Stabilus S.A.: Solid growth in the first 9 months of FY2018, guidance confirmed
Aug 06, 2018 7:00 AM
DGAP-News: Stabilus S.A. / Key word(s): 9-month figures/Quarter Results
Stabilus S.A.: Solid growth in the first 9 months of FY2018, guidance confirmed
- Revenues in first nine months of FY2018 +6.2 percent to EUR 731.7 million
- Adjusted EBIT in first nine months +9.0 percent to EUR 112.7 million
- Nine-month profit +5.2 percent to EUR 72.6 million
- Free cash flow (FCF) in first nine months +36.7 percent to EUR 71.9 million
- Guidance for 2018 fiscal year confirmed
Luxembourg/Koblenz, August 6, 2018 - Stabilus S.A. (ISIN: LU1066226637), one of the world's leading suppliers of gas springs, damping solutions and electromechanical drives for motion control, successfully maintained its solid growth trajectory in the first nine months of its 2018 fiscal year, which ends on September 30.
Third-quarter group revenues in fiscal 2018 rose year-on-year by 7.2 percent to EUR 250.2 million (Q3 FY2017: EUR 233.5 million). Following adjustment for currency effects, group operating revenues grew by 10.4 percent. In the first nine months of the current fiscal year, Stabilus S.A. thus reported revenues of EUR 731.7 million, up from EUR 689.1 million during the first three quarters of FY2017 (+6.2 percent; adjusted for currency movements +10.4 percent).
Dr. Stephan Kessel, who since August 1, 2018 has been acting in the capacity of interim CEO of Stabilus, stated: "Stabilus has posted a very good set of results for the past nine-month period, putting us on track to once again top our previous fiscal year. The figures are a reflection of the sustained demand for our motion solutions across a wide range of industries. Stabilus also looks ahead to major future market potentials that we will realize with our strategy plan STAR 2025."
Solid operational gains across all regions, +34.3 percent in growth region Asia
In the Europe region, revenues advanced in Q3 FY2018 by 10.0 percent to EUR 128.8 million, lifted by strength in both the industrial and automotive businesses. In the NAFTA region, revenues were down year-on-year by 3.7 percent to EUR 88.9 million, US dollar weakness in the past quarter having been the main reason for this decline (average exchange rate 1.19$/EUR in Q3 FY2018 vs. 1.10$/EUR in Q3 FY2017). Factoring out currency effects, growth in the NAFTA region in Q3 FY2018 stood at +4.7 percent. In Asia / Pacific and RoW (Rest of World), the company posted a year-on-year increase in revenues of 34.3 percent to EUR 32.5 million. Impacting especially positively here was the growth in sales of Powerise systems, which rose from EUR 0.9 million in Q3 FY2017 to EUR 7.1 million in Q3 FY2018. Markus Schädlich, who joined the Stabilus S.A. management board as of July 1, 2018 to oversee the company's Asia business, stated: "The Asia region is a key growth market for Stabilus. Of quite particular importance is China on account of the international manufacturers producing there, and also owing to the large number of locally based companies. Our strong and profitable revenue growth in the region shows just how much potential the market has to offer. The investments we made there enable us to act quickly and in close proximity to our customers."
Solid growth in the automotive and industrial business
A breakdown by markets reveals that solid growth was reported in both the automotive and industrial businesses in the third quarter of the 2018 fiscal year. In the automotive segment, the company boosted revenues by 8.1 percent to EUR 160.7 million (Q3 FY2017: EUR 148.7 million). Once currency effects are factored out, growth at the operational level stood at 11.8 percent, significantly above growth rates in the automotive market itself, in which the number of vehicles manufactured worldwide in Q3 FY2018 rose by 4.0 percent to 24.0 million units. In operational terms, the automotive segment continued to benefit from the ongoing shift to SUVs and large-hatchback vehicles, which generates strong demand for comfort solutions incorporating gas springs and Powerise drives. Overall, the automotive business accounted for 64 percent of aggregate revenues in the third quarter of the 2018 business year. Accounting for the remaining 36 percent was the industrial business, where revenues advanced by 5.5 percent from EUR 84.8 million during the same quarter in the previous fiscal year to EUR 89.5 million in Q3 FY2018. Following adjustment for currency effects, growth stood at 8.1 percent. In its industrial business, Stabilus posted particularly strong growth in the segments agricultural machinery and construction plant, buses, commercial vehicles, and the independent aftermarket.
Adjusted EBIT margin remains strong at 15.8 percent in the third quarter
Adjusted operating income (adjusted EBIT) rose in Q3 FY2018 by 11.0 percent to EUR 39.5 million, equivalent to an adjusted EBIT margin of 15.8 percent, up from 15.2 percent during the same quarter in the previous year, Q3 FY2017. In the first nine months of fiscal 2018, the company thus reported an adjusted EBIT of EUR 112.7 million, rising from EUR 103.4 million during the same period in the prior year (+9,0 percent) and equivalent to an EBIT margin of 15.4 percent, moving forward from a figure of 15.0 percent for the comparative period one year earlier.
Free cash flow (FCF) in Q3 FY2018 stood at EUR 40.4 million, the figure for the same period in the prior year having been EUR 30.5 million. FCF for the first three quarters of FY2018 totalled EUR 71.9 million (nine months FY2017: EUR 52.6 million).
Stabilus confirms the increased guidance as set out in the half-yearly report for 2018, forecasting organic growth for the full 2018 fiscal year (at constant $/EUR rates) of 8.8 percent. Assuming an average USD/EUR exchange rate of 1.20 USD/EUR during the 2018 fiscal year, this would be equivalent to anticipated revenue growth of 5.5 percent to some EUR 960 million. The forecast for an adjusted EBIT margin of approx. 15.5 percent is upheld.
An English-language quarterly statement for Q3 FY2018 can be downloaded from the Investor Relations section at www.ir.stabilus.com.
 Cf. definition/calculation of KPIs 'adjusted EBIT' and 'free cash flow (FCF)' provided in the quarterly statement for Q3 FY2018, pp. 7 and 12, which can be accessed through the following link: http://ir.stabilus.com/websites/stabilus/English/4006/financial-reports-_amp_-presentations-2018.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. Stabilus has reported sales revenues of EUR 910.0 million in the 2017 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.
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.
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