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Stabilus S.A. releases preliminary fiscal 2018 figures showing a strong rise in both revenues and earnings

DGAP-News: Stabilus S.A. / Key word(s): Preliminary Results/Forecast

16.11.2018 / 07:00
The issuer is solely responsible for the content of this announcement.



CORPORATE NEWS

Stabilus S.A. releases preliminary fiscal 2018 figures showing a strong rise in both revenues and earnings

- Preliminary revenues for FY2018 +5.8 % to EUR 962.6 million

- Adjusted EBIT[1] FY2018 +8.5 % to EUR 149.3 million

- FY2018 profit +33.1 % to EUR 105.4 million

- Free cash flow (FCF[1]) in FY2018 +28.8% to EUR 100.2 million

- Forecast for fiscal 2019 points to further profitable growth and revenues exceeding one billion euros for the very first time: revenue growth of approx. 5 % (at year-on-year constant USD/EUR exchange rate) and an adjusted EBIT[1] margin of ca 15.5 % expected for FY2019

Luxembourg/Koblenz, November 16, 2018 - Stabilus S.A. (ISIN: LU1066226637), one of the world's leading suppliers of gas springs, damping solutions and electromechanical drives for motion control, has released preliminary figures showing the company to have closed out the 2018 fiscal year, which ended on September 30, with a strong rise in both revenues and earnings.

The group reported a preliminary rise in revenues for fiscal 2018 of 5.8 percent to EUR 962.6 million (FY2017: EUR 910.0 million). At year-on-year constant USD/EUR exchange rate group revenues grew by 8.8 percent. The adjusted EBIT margin stood at 15.5 percent, up from 15.1 percent in the previous year. Stabilus has thus fully met its forecasts for fiscal 2018.

Solid growth across all regions

In the Europe region, revenues in FY2018 climbed by 7.7 percent to EUR 491.3 million, driven by both the strong Industrial/Capital Goods and Powerise business. In the NAFTA region, revenues were slightly down year-on-year, falling back by 0.7 percent to EUR 348.1 million, this decline having been principally due to the weakness of the USD during the past fiscal year (average exchange rate 1.19 USD/EUR in FY2018 as opposed to 1.10 USD/EUR in FY2017). Before USD/EUR currency translation effect, revenue growth in the NAFTA region in FY2018 stood at +7 percent. In Asia / Pacific and RoW (Rest of World), the company posted a year-on-year increase in revenues of 19.5 percent to EUR 123.1 million. Especially positive in terms of its impact in the Asia / Pacific and RoW region was the growth in revenues from Powerise systems, which advanced from EUR 5.8 million in FY2017 to EUR 22.4 million in FY2018, a trend chiefly attributable to new business with both western OEMs operating in the region and Chinese OEMs.

Growth in both automotive and industrial businesses

A breakdown by markets shows both the automotive and industrial business to have reported solid growth in the 2018 fiscal year. In the automotive segment, the company saw revenues advance by 4.6 percent to EUR 610.6 million (FY2017: EUR 583.7 million). At year-on-year constant USD/EUR exchange rate, revenue rose by 7.9 percent, a figure significantly above growth rates in the automotive market as whole, in which the number of vehicles produced worldwide grew in FY2018 by 1.0 percent to 96.0 million units. The automotive business continued to benefit from the ongoing trend towards SUVs and large-hatchback vehicles, which creates sustained demand for comfort solutions featuring gas springs and Powerise drives. In all, the automotive business accounted for 63 percent of aggregate sales revenues in the 2018 fiscal year. The remaining 37 percent was generated by the industrial business, where revenues rose by 7.9 percent, from EUR 326.3 million in previous year to EUR 352.0 million. At year-on-year constant USD/EUR exchange rate, revenue growth stood at 10.4 percent. Stabilus reported particularly strong rates of growth in the field of agricultural and construction machinery, buses, commercial vehicles, and medical technology.

Adjusted EBIT margin of 15.5 percent, dividend to be proposed for fiscal 2018

The preliminary figures show adjusted profit from operating activities (adjusted EBIT[1]) to have improved in FY2018 by 8.5 percent to EUR 149.3 million. This is equivalent to an adjusted EBIT[1] margin of 15.5 percent, up from 15.1 percent in the previous year.

Profit for FY2018 was, at EUR 105.4 million, 33.1 percent higher than in the prior year (EUR 79.2 million), and free cash flow (FCF[1]), at EUR 100.2 million, 28.8 percent higher than the previous year's figure (EUR 77.8 million). With the publication of the final figures on December 14, 2018, and in line with the company's dividend policy, the Stabilus management board and the supervisory board are planning to propose to the annual general meeting a dividend distribution for FY2018.

Dr. Stephan Kessel, CEO of Stabilus, stated: "Stabilus has performed solidly while reporting profitable growth across all regions, thus highlighting the strength of our overall performance in what is a heterogeneous market environment. Our fundamental growth drivers - the global megatrends demographic change, higher living standards, and a growing demand for comfort, together with more stringent occupational health and safety requirements - will continue to impact our business positively over the longer term. For us, these trends are a source of major potential that we will tap by developing innovative applications for the automotive and industrial segments in all production sizes and volumes. We are expecting revenues in the current 2019 fiscal year to top one billion euros for the very first time - an outstanding milestone for our customers, workforce, business partners, and shareholders."

Forecast for fiscal 2019 points to further profitable growth

For fiscal 2019 Stabilus is expecting revenues to grow by some 5 percent to approximately EUR 1,010 million (at year-on-year constant USD/EUR exchange rate of 1.19) and an adjusted EBIT margin of approx. 15.5 percent. Furthermore, Stabilus confirms its STAR 2025 mid- and long-term guidance for average annual growth of at least 6 percent.

A presentation to accompany the preliminary figures for the 2018 fiscal year can be downloaded from the company's website at Investors / Financial Reports & Presentations 2018. Final figures and the annual report for fiscal 2018 will be published on December 14, 2018.

________________________

[1] Cf. definition/calculation of KPIs 'adjusted EBIT' and 'free cash flow (FCF)' provided in our current financial reports and results presentations, e.g. in our presentation on the preliminary FY2018 results, pp. 23-27, that can be downloaded from the company's website at Investors / Financial Reports & Presentations 2018.

 

Investor contact:
Andreas Schröder
Tel.: +352 286 770 21
E-Mail: anschroeder@stabilus.com

Press contact:
Tobias Eberle
Tel.: +49 69 794090 24
E-Mail: Tobias.Eberle@charlesbarker.de
Charles Barker Corporate Communications

About Stabilus

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. According to preliminary figures, Stabilus has reported sales revenues of EUR 962.6 million in the 2018 fiscal year. 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.

Important Notice

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.



16.11.2018 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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