptional items.
Key figures from the consolidated financial statements of Schaltbau Holding AG, half-year 2019
|In EUR million, unless otherwise indicated||H1 2019||H1 2018||Δ absolute||Δ in %|
|Order intake like-for-like*||276.4||277.3||-0.9||-0.3|
|Order book like-for-like (at end of period)*||492.2||445.5||+46.7||+10.5|
and excluding exceptional items
|30.06.2019||31.12.2018||Δ absolute||Δ in %|
|Net financial liabilities**||117.3||100.1||+17.2||+17.2|
|Number of employees||2,752||3,157||-405||-12.8|
* Excluding the contributions of Pintsch Bubenzer, Sepsa and Alte; Pintsch Bubenzer was deconsolidated due to its sale on 1 March 2018; Sepsa and Alte were divested in Q2 2019
** Excluding lease liabilities
Further details regarding results from the first half of 2019 are provided in the Group Interim Report as at 30 June 2019 and in an explanatory presentation. Both documents were published today and are available at: www.schaltbaugroup.com. Results for the nine-month period to 30 September 2019 will be published in a Group quarterly statement on 31 October 2019.
With annual revenue in the region of EUR 500 million and around 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. With Bode and Pintsch as their core brands, Schaltbau Group companies develop a wide range of high-quality technologies and customer-specific solutions for rolling stock, rail infrastructure, road vehicles and a range of other industrial applications. The Group’s portfolio includes high- and low-voltage components, door and boarding systems, interior fittings for rolling stock, complete level crossing systems, and shunting and signal technology. Its innovative products make Schaltbau a key industrial supplier, particularly in the field of transportation technology and for industrial applications that require DC switching technology in future-oriented markets such as new energy, e-mobility, the DC industry and smart building.
This corporate news contains statements regarding future developments based on information currently available. 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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