DGAP-News: technotrans SE / Key word(s): Half Year Results/Quarterly / Interim Statement
technotrans SE: technotrans confirms forecast for 2019
06.08.2019 / 06:59
The issuer is solely responsible for the content of this announcement.
- Temporary impairments at gwk
- Board of Management expects significantly stronger second half of the year
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- Revenue in the growth markets shows a double-digit increase
Sassenberg, August 6, 2019 - Despite growing challenges, technotrans SE largely continued its successful growth course in the first half of 2019. Except for gwk Gesellschaft Wärme Kältetechnik mbH, all divisions developed according to plan. Temporary impairments in connection with gwk in Meinerzhagen caused revenue to decline by 4.4 percent to EUR 102.6 million. Earnings before interest and taxes (EBIT) fell by 55 percent to EUR 4.1 million. The figures, which were below plan, are to be compensated for in the second half of the year. The Board of Management confirmed its forecast for the year.
"The first half of the year was particularly affected by a sharp decline in revenue and earnings at gwk, which we will be able to make up in the further course of the financial year," says Dirk Engel, Spokesman of the Board of Management of technotrans SE. Adjusted for these temporary effects, revenue for the technotrans Group rose by five percent in the period under review as expected. Net profit fell by 58 percent to EUR 2.7 million in the first half of the year. Free cash flow remained positive at EUR 1.1 million (previous year: EUR 1.5 million) despite increased investments, including the construction of the new termotek location in Baden-Baden.
As already mentioned in the report on the first quarter, the business performance at gwk, on the one hand, was attributable to the investment restraint in the automotive-related plastics processing industry. On the other hand, the introduction of a new ERP system in the second quarter of the year caused temporary revenue shifts and productivity losses at gwk in Meinerzhagen.
"These influences were of a temporary nature. We have already taken effective measures to compensate for this temporary dent in the remaining course of the year," emphasizes Engel. In recent months, gwk's incoming orders have improved significantly, in particular due to new contracts outside the automotive industry. On the basis of the renewed increase in orders, the Board of Management expects business to improve significantly in the second half of the year. The new ERP system introduced at the Meinerzhagen site represents an important milestone in gwk's integration process and establishes the basis for a future improvement in productivity and efficiency.
Growth markets exceed expectations
Except for gwk, the Technology segment developed in line with planning. Once again, the development in the growth markets was particularly pleasing, with revenue increasing at a clearly double-digit rate. However, successful growth in the areas of electromobility, EUV technology and scanner technology could not fully compensate for the adverse effects in the plastics processing industry. Revenue in the Technology segment fell by 6.6 percent to EUR 73.3 million. The operating result (EBIT) amounted to minus EUR 0.1 million after EUR 4.5 million in the same period of the previous year. The corresponding segment return was minus 0.2 percent (previous year: 5.7 percent).
The Services segment increased its revenue by 1.5 percent to EUR 29.3 million. In addition to a stable revenue contribution from the printing industry, the laser/tooling industries and the growth markets also contributed to the robust development, which compensated for the weakness in the automotive-related plastics industry. Activities in Technical Documentation remained stable at the previous year's level. With an EBIT of EUR 4.2 million (previous year: EUR 4.6 million), solid earnings were achieved. The segment return of 14.5 percent was in line with expectations (previous year: 16.0 percent).
Board of Management confirms forecast
"The technotrans growth story is intact. Based on an overall stable OEM business as well as a solid order backlog and further rising business in the growth markets, we will achieve our targets set for 2019," emphasizes Engel. For the current financial year, the Board of Management continues to expect revenue in the range of EUR 218 to 226 million. The operating profit (EBIT) is expected within a range of EUR 12.0 to 16.0 million. Free cash flow is expected to remain positive.
The Board of Management also confirms the medium-term strategy of expanding the technotrans Group to a revenue of EUR 300 million over the next three years through organic growth and further strategic acquisitions. In the medium term, the company continues to aim for a double-digit EBIT margin.
For further information please visit https://www.technotrans.de
About technotrans SE:
|technotrans is an internationally operating technology company and a leading systems supplier of industrial applications in the area of fluid management. The core skills of the group comprise technological solutions for cooling and temperature control, filtration and separation as well as for pumping and spraying of fluids.
technotrans technology is used in the printing industry, the plastics processing industry, the laser and machine tool industry, electromobility, medical and scanning technology, EUV semiconductor technology and other markets.
The business model comprises two reporting segments: The Technology segment covers all products and systems that are developed and manufactured at the production plants in Germany, the US and China. The Services segment completes the product range of the technotrans Group with a comprehensive portfolio of services such as installation and maintenance, repairs, spare parts and Technical Documentation. With 19 locations, technotrans has a presence in all major markets worldwide.
The strategy of the Group of companies is to increase the value of the company over the long term through sustained revenue and earnings growth. Through technological innovations and targeted acquisitions, the Group of companies is steadily opening up new sales markets and increases its market penetration.
technotrans is listed in the Prime Standard (ISIN: DE000A0XYGA7 / WKN: A0X YGA) and employs around 1,450 people worldwide. It achieved consolidated revenue of EUR 216.3 million in the 2018 financial year.
This communication contains statements on the future development of the technotrans Group. They reflect the present views of the management of technotrans SE and are based on corresponding plans, estimates and expectations. We point out that the statements are subject to certain risks and uncertainties which could mean that the actual results differ considerably from those expected.
06.08.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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