DGAP-News: Stabilus S.A. / Key word(s): Quarter Results/9-month figures
Stabilus S.A. reports strong revenue growth in the third quarter of fiscal 2017 and raises revenue guidance
- Revenue in Q3 FY2017 +27.7 percent to EUR 233.5 million / 9M FY2017 +29.8 percent to EUR 689.1 million
- Adjusted EBIT Q3 +52.8 percent to EUR 35.6 million / 9M +50.1 percent to EUR 103.4 million
- Q3 earnings EUR 23.3 million (Q3 FY2016: EUR 11.5 million) / 9M earnings EUR 67.7 million (9M FY2016: EUR 35.9 million)
- Full-year revenue guidance raised to approx. EUR 910 million, adjusted EBIT-margin estimated at ca. 15 percent
Luxembourg/Koblenz, August 11, 2017 - Stabilus S.A. (ISIN: LU1066226637), one of the world's leading suppliers of gas springs, damping solutions and electromechanical drives for motion control, completed the third quarter of fiscal 2017, which ends on September 30, by reporting further strong revenue growth across all markets and regions. High demand for Stabilus motion control solutions continues to be sustained by the megatrends comfort, ergonomics, and safety in the workplace.
In the third quarter of the fiscal year, group revenues advanced to EUR 233.5 million, equivalent to a year-on-year rise of 27.7 percent (Q3 FY 2016: EUR 182.8 million). Exchange rate effects and acquisitions - ACE, Hahn Gasfedern, Fabreeka and Tech Products - completed in 2016 made a EUR 32.2 million contribution to this revenue growth. If acquisitions and exchange rate effects are factored out, growth stood at 10.1 percent. In the first nine months of the current fiscal year, Stabilus S.A. thus reported revenues of EUR 689.1 million, up from EUR 531.0 million in the first nine months (9M) of FY2017 (+29.8 percent).
Third-quarter revenues showed significant year-on-year growth right across all regions: in Europe, sales advanced by 26.3 percent, boosted primarily by the Powerise division. In the NAFTA region, too, Powerise products were the strongest driver of growth. Revenues here rose by 34.0 percent. Asia / Pacific and RoW (Rest of World) reported revenue growth of 14.2 percent, primarily due to sales of gas springs in the automotive sector.
A breakdown by markets shows revenues to have advanced year-on-year particularly strongly in the industrial unit: at EUR 84.8 million, Q3 FY2017 revenues were 68.9 percent above the figure for the same quarter in the previous year (EUR 50.2 million). This unit comprises the Capital Goods, Vibration & Velocity Control, and Commercial Furniture (formerly: Swivel Chair) divisions. The Vibration & Velocity Control division, in which the companies acquired in June 2016 - ACE, Fabreeka and Tech Products - are grouped, made a particularly strong contribution to the substantial growth seen here. As such, industrial business now accounts for 36 percent of all group revenues. The remaining 64 percent derives from the automotive division, where revenues rose by 12.1 percent to EUR 148.7 million (Q3 FY2016: EUR 132.7 million). Automotive continues to benefit principally from the success of the Powerise range, sales of which, thanks to new product launches and the ramping up of production for newly won OEM platforms, were up 26.2 percent compared to the equivalent quarter in 2016.
Similarly, a year-on-year comparison shows key operative performance indicators at Stabilus S.A. to have also developed positively. Adjusted profit from operating activities (adjusted EBIT) stood at EUR 35.6 million in Q3 FY2017, an increase of 52.8 percent over the previous year's figure of EUR 23.3 million. That is equivalent to an adjusted EBIT margin of 15.2 percent. In the first nine months of fiscal 2017, the company thus reported an adjusted EBIT of EUR 103.4 million, up from EUR 68.9 million for the same period in the previous year (+50.1 percent).
Third-quarter net profit in FY2017 more than doubled, increasing from EUR 11.5 million to EUR 23.3 million. For the first nine months of FY2017, Stabilus has posted earnings of EUR 67.7 million, advancing from EUR 35.9 million for the same period in the previous year (+88.6 percent).
Dietmar Siemssen, CEO of Stabilus, stated: "For the past four quarters, the companies acquired last fiscal year have been reporting sustained growth at the level of both revenues and earnings. We see this as proof of their successful integration into the group and the opportunities this gives us to face the market as a combined and unified entity. The acquisitions have significantly strengthened the industrial division, helping to diversify our business still further. This unit is currently benefiting from growth in industries as diverse as aircraft construction, engineering and solar technology, as well as a recovery in the markets for agricultural and construction machinery. Yet we have also posted solid organic growth in a number of different areas. Although auto industry production figures either stagnated or declined slightly in many markets during the past quarter, demand for our products has increased, most notably for our innovations. In many industries, these new developments facilitate greater convenience and improved ergonomics for users operating a range of products and systems."
Mark Wilhelms, Stabilus CFO, added: "On the earnings side, Stabilus is benefiting from the operative excellence programs and the highly profitable acquisitions made in fiscal 2016, together with lower financing costs. This gives us the required latitude to continue to invest in the growth of Stabilus and to take advantage of the opportunities available to us in a manner fully aligned with the interests of our customers, shareholders, employees, and business partners."
Based on the strong results of the first nine months and an updated forecast for the remaining three months of fiscal 2017, the management board raised full-year revenue guidance for fiscal 2017 (ending on 30.9.2017) to EUR 910 million. With approx. 15 percent, the adjusted EBIT margin is estimated to be at the upper end of the previously communicated range of 14 to 15 percent, up from 13.4 percent in fiscal 2016.
The full report for the third quarter of fiscal 2017 can be downloaded in our Investor Relations area at www.ir.stabilus.com.
 See definition/calculation of 'adjusted EBIT' in Interim Report Q3 FY2017, page 9, under http://ir.stabilus.com/websites/stabilus/English/4007/financial-reports-_amp_-presentations-2017.html.
As one of the world's leading suppliers of gas springs, damping solutions and electromechanical drives, Stabilus has for eight decades been demonstrating its expertise in the automotive industry and a variety of other sectors. Gas springs, dampers and electromechanical POWERISE drives from Stabilus optimize opening, closing, lifting, lowering and adjusting operations, and also protect against vibrations. Employing a workforce of more than six thousand worldwide, the company has its operational headquarters in Koblenz. In the 2016 fiscal year, Stabilus reported sales revenues of EUR 737.5m. Stabilus has a global production network encompassing plants in nine countries. Additionally, the Group maintains regional offices and relations to sales partners in over fifty countries in Europe, North, Central and South America, and in Asia Pacific. Stabilus is listed in the Prime Standard segment of the Frankfurt Stock Exchange and included in the SDAX index.
This press release may contain forward-looking statements based on current assumptions and forecasts made by Stabilus Group management and other information currently available to Stabilus. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here.
11.08.2017 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
|2, rue Albert Borschette|
|Grand Duchy of Luxembourg|
|Phone:||+352 286 770 1|
|Fax:||+352 286 770 99|
|Listed:||Regulated Market in Frankfurt; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange|
|End of News||DGAP News Service|