DGAP-Ad-hoc: Westag & Getalit AG / Key word(s): Quarterly / Interim Statement/Quarter Results
Westag & Getalit AG: Sales revenues below previous year at nine-month stage 2018; consolidated earnings below previous year due to cost increases and material one-time effects
31-Oct-2018 / 12:09 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
Rheda-Wiedenbrück, October 30, 2018
In the first nine months of the fiscal year 2018, Westag & Getalit AG generated consolidated revenues of EUR 176.2 million. Revenues thus fell short of the previous year's EUR 177.5 million. Domestic revenues again declined during the nine-month period, whereas the Group's export revenues rose by 8.1% to EUR 44.1 million (previous year: EUR 40.8 million). Consequently, the export share increased from 23.0% to 25.1%.
Sales revenues of the Doors/Frames Division amounted to EUR 95.0 million in the first nine months of 2018 (previous year: EUR 96.1 million). The Surfaces/Elements Division generated revenues of EUR 78.1 million (previous year: EUR 75.9 million). The Central Division's revenues dropped sharply from EUR 5.5 million to EUR 3.1 million due to the major overhaul of the cogeneration unit which started in June 2018.
Consolidated earnings before taxes in the amount of EUR 3.5 million (previous year: EUR 7.0 million) have again been influenced by different factors in the current fiscal year to date. At the operational level, increased material prices and higher forwarding expenses resulting from a shortage of freight capacities resulted in lower profit contributions from our own products in the past months. Moreover, the major overhaul of the cogeneration unit, which commenced in early June 2018 and could not be completed before mid-October 2018 because of unplanned high repair requirements, had an adverse effect worth EUR 3.0 million on the bottom line. The scheduled overhaul had revealed that an unexpectedly comprehensive repair of the generator was required. Due to the extended downtime, this led to a shortfall in revenues as well as to higher expenses for alternative energy sources and for repairs. Another extraordinary effect related to consulting expenses in the amount of EUR 0.6 million that became necessary in conjunction with the public takeover bid for the company's shares announced on June 11, 2018.
Consequently, the Group's net profit for the period also declined sharply to EUR 2.4 million (previous year: EUR 4.9 million). Net profit per share amounted to EUR 0.43 for the ordinary shares (previous year: EUR 0.89) and to EUR 0.49 for the preference shares (previous year: EUR 0.95).
The company projects a generally positive market trend for the remaining course of 2018. On the condition that revenues in the Surfaces/Elements Division will stay above the prior year level and that the cogeneration unit will run smoothly after completion of the overhaul, the Management Board now projects total sales revenues to be on a par with the previous year.
In the long term, the company expects to generate growing revenues again also in the domestic market. The fact that the product portfolios are precisely tailored to the individual markets makes the Management Board optimistic that the company will be able to further expand its export activities assuming a benign economic environment.
The overhaul of the cogeneration unit completed in mid-October 2018 will continue to weigh on the bottom line in the fourth quarter of 2018. Against the background of the one-time effects described above, the Management Board expects earnings for the full year 2018 to be considerably lower than in the previous year.
Redemption of own shares and capital reduction
The Management Board of Westag & Getalit AG today decided, with the consent of the Supervisory Board, to redeem all preference shares (365,066 shares) held by the company, which have been acquired over the past years on the basis of various repurchase authorisations, and to reduce the subscribed capital by the corresponding amount of EUR 934,586.96. This is equivalent to 6.38% of the share capital. The redemption will be made on the basis of the authorisation granted by the Annual General Meeting of Westag & Getalit AG on August 18, 2015.
The above release and further information on Westag & Getalit are available on the Internet at www.westag-getalit.com.
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