DGAP-News: Stabilus S.A.: Preliminary figures show a positive trend in Q4 FY2019, STAR 2025 long-term forecast confirmed

CORPORATE NEWS

Stabilus S.A.: Preliminary figures show a positive trend in Q4 FY2019, STAR 2025 long-term forecast confirmed

- Revenues in Q4 FY2019 +6.4% to EUR 245.6 million, according to preliminary figures; Adjusted EBIT Q4 FY2019 +6.8% to EUR 39.1 million (adjusted EBIT margin 15.9%)

- Forecast for FY2019 fulfilled: Revenues in FY2019 -1.2% to EUR 951.3 million and adjusted EBIT margin 15.0%; Adjusted EBIT^[1] FY2019 -4.4% to EUR 142.7 million

- FY2019 result reaches EUR 80.9 million compared to EUR 105.4 million in previous year (FY2018 result contained a non-recurring positive tax effect of EUR 11.1 million.)

- Free cash flow before acquisitions (adj. FCF^[1]) in FY2019 totals EUR 89.9 million, compared to EUR 100.2 million in the previous year

- Revenue growth of 2 percent to 4 percent to between EUR 970 million and EUR 990 million expected for fiscal year 2020 with an adjusted EBIT^[1] margin of around 15.0%; STAR 2025 long-term forecast confirmed

Luxembourg/Koblenz, November 15, 2019 - According to preliminary figures, Stabilus S.A. (ISIN: LU1066226637), one of the world's leading suppliers of gas springs, damping solutions and electromechanical drives for motion control, closed its fiscal year 2019, which ended September 30, with a strong final quarter and met its full-year forecast.

In the fourth quarter of fiscal year 2019, Stabilus was able to increase its revenues by 6.4 percent to EUR 245.6 million (Q4 FY2018: EUR 230.8 million) in a challenging market environment, according to preliminary figures. Adjusted for the USD/EUR currency effect and the revenue contributions of the initial consolidation of newly acquired companies in the industrial business in FY2019, Group revenues increased by 1.7 percent. Adjusted EBIT^[1] increased by 6.8 percent to EUR 39.1 million (Q4 FY2018: EUR 36.6 million), which corresponds to an adjusted EBIT^[1] margin of 15.9 percent (Q4 FY2018: 15.9 percent).

For the full fiscal year 2019, according to preliminary figures, the Group recorded a slight decline in revenues of 1.2 percent to EUR 951.3 million (FY2018: EUR 962.6 million). Adjusted for the USD/EUR currency effect and acquisitions, Group revenues declined by 4.3 percent.

Downturn in automobile production weighs on Europe and China

In the Europe region, revenues in FY2019 dipped by 1.9 percent to EUR 482.1 million, mainly due to a weaker automotive market. In the NAFTA region, revenues rose by 2.6 percent compared to the previous year to EUR 357.3 million, with a supportive effect by the strong US dollar (average exchange rate of USD 1.13/EUR in FY2019 vs. USD 1.19/EUR in FY2018). Adjusted for the USD/EUR currency effect, NAFTA's revenues performance amounted to -2.8 percent in FY2019. In Asia/Pacific and RoW (Rest of World), the company reported a decline in revenues of 9.1 percent compared to the previous year to EUR 111.9 million. This was mainly due to the sharp drop in the light vehicle^[2] production in China.

Industrial business offsets development in the automotive segment

Stabilus recorded an increase in revenues in its industrial business in fiscal year 2019, thus largely offsetting the decline in the automotive business. The industrial business accounted for 39 percent of revenues in FY2019, with revenues up 5.1 percent to 369.9 million euros from EUR 352.0 million euros in the previous year. Adjusted for the USD/EUR currency effect and acquisitions, revenue growth was 0.5 percent. Stabilus recorded strong growth in the solar damper as well as production and construction technology segment. In the automotive segment, which accounted for 61 percent of total revenues in fiscal year 2019, the company's revenues decreased by 4.8 percent to EUR 581.4 million (FY2018: EUR 610.6 million). Adjusted for the USD/EUR currency effect, revenues fell 6.9 percent. The automotive sector suffered in particular from weak automotive production in Europe and China.

