August 11, 2017

Press release

Results of the first half year 2017

  • Consolidated revenues up slightly at € 393.6 million as a result of deliveries
  • EBIT negatively impacted by lower capacity utilization and one-time effects 
  • EBIT margin of around 3% anticipated for 2017 with consolidated revenues remaining unchanged
KEY CORPORATE FIGURES 1-6/2016 1-6/2017 
Revenuesin € million383.4393.6
EBITin € million18.82.7
Net profit for the periodin € million13.43.4
Cash flow from operating activitiesin € million(31.2)(51.7)
Equity in % of total assets 32.1%33.6%
Earnings per share1.2(0.3)
Employees as of June 30 3,2613,315
Order backlog as of June 30in € million812.9812.0

Revenue and earnings development
The Rosenbauer Group generated revenues of € 393.6 million in the first half of 2017 (1-6/2016: € 383.4 million). While decreases in deliveries were observed in some Middle Eastern countries, deliveries were on the rise in parts of Europe, such as the Netherlands.

EBIT was down on the previous year at € 2.7 million in the first half of the year (1-6/2016: € 18.8 million). The results for the first half of the year were reduced by weak capacity utilization on account of the political situation in the Gulf States and the resulting lower coverage of fixed costs at the plants in Leonding, combined with the significantly higher start-up costs of the platform manufacturer Rosenbauer Rovereto. In addition, one-time costs for the reorganization of the staff structure in Austria, impairment losses on intangible assets and exchange rate effects also led to an unplanned deviation in results for the first half of the year.

Consolidated EBT for the reporting period amounted to € 3.7 million (1-6/2016: € 17.1 million).

The Rosenbauer Group enjoyed satisfactory order development in the first six months of the year, with incoming orders of € 458.3 million (1-6/2016: € 376.5 million). While incoming orders decreased significantly in countries that are dependent on oil and commodity prices or that had to restructure their budgets due to conflicts, incoming orders were up in North America and in some parts of Europe. The order backlog as of June 30, 2017 was on par with the previous year’s level at € 812.0 million (June 30, 2016: € 812.9 million).

Financial and net assets position
For reasons specific to the industry, the structure of the statements of financial position during the year is characterized by high working capital. This is due to the turnaround times of several months for vehicles in production. Total assets are therefore relatively high during the year at € 685.4 million (June 30, 2016: € 695.0 million). As a result of the delivery volume in the second half of the year, inventories were up in the reporting period at € 224.7 million (June 30, 2016: € 208.4 million), while construction contracts were down slightly on the previous year on account of deliveries at € 98.5 million (June 30, 2016: € 101.8 million). Current receivables were reduced to € 165.2 million (June 30, 2016: € 181.3 million). The Group’s net debt (the net amount of interest-bearing liabilities less cash and cash equivalents and securities) decreased year-on-year to € 247.9 million (June 30, 2016: € 261.6 million).

Owing to the high level of working capital, especially in inventories, the intra-year cash flow from operating activities is still negative compared to the end of 2016 at € -51.7 million (1-6/2016: € -31.2 million). An improvement in the cash flow from operating activities is expected by the end of the year.

A similar development to the previous year is expected on the global firefighting markets in 2017. The uncertainty regarding the development of the firefighting markets has increased tangibly in recent months. Political tension and the low price of oil could affect growth on certain markets in 2017 as well. Overall, however, stable development in global demand for firefighting technology is assumed.

The Group will continue to focus on efficiency enhancement and cost reduction to ensure that the intended growth can be implemented on a solid financial basis. In addition, far-reaching changes have been made in Rosenbauer’s management and organizational structure that led to non-recurring expenses.

Owing to project-related lower capacity utilization and the change in the production program, the one-time effects described above and the limited visibility with regard to currency developments, the Executive Board has revised its outlook for 2017 and is now forecasting an EBIT margin after extraordinary effects of around 3% with consolidated revenues at a consistent level.

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