November 17, 2016

Press release

Quarterly results 3/2016

  • Consolidated revenues down at € 602.9 million due to deliveries
  • Increase in deliveries in North America and parts of Europe
  • EBIT on similar scale to previous year at € 27.3 million
  • 2016:  Revenues and EBIT expected to be on similar scale to previous year
KEY CORPORATE FIGURES1-9/2015 1-9/2016Change %
Revenuesin € million627,5602,9-4 %
EBITin € million27,627,3-1 %
Net profit of the periodin € million21,119,6-7 %
Cash flow from operating activitiesin € million-67,0-24,7-
Equity in % of total assets32,7 %32,1 %-2 %
Investmentsin € million17,017,32 %
Earnings per share1,51,816 %
Employees as of September 303.0673.3208 %
Order backlog as of September 30in € million846,1803,5-5 %
Order intakein € million698,6588,8-16 %


The firefighting industry is facing a range of different challenges in 2016 as well. Trends in demand should remain stable on the North American market. In Europe, the industry is recording a slight upturn. Demand from Asia and the Middle East can be expected to decline in 2016 due to the deteriorating general economic situation there and the low oil price.

Revenues
The Rosenbauer Group generated revenues of € 602.9 million in the first three quarters of 2016 (1-9/2015: € 627.5 million). Although revenues climbed by 4% to € 219.5 million in the third quarter of the current year, this did not yet compensate for the decline in revenue in the first half of the year. While decreases in deliveries were observed in some Middle Eastern countries, deliveries were on the rise in North America and parts of Europe.

The revenues of G&S Brandschutztechnik of € 12.2 million were included in the consolidated financial statements for the first time in the reporting period.

In July 2016, Rosenbauer International AG founded a joint venture for business with hydraulic firefighting and rescue platforms together with the Italian manufacturer CTE SpA, based in Rovereto. The revenues of Rosenbauer Rovereto of € 0.4 million were included in the consolidated financial statements for the first time in the reporting period.

Result of operations
In the first three quarters, EBIT was on a similar scale to the previous year at € 27.3 million (1-9/2015: € 27.6 million). Owing to delays in deliveries due to the political situation in the Gulf States and the resulting lower coverage of fixed costs, combined with lower gross margins on orders delivered, the EBIT margin was still at the previous year’s level after the third quarter at 4.5% (1-9/2015: 4.4%). Owing to the remeasurement of forward transactions, net finance costs deteriorated year-on-year to € -2.3 million (1-9/2015: € -1.7 million).

Consolidated EBT for the reporting period amounted to € 25.3 million (1-9/2015: € 26.4 million).

Orders
The Rosenbauer Group recorded a modest order development in the first three quarters of the year, with incoming orders amounting to € 588.8 million (1-9/2015: € 698.6 million). The order backlog as of September 30, 2016 was down on the previous year’s figure at € 803.5 million (September 30, 2015: € 846.1 million). This order backlog gives the Rosenbauer Group a satisfactory level of capacity utilization at its production facilities and good visibility for the next ten months.

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, lasting several months, for vehicles in production. In addition, the high intra-year level of total assets of € 708.9 million (September 30, 2015: € 647.0 million) is attributable to the increase in property, plant and equipment financed by equity.

As a result of the upcoming delivery volume in the current year, inventories rose to € 197.9 million in the reporting period (September 30, 2015: € 189.6 million), while construction contracts remained at a high level of € 109.0 million (September 30, 2015: € 102.9 million). As a result of increased deliveries before the reporting date, receivables from customers were up year-on-year at € 194.2 million (September 30, 2015: € 176.1 million). The Group’s net debt (the net amount of interest-bearing liabilities less cash and cash equivalents and securities) is therefore still at a high level of € 266.5 million (September 30, 2015: € 253.9 million).

Owing to the high level of working capital – particularly due to high customer receivables – the cash flow from operating activities was still negative at € -24.7 million (1-9/2015: € -67.0 million). An improvement in the cash flow from operating activities is expected by the end of the year.

Outlook
There was a decline in demand for fire service equipment in some Asian countries in the first few months of 2016. As a result of the political unrest and the low oil price, there is no discernible trend indicating that it will be possible to compensate for this weak demand by the end of the year. Furthermore, the political situation in the Gulf States is also leading to delays in deliveries in the current year.

The resulting weaker development of revenues means that – despite positive effects from the measures to enhance efficiency and reduce costs – the originally forecast improvement in earnings for the 2016 financial year cannot be achieved and earnings are instead expected to be on a similar scale to the previous year.

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