EANS-News: Rosenbauer International AG / Quarterly results 3/2018

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Quarterly Report

Leonding -

  • Sales show solid development in first three quarters of 2018 at EUR 552.0 million
  • EBIT increases to EUR 17.0 million
  • Later recognition of sales and profits due to new IFRS 15 accounting standard
  • Full order books point to strong finish, management confirms sales and earnings target for the full year

______________________________________________________________________________ |GROUP_FIGURES__|______________|_______1-9/2017|_______1-9/2018|Without_IFRS_15| |Revenues_______|in_EUR_million|__________604.5|__________552.0|__________607.7| |EBIT___________|in_EUR_million|___________14.8|___________17.0|___________25.5| |Result for the |in EUR million| 11.1| 10.6| 16.9| |period_________|______________|_______________|_______________|_______________| |Cash flow from | | | | | |operating |in EUR million| -50.7| -83.4| -83.4| |activities_____|______________|_______________|_______________|_______________| |Equity in % of | | | | | |the balance | | 34.0%| 29.7%| 31.3%| |sheet_total____|______________|_______________|_______________|_______________| |Earnings per | EUR | 0.5| 0.6| 1.5| |share__________|______________|_______________|_______________|_______________| |Number of | | | | | |employees as at| | 3,374| 3,546| 3,546| |30_September___|______________|_______________|_______________|_______________| |Order backlog | | | | | |as at 30 |in EUR million| 803.4| 1,093.6| 1,093.6| |September______|______________|_______________|_______________|_______________|

The growth of the global economy continued to increase steadily in the first nine months of 2018; however, this tempo has now decelerated to last year's level. The global fire service industry profited from this positive economic climate and is developing in a stable manner. Demand is mainly growing in the countries with continuous procurement and/or an increased need for security after natural disasters or terrorist attacks. Sales and earnings situation The Rosenbauer Group generated group sales of EUR 552.0 million in the first three quarters of 2018 (1-9/2017: EUR 604.5 million). This decline can be attributed to using IFRS 15 for the first time, with which the Rosenbauer Group converted from period-of-time related revenue recognition to point-of-time related revenue recognition in the current financial year. This means that, unlike in the past, sales are no longer to be recorded according to the completion status of the construction contracts, but only after the product has been delivered to the customer. Deliveries to several Asian and Central and Eastern European countries declined between January and September of this year, while the Middle East, Western Europe and Stationary Fire Protection all reported significantly higher volumes than in the same period of the previous year. Group sales are currently divided among the various sales regions as follows: 31% CEEU Area, 12% NISA Area, 13% MENA Area, 13% APAC Area, 28% NOMA Area and 3% for the Stationary Fire Protection sector. In the first three quarters, EBIT was clearly above the previous year's level at EUR 17.0 million (1-9/2017: EUR 14.8 million). This was mainly due to an increase in production output with a high inventory of finished and unfinished products and, consequently, a very good coverage of fixed costs. The financial result shows a loss of EUR -4.9 million (1-9 2017: EUR -0.7 million), which, in addition to the interest expenses incurred as a result of borrowing, also includes book value losses related to the effective date from hedge transactions to the US dollar. Group EBT in the reporting period amounted to EUR 11.7 million (1-9/2017: EUR 13.9 million). However, incoming orders continued to grow strongly in the first nine months at EUR 789.9 million (1-9/2017: EUR 654.4 million). The order backlog as at 30 September 2018 amounted to EUR 1,093.6 million, thus reaching a new historical high (30 September 2017: EUR 803.4 million). With this order backlog, the Rosenbauer Group has utilised the capacity of the production facilities to a satisfactory level and given good insight into the coming year 2019. Financial and asset situation Depending on the industry, the balance sheet structure is characterised by high working capital over the course of the year. This is triggered by several months of lead time for the vehicles in production. The high balance sheet total of EUR 756.3 million (30 September 2017: EUR 689.7 million) is mainly attributable to higher current assets compared to the reporting date of 31 December 2017. As part of the switch to IFRS 15, all construction contracts ceased entirely (30 September 2017: EUR 102.8 million), while supplies increased to EUR 366.3 million (30 September 2017: EUR 208.4 million). Current assets amounted to EUR 569.7 million at the end of the reporting period (30 September 2017: EUR 507.9 million). Current receivables of EUR 185.7 million (30 September 2017: EUR 181.5 million) were above the level of the previous year. The Group's net debt (balance of interest-bearing liabilities less cash and securities) increased to EUR293.7 million compared to the same period of the previous year (30 September 2017: EUR 254.0 million). Due to the significant working capital - as a result of the high level of inventories - the cash flow from operating activities during the year is negative at EUR -83.4 million (1-9/2017: EUR -50.7 million). Forecast The IMF recently modified its growth forecast for the global economy, lowering it from 3.9 percent to 3.7 percent in 2018 and 2019. With this adjustment, its experts have taken into account the surprisingly cautious activity in several large, developed economies and the negative effects of the punitive tariffs imposed between April and mid-September. At the same time, in light of the increased likelihood of further negative shocks - such as tariffs on cars and car parts - these growth rates also highlight a provisional growth ceiling. Experience has shown that the fire service industry follows general economic development with a gap of several months and should continue to develop in a stable manner. Rosenbauer is closely following developments in the various fire service markets in order to be able to take advantage of sales opportunities at an early stage. Depending on which countries or regions indicate an increased procurement volume, the sales activities will be intensified. To ensure that the business development goals have a solid financial basis, efficiency and cost reduction remain the focus of attention. Despite continued pressure to attain good margins in the developed markets, the Rosenbauer management is aiming at sales of more than EUR 900 million and an EBIT margin of over 5 percent in 2018.

end of announcement euro adhoc

issuer: Rosenbauer International AG
Paschingerstrasse 90
A-4060 Leonding
phone: +43(0)732 6794 568
FAX: +43(0)732 6794 89
mail: ir@rosenbauer.com
WWW: www.rosenbauer.com
ISIN: AT0000922554
indexes: WBI
stockmarkets: Stuttgart, Wien, Berlin
language: English

Digital press kit: http://www.ots.at/pressemappe/2916/aom

Rückfragen & Kontakt:

Rosenbauer International AG
Tiemon Kiesenhofer
Tel.: +43 732 6794 568
e-mail: tiemon.kiesenhofer@rosenbauer.com