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Schaltbau Holding AG: Schaltbau reports almost break-even operating EBIT and clearly positive operating cash flow in third quarter

DGAP-News: Schaltbau Holding AG / Key word(s): 9-month figures

21.11.2017 / 08:50
The issuer is solely responsible for the content of this announcement.

issued by Schaltbau Holding AG, Munich, Germany
WKN 717030 – ISIN DE0007170300
Schaltbau reports almost break-even operating EBIT and clearly positive operating cash flow in third quarter

  • Nine-month period: operating EBIT still held down by negative first-quarter result; operating cash flow close to break-even point
  • Improved order situation provides good basis for profitable operating performance in final quarter and beyond
  • Operating forecast for full fiscal year 2017 confirmed
  • Revaluation of Schaltbau Sepsa leads to non-cash one-off effect

Munich (Germany), 21 November 2017 – The Schaltbau Group, an internationally leading supplier of trendsetting transportation technology, recorded sales of EUR 128.2 million in the third quarter 2017, an improvement of 8.3 per cent year-on-year. Group sales for the nine-month period totalled EUR 363.0 million (January – September 2016: EUR 362.2 million). The figures for the current reporting year still include the sales contribution of the wholly owned Schaltbau Group subsidiary Albatros S.L.U. (Schaltbau Sepsa), which generates annual sales of EUR 35-40 million. However, this company was put up for sale on 15 November.
At negative EUR 0.7 million, operating EBIT – not including a non-operating one-off loss of EUR 12.0 million resulting from the revaluation of Schaltbau Sepsa – was almost recouped in the third quarter (July – September 2016: EUR 2.5 million). Nine-month EBIT deteriorated to a loss of EUR 17.4 million (30 September 2016: profit of EUR 12.1 million) on the back of the weak first-quarter performance and partially due to the one-time effect of the revaluation of Schaltbau Sepsa. The Group recorded a net loss of EUR 33.1 million for the nine-month period (January – September 2016: net profit of EUR 8.8 million), corresponding to negative earnings per share of EUR 5.37 (January – September 2016: positive earnings per share of EUR 0.87).
The positive sales performance of the Schaltbau Group during the current fiscal year has been driven primarily by the Mobile Transportation Technology segment, which recorded a 24.5 per cent increase in nine-month sales to EUR 190.6 million. The figure includes sales contributions from Schaltbau Sepsa companies, which had not been fully consolidated in the previous fiscal year. The negative EBIT margin of 2.2 per cent reported by the Mobile Transportation Technology segment – not including the one-time effect of the revaluation of Schaltbau Sepsa – mainly reflects the negative operating contribution made by foreign subsidiaries.
Sales for the Stationary Transportation Technology segment fell again in the third quarter 2017, due to business developments in both the Rail Infrastructure and Brake Systems business fields. Nine-month segment sales fell by 23.4 per cent to EUR 77.5 million, resulting in a negative EBIT margin of 10.3 per cent.
At EUR 95.8 million, sales in the Components segment were 12.1 per cent lower than in the first nine months of the previous year, reflecting various factors, including project delays in Italy and changed demand patterns on the rolling stock market in China. Segment sales rose sharply again, however, in the third quarter. The nine-month EBIT margin of 16.6 per cent was in line with the previous year’s excellent performance (16.5 per cent).
At EUR 6.8 million, operating cash flow was highly positive in the third quarter 2017 and almost break-even for the nine-month period (negative EUR 1.0 million). The management team dealt with challenges arising in connection with liquidity primarily by optimising working capital levels.
For the final quarter of the current fiscal year, the Schaltbau Group forecasts highly positive sales and earnings effects, driven partially by the completion of major projects, and therefore confirms its operating guidance for the full fiscal year 2017. Accordingly, based on the current structure, Group sales for 2017 are forecast to come in at the lower end of the guidance range between EUR 520 million and EUR 540 million. Furthermore, the Schaltbau Group forecasts an operating profit of at least EUR 2 million for the full year. The guidance for operating performance does not include the non-operating one-time losses stemming from the revaluation of Schaltbau Sepsa totalling around EUR 28 million, of which EUR 12 million was recognised in the third quarter.
“The recently emerging positive developments in some parts of our business make my colleagues and myself highly optimistic about the sustainable operating potential of the Schaltbau Group. However, in view of the restructuring measures required by the Group, we are still faced with considerable challenges that need to be tackled,” stated Dr Bertram Stausberg, Spokesperson of the Executive Board of Schaltbau Holding AG.
In the Mobile Transportation Technology segment, these challenges include the inadequate productivity in processing orders within Germany. By contrast, the segment’s order situation remains positive. In the Stationary Transportation Technology segment, the order situation has recently become somewhat more stable, albeit below the level seen one year earlier. In the Components segment, sales are brisk and business performance has exceeded expectations.
“Based on the detailed analysis of the Schaltbau Group’s activities that we have performed in recent weeks, we will compile a roadmap for repositioning and strengthening our business. The sale of Sepsa is a key component in this strategy. During the next few months, in our capacity as Executive Board, we will successively work through the measures required to restructure operations and achieve financial security. With this strategy, we are confident of being able to get the Group back on track for success,” said Dr Stausberg in conclusion.

With annual sales of over EUR 500 million and around 3,370 employees, the Schaltbau Group is a 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, industrial brakes for container cranes and wind turbines and also 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.
Christian Schunck
Head of IR
Schaltbau Holding AG
Hollerithstraße 5
81829 Munich
Tel: +49 89 – 93005 209
Fax: +49 89 – 93005 318
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.

