R. STAHL still influenced by the economic crisis during Q2
Confident forecast for full year 2010
With € 103.8 million R. STAHL achieved consolidated sales on last year's level during the first half of 2010. With € 106.9 million order intake also almost reached the reference value of 2009. This reflects that, as expected, the second quarter of 2010 has still been influenced by a difficult economic environment for the expert in explosion protection.
Programs for cost reduction improve profit situation
The Waldenburg-based group could increase earnings before taxes (EBT) by 28% to € 6.6 million during the first half of the year. Sales revenues thus rose to 6.4% after 4.4% for the full year 2009. This is a result of the successful implementation of the cost efficiency programs which have already been started before the crisis.
Earnings per share increased by 54% to € 0.77.
Sales growth abroad
During the period under review, R. STAHL could increase sales in all regions abroad. In the Americas the group realized growth of 31%. This can also be attributed to the acquisition of Canadian Omega and the operative growth in Canada and South America. In the Asia/Pacific region, sales increased by 17%. Both figures are evidence for the successful implementation of the growth strategy: to expand the market shares in these regions.
Growth through acquisitions
Since the second quarter of 2010 there are three new parts of the group: British Clifford & Snell is a specialist for signalling devices. The company has been taken over in the form of an asset deal. With this business, R. STAHL now is on position two in the European market for explosion-protected alarm and signalling devices. Sales volume in this sector is to be increased significantly.
At the beginning of July, Cologne Screen-Tec GmbH could be integrated into the group. With the products of this start-up company, R. STAHL can further expand their market leadership in explosion-protected visualization systems. The management expects significant growth in the next three years.
In order to take the strongly growing South-American market into account, R. STAHL do Brasil started work in July. Among others, there are huge amounts of oil and gas deposits in Brazil which will be developed in the next ten years. The 100% subsidiary was founded in close cooperation with the previous representation in Brazil. Management and employees as well as the existing activities have been taken over.
With confidence into the second half of 2010
In the second half of the year the effects of the economic crisis should be overcome for R. STAHL. Projects already started again in the major customer industries and their order books are filling up. R. STAHL can already feel a significant increase in inquiries. The Executive Board is confident that after the end of the usual summer break order intake and sales will increase again. However, bottlenecks on the procurement market might dampen development of sales a bit. Price situation will remain tense. With the optimization programs the costs are kept in check so that additional effects on earnings may be expected with growing order intake and sales.
From today's point of view the management assumes that for the full year 2010 consolidated sales of € 210 to 220 million and earnings before taxes between € 14 and 15 million will be achieved.
Other news from the department business & finance
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