Adjusted EBIT margin at 15.0 percent

According to preliminary figures, adjusted operating profit (adjusted EBIT^[1]) decreased by 4.4 percent to EUR 142.7 million in FY2019, compared to EUR 149.3 million in the previous year. This corresponds to an adjusted EBIT^[1] margin of 15.0 percent, compared to 15.5 percent in the same period of the previous year.

Accordingly, Stabilus has met its latest forecast - both pertaining to the revenue and adjusted EBIT margin - for fiscal year 2019, which was issued with the publication of the 9M FY2019 figures.

Net profit in FY2019 amounted to EUR 80.9 million, compared to EUR 105.4 million in the previous year (FY2018 result contained a non-recurring positive tax effect of EUR 11.1 million.). Free cash flow before acquisitions (adj. FCF^[1]) was EUR 89.9 million, compared to EUR 100.2 million in the previous year.

Dr. Michael Büchsner, CEO of Stabilus since October 1, 2019, said: "In a challenging market environment, Stabilus ended its fiscal year 2019 with a fourth quarter characterized by renewed growth and achieved its annual targets. In light of the slowdown in the global automotive industry in the past fiscal year, we benefit from the diversification of our business model via the industrial business, which enabled us to compensate for the decline in the automotive business to a large extent. The company's fundamental growth drivers remain intact in the long term and, together with Stabilus' innovative strength, offer attractive growth potential in the coming years. With STAR 2025, we have prepared the ground to unlock this potential and have anchored this plan throughout the company. Against this background, we confirm our long-term revenue forecast within the framework of STAR 2025 and expect positive revenue growth with stable profitability levels for the current fiscal year 2020."

Forecast for fiscal year 2020 foresees profitable growth

For fiscal year 2020, Stabilus expects revenue growth of around 2 percent to 4 percent to approximately EUR 970 million to EUR 990 million (assuming a constant USD/EUR rate of 1.13 compared to the previous year and a currently expected global light vehicle^[2] production of 88.3 million in fiscal year 2020) and an adjusted EBIT^[1] margin of approximately 15.0 percent.

Long-term STAR 2025 forecast confirmed

Stabilus also confirms its STAR 2025 long-term forecast, published in 2017, which expects organic annual revenue growth of an average of 6 percent until fiscal 2025. From the point of view of the Management Board and Supervisory Board, the forecast is achievable despite the unexpectedly weak markets in 2018 and 2019 based on the following: Realization of the current expectations for global GDP growth of an average of 2.8 percent to 3.0 percent in calendar years 2021 to 2025 and the recovery of the global light vehicle^[2] production to a currently expected level of 91.8 million vehicles in calendar year 2021, increasing to a level of 101.7 million vehicles in calendar year 2025.

An accompanying presentation on the preliminary figures for fiscal year 2019 can be downloaded from the company website at Investors / Financial Reports & Presentations 2019. The final figures and the annual report for the 2019 financial year will be published on December 13, 2019.

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^[1] Cf. the definition/calculation of KPI's adjusted EBIT and free cash flow before acquisitions (adj. FCF) in our current financial reports and earnings presentations, e.g. in our presentation of the preliminary FY2019 results, p.4, 26-30, on the company website at Investors / Financial Reports & Presentations 2019.

^[2] Light vehicles = passenger cars and light commercial vehicles (<6t).

 

Investor contact:

Andreas Schröder

Tel.: +352 286 770 21

E-Mail: [email protected]

Press Contact:

Tobias Eberle

Tel.: +49 69 794090 24

E-Mail: [email protected]

Charles Barker Corporate Communications

About Stabilus

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. According to preliminary figures, Stabilus has reported revenues of EUR 951.3 million in the 2019 fiscal year. Stabilus has a global production network encompassing plants in eleven 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.

Important Notice

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.