EANS-News: Rosenbauer International AG 2017 revenues satisfactory at ? 847.6
million Moderate dividend of ? 1.0 per share proposed
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Corporate news transmitted by euro adhoc with the aim of a Europe-wide
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Annual Reports
Leonding -
* 2017 revenues satisfactory at EUR 847.6 million
* Slump in demand in MENA area pushes EBIT down with further extraordinary
effects
* Moderate dividend of EUR 1.0 per share proposed
* Incoming orders achieve historic high at EUR 970 million, very good capacity
utilization expected in 2018
______________________________________________________________________________
|GROUP KEY FIGURES | | 2016| 2017|
|___________________|_________________|___________________|____________________|
|Revenues | EUR million | 870.8| 847.6|
|___________________|_______EUR_______|___________________|____________________|
|EBIT_______________|___EUR_million___|_______________47.0|________________21.1|
|Net profit for the | EUR million | 34.6| 18.5|
|period_____________|_________________|___________________|____________________|
|Cash flow from | | | |
|operating | EUR million | 83.4| 28.4|
|activities_________|_________________|___________________|____________________|
|Equity in % of | | 37.2%| 38.2%|
|total_assets_______|_________________|___________________|____________________|
|Earnings_per_share_|_______EUR_______|________________3.5|_________________1.1|
|Dividend (Proposal | EUR/share | 1.2| 1.0|
|to_the_AGM)________|_________________|___________________|____________________|
|Number of employees| | 3,375| 3,405|
|as_of_December_31__|_________________|___________________|____________________|
|Order backlog as of| EUR million | 739.7| 882.6|
|December_31________|_________________|___________________|____________________|
The Rosenbauer Group closed the past 2017 financial year with revenues of EUR
847.6 million. Thus, this was at approximately the same level again as the
previous year (2016: EUR 870.8 million). The low oil price at the beginning of
the year and political turmoil resulted in a substantial drop in demand in the
MENA area, which was partially compensated for by deliveries to some Asian,
African and European countries. As a result, EBIT amounted to EUR 21.1 million
(2016: EUR 47.0 million) despite cost-cutting measures and fell short of
expectations. In 2017, incoming orders achieved a historic record high again at
EUR 970 million (2016: EUR 816.8 million), which is expected to result in a very
good capacity utilization for all Group companies in the current year.
Revenues and result of operations
Unlike the global economy, the global firefighting industry only recorded slight
growth in 2017. The strongest sales regions included Europe, North America and
Asia, the biggest single markets were the US, China and Germany. In countries
highly dependent on the price of oil, the demand showed initial recovery in
2017, with the significant increase in oil prices in the second half of the year
also resulting in an improvement in incoming orders.
In this difficult environment, the Rosenbauer Group generated a satisfactory
level of revenues at EUR 847.6 million (2016: EUR 870.6 million). Income was
reduced somewhat on account of deliveries to the Arab world remaining at a
relatively low level the whole year. The NISA (Northern Europe, Iberia, South
America and Africa) and APAC (Asia-Pacific) areas performed better, with
revenues up by 7% for both of them.
In 2017, EBIT was significantly down on the previous year at EUR 21.1 million
(2016: EUR 47.0 million). This sharp decline in earnings is due mainly to the
decreased delivery volume in 2017 as a result of the low price of oil and
ongoing conflicts in various parts of the world, leading to weak capacity
utilization in some manufacturing areas. The trend was counteracted from the
middle of the year by measures to cut costs.
EBIT was also squeezed by the composition of the production program, which was
partially transitioned from profitable large-volume orders to individual orders
with more complex processing. Exchange rate effects and higher start-up costs at
the platform manufacturer Rosenbauer Rovereto likewise compressed earnings. The
reorganization of the staff structure in Austria, the amortization of intangible
assets at Rosenbauer Rovereto, and the discontinuation of a software project
also led to additional expenses
Furthermore, irregularities were detected in the annual financial statements of
Rosenbauer Deutschland. Based on the findings obtained to date in the ongoing
investigations, write-downs on individual receivables of EUR 1.2 million and a
provision for other identified risks of EUR 3.4 million were recognized in the
consolidated financial statements.
