May 12, 2017

Press release

Quarterly results 1/2017

  • Revenues up slightly at € 181.9 million thanks to increases in Europe and USA 
  • Lower capacity utilization negatively impacts EBIT in first quarter of 2017 
  • Management expects revenues and earnings similar to 2016 in 2017 
KEY CORPORATE FIGURES1/2016 1/2017 
Revenuesin € million172.0181.9
EBITin € million3.4(3.1)
Net profit for the periodin € million2.8(2.6)
Cash flow from operating activitiesin € million(53.6)(49.7)
Equity in % of total assets33.7%35.1%
Earnings per share0.0(0.7)
Employees as of March 313,2413,360
Order backlog as of March 31in € million861.7790.6

 

A similar development to 2016 is expected on the global firefighting markets in 2017. Above all demand is currently being driven by countries with continuous procurement or elevated security requirements following natural or terrorist disasters.

Development of revenues and earnings
The Rosenbauer Group generated revenues of € 181.9 million in the first quarter of 2017 (1–3/2016: € 172.0 million). While decreases in deliveries were observed in some Middle Eastern countries, deliveries were on the rise in North America and parts of Europe.

The first three months of the current year once again showed that the first quarter is always significantly weaker in terms of revenues and income. This is partly because the majority of deliveries are usually made in the second half of the year. These seasonal fluctuations over the course of the year are partially leveled out by centrally managed procurement that is not based on government budgets.

In the first quarter, EBIT was down on the previous year at € –3.1 million (1–3/2016: € 3.4 million). The difference in comparison to the first quarter of the previous year was mainly attributable to low capacity utilization due to the political situation in the Gulf States and the resulting lower coverage of fixed costs at the plants in Leonding, combined with the lack of any highly profitable deliveries and the start-up costs for the platform manufacturer Rosenbauer Rovereto. Consolidated EBT for the reporting period amounted to € –2.8 million (1–3/2016: € 3.6 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, lasting several months, for vehicles in production. In addition, the high intra-year level of total assets of € 678.5 million (March 31, 2016: € 687.9 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 € 211.1 million in the reporting period (March 31, 2016: € 204.2 million), while construction contracts were down year-on-year at € 73.8 million (March 31, 2016: € 101.2 million) due to changes in capacity utilization. Current receivables were kept at the previous year’s level at € 183.7 million (March 31, 2016: € 179.1 million). The Group’s net debt (the net amount of interest-bearing liabilities less cash and cash equivalents and securities) decreased yearon- year to € 227.4 million (March 31, 2016: € 262.0 million).

Owing to the high level of working capital – due to high customer receivables – the intra-year cash flow from operating activities was still negative at € –49.7 million (1–3/2016: € –53.6 million). An improvement in the cash flow from operating activities is expected by the end of the year.

Outlook
The uncertainty regarding the development of the firefighting markets has increased tangibly in recent months. Geopolitical 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.

With a strong market presence, geographically balanced business, its broad portfolio, technology leadership and financial strength, Rosenbauer is well placed to take advantage of these opportunities for profitable, long-term growth. It will continue to focus on efficiency enhancement and cost reduction so as to ensure that the intended growth can be implemented on a solid financial basis. Despite the lower capacity utilization at the beginning of the year due to project effects and the sustained margin pressure in the developed markets in addition to the above factors, management is aiming to keep revenues and earnings at the previous year’s level.

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