Consolidated Income Statement of Schaltbau Holding AG, Munich
for the period 1 January to 30 September 2017


  2017   2016
  EUR 000   EUR 000
Sales 362,981   362,171
Change in inventories      
of finished goods and work in progress 13,476   6,412
Own work capitalised 4,430   2,810
Total output 380,887   371,393
Other operating income 8,036   4,642
Cost of materials 194,966   186,353
Personnel expense 139,340   125,239
Depreciation and amortisation 26,115   11,470
Other operating expenses 45,852   40,829
Loss/profit from operating activities (EBIT) -17,350   12,144
a) Result from at-equity accounted investments 4   -3,592
b) Sundry other result from investments -325   7,326
Results from investments -321   3,734
a) Interest income 451   893
b) Interest expense 8,794   4,467
c) Other financial result -13   0
Financial result -8,356   -3,574
Loss/profit before tax -26,027   12,304
Income taxes 7,053   3,551
Group net loss/profit for the period -33,080   8,753
Allocation of net loss/profit for the period      
attributable to minority shareholders 1,207   3,490
attributable to shareholders of Schaltbau Holding AG -34,287   5,263
Group net loss/profit for the period -33,080   8,753
Earnings per share – undiluted: EUR -5.37   EUR 0.87
Earnings per share – diluted: EUR -5.37   EUR 0.87

Consolidated Balance Sheet of Schaltbau Holding AG, Munich
as at 30 September 2017

      30.09.2017   31.12.2016
      EUR 000   EUR 000
I. Intangible assets 70,602   83,666
II. Property, plant and equipment 86,213   88,361
III. At-equity accounted investments 7,894   3,129
IV. Other investments 3,737   4,031
V. Deferred tax assets 9,765   15,452
      178,211   194,639
I. Inventories 125,105   101,353
II. Trade accounts receivable 106,082   115,241
III. Income tax receivables 1,166   944
IV. Other receivables and assets 31,239   15,009
V. Cash and cash equivalents 21,893   30,018
VI. Assets held for sale 0   1,870
      285,485   264,435
      463,696   459,074


      30.09.2017   31.12.2016
      EUR 000   EUR 000
A. EQUITY      
I. Subscribed capital 8,064   7,506
II. Capital reserves 31,105   16,126
III. Statutory reserves 231   231
IV. Revenue reserves 51,908   62,344
V. Reserve for income/expenses recognised directly in equity -1,889   212
VI. Revaluation reserve 3,041   3,041
VII. Group net loss attributable to shareholders of SBAG -34,287   -15,822
VIII. Equity attributable to shareholders of Schaltbau Holding AG 58,173   73,638
IX. Minority interests 30,100   33,435
      88,273   107,073
I. Pension provisions 37,101   40,154
II. Personnel-related accruals 5,046   4,888
III. Other provisions 12,934   14,628
IV. Financial liabilities 41,562   43,304
V. Other liabilities 1,120   4,557
VI. Deferred tax liabilities 3,252   3,535
      101,015   111,066
I. Personnel-related accruals 7,127   8,432
II. Other provisions 23,699   20,679
III. Current income tax payable 518   337
IV. Financial liabilities 152,920   134,719
V. Trade accounts payable 51,945   42,034
VI. Advance payments received 12,903   12,684
VII. Other liabilities 25,296   21,508
VIII. Liabilities relating to      
  assets held for sale 0   542
      274,408   240,935
      463,696   459,074

Consolidated Cash Flow Statement of Schaltbau Holding AG, Munich 1 January to 30 September 2017

  2017 2016
  EUR 000 EUR 000
Loss/profit from operating activities (EBIT) -17,350 12,175
Depreciation, amortisation and impairment losses
on intangible assets and property, plant and equipment
26,115 11,457
Gains/losses on the disposal of intangible assets
and property, plant and equipment
54 -245
Change in current assets -21,791 910
Change in provisions 259 -1,040
Change in current liabilities 16,180 -3,847
Dividends received 0 200
Income taxes paid -2,391 -6,051
Other non-cash income/expenses -2,110 233
Cash flows from operating activities -1,034 13,792
Payments for investments in:    
– Intangible assets and property, plant and equipment -11,999 -12,125
– Financial investments -5,228 -687
– Acquisitions of fully consolidated entities less cash
0 -866
Proceeds from disposals of:    
– Property, plant and equipment 56 13
– Financial investments 8 190
– Business units 3,933 2,991
Cash flows from investing activities -28,769 -10,484
Sale of shares 0 4,057
Equity capital increase 15,537 0
Dividend payment by Schaltbau Holding AG 0 -6,020
Distribution to minority interests -3,496 -2,268
Loan repayments -4,273 -5,302
Loans raised 4,141 540
Interest paid -5,979 -4,961
Interest received 503 272
Change in other financial liabilities -1,399 9,864
Cash flows from financing activities 5,034 -3,818
Change in cash funds due to exchange rate fluctuations -990 -976
Change in liquid funds due to changes in the group reporting entity 0 0
Change in cash funds -25,759 -1,486
Cash funds at the end of the period* 5,418 31,189
Cash funds at the beginning of the period 31,177 32,675
  -25,759 -1,486

* Cash funds as of 30 September 2017 for the first time include liabilities on current accounts.

Christian Schunck
Head of Investor Relations & Corporate Communications
Schaltbau Holding AG
Hollerithstraße 5
81829 München
T +49 89 93005 209

21.11.2017 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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