The Rosenbauer Group reported record incoming orders of EUR 970 million in the
past financial (2016: EUR 816.8 million). The largest contribution to growth was
made by the NISA area (Northern Europe, Iberia, South America and Africa) with
incoming orders from Holland and England. Including others, an order from the
airport operator Royal Schiphol Group for the delivery of 18 ARFF vehicles worth
around EUR 22 million was secured. US vehicles were still in high demand with an
increase of 10%. The CEEU area (Central and Eastern Europe) - which includes the
German market - is also still performing successfully with growth of 7%. Here
Rosenbauer secured an order to deliver 108 vehicles for the Federal Office of
Civil Protection and Disaster Assistance. There is also an option for the
delivery of a further 198 vehicles between 2018 and 2020.
Financial and asset situation
For reasons specific to the industry, the structure of the statement of
financial position as of the end of the year is characterized by high working
capital. This generally results from the comparatively long turnaround times for
custom-built firefighting vehicles. The financial situation of the Group remains
solid even in times of a difficult market situation. Total assets declined as
against the previous year by 4% and amounted to EUR 625.4 million as of December
31, 2017 (2016: EUR 650.6 million).
Working capital amounted to EUR 189.7 million as of the end of the year (2016:
EUR 189.6 million). Cash was down from EUR 30.2 million to EUR 20.0 million as
of the end of the year on account systematic asset management.
Inventories decreased to EUR 191.2 million as of the end of the year (2016: EUR
199.1 million). Construction contracts were up by 12% on the previous year at
EUR 75.6 million (2016: EUR 67.7 million) on account of high capacity
utilization towards year-end 2017. Current interest-bearing liabilities rose
from EUR 102.4 million to EUR 105.1 million.
Equity increased to EUR 239.2 million as of the end of the year (2016: EUR 242.0
million). As a result of the lower total assets, the equity ratio rose to 38.2%
(2016: 37.2%) and thus was above the long-term target of more than 35%. In 2017,
net debt increased to EUR 184.1 million (2016: EUR 171.3 million) due to lower
cash and higher liabilities. Thus, the gearing ratio climbed to 77.0% (2016:
70.8%).
The net cash flow from operating activities fell to EUR 28.4 million in 2017
(2016: EUR 83.4 million). This development is due to lower earnings and lower
trade payables compared to the previous year.
Dividend
Rosenbauer follows a growth-oriented and sustainable dividend policy that is
consistent with the company's performance. Given the lower EBIT compared to
2016, the Executive Board and the Supervisory Board are therefore proposing a
divided of EUR 1.0 per share (2016: EUR 1.2) to the Annual General Meeting.
Accordingly, the distribution volume for 6.8 million no-par-value shares will be
EUR 6.8 million (2016: EUR 8.2 million). Based on the closing price of EUR 52.6,
this corresponds to a dividend yield of 1.9% (2016: 2.2%).
Outlook
The firefighting industry follows economic developments at a delay of several
months. Demand is defined largely by countries with steady procurement. However,
elevated security awareness following natural or terrorist disasters also leads
to increased investment in firefighting technology and equipment.
A further increase in demand for fire trucks is expected on the North American
market in 2018, which should raise the procurement volume to well above the
long-term average of around 4,000 vehicles. A requirement for this is that the
tax reform passed at the beginning of the year actually stimulates investment in
the country.
The European firefighting market is likewise set to continue its growth in 2018.
Demand has recently increased both in the D-A-CH region (Germany, Austria,
Switzerland) and in some Western European countries. New opportunities could
arise if political plans to invest more in disaster prevention in southern and
eastern Europe go ahead.
Demand for firefighting technology rallied again slightly in the countries of
the Middle East in recent months, hence a slight recovery in procurement volume
is predicted for the year as a whole.
Rosenbauer is optimally positioned worldwide with innovative products and
services. Time and again, it is successfully tapping new markets and expanding
its market position. One example of this is the HEROS-titan fire service helmet,
sales of which doubled over the last five years. Intensified global market
cultivation will also stimulate growth in equipment in 2018. The successful
launch of the ET series can be expected to raise prospects for additional sales
opportunities, especially on markets with high cost pressure. The launch of the
new top PANTHER 8x8 model was a complete success, confirmed by high incoming
orders and a strong order backlog. Furthermore, Rosenbauer is still investing in
its sales organization and product development in order to exploit every growth
opportunity on the world's firefighting markets.
Further inquiry note:
Rosenbauer International AG
Tiemon Kiesenhofer
Tel.: 0043-732-6794-568
end of announcement euro adhoc
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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: Wien, Berlin, Stuttgart
language: English