DGAP-News: technotrans SE: economic slowdown hampers business development

2019. május 07., kedd, 07:49





DGAP-News: technotrans SE / Key word(s): Quarterly / Interim Statement


technotrans SE: economic slowdown hampers business development


07.05.2019 / 07:49



The issuer is solely responsible for the content of this announcement.



Quarterly Communication




- Consolidated revenue for first quarter moderately below expectations


- Increased cost base eats into profit


- Positive outlook for the growth markets confirmed


- Forecast for the full year adjusted



Sassenberg, May 7, 2019 - The weakening global economy and continuing geopolitical uncertainty held back the business development of the technotrans Group in Q1 2019 more than expected. Consolidated revenue came in lower than expected, and was down two percent year on year at EUR 53.1 million. Operating profit (EBIT) for the technotrans Group (consolidated EBIT) declined by 26 percent to EUR 3.3 million. technotrans has adjusted expectations for consolidated revenue and consolidated EBIT for the current financial year to reflect the prevailing economic environment. The Board of Management is stepping up the measures kicked off in 2018 to improve profitability.



"The economic slowdown continued in the first quarter and was felt by technotrans particularly in a decline in revenue in the auto-relatedplastics processing industry," commented Dirk Engel, Chief Executive Officer of technotrans SE. By contrast, the growth markets made a very good start to the financial year. Especially in the area of electric mobility, a large number of new projects were acquired. The growth trajectory also continued in the laser and machine tool industry. Activities in the printing industry as well as service business in the Technical Documentation area developed as expected.



However these positive effects did not yet quite suffice to compensate for investment restraint in the plastics processing industry. Revenue for the Technology segment fell 3.9 percent compared with the prior-year quarter, to EUR 38.1 million. By contrast, the Services segment put in a steady performance with revenue growth of 3.5 percent to EUR 15.0 million in the period under review. Revenue for the technotrans Group as a whole decreased by two percent to EUR 53.1 million.



The cost base that is geared towards further growth and the corresponding capacity levels weighed on profit and profit margins in the first quarter. Consolidated earnings before interest and taxes (EBIT) fell to EUR 3.3 million. The EBIT margin for the Group reached 6.3 percent, compared with 8.4 percent in the previous year. In the Technology segment, the rate of return came to 2.9 percent; the Services segment achieved a figure of 15.0 percent. The technotrans Group"s net income fell by 30 percent to EUR 2.2 million.



Forecast adjusted



In view of the continuing slowdown in economic growth and the business performance in the first quarter, the Board of Management of technotrans SE is adjusting its forecast for consolidated revenue and consolidated profit for the financial year in progress.



The management will resolutely adhere to a clear growth strategy and now expects consolidated revenue in the order of EUR 218 to 226 million (previously: EUR 224 to 232 million). The planned range for the consolidated operating profit (EBIT) is EUR 12.0 to 16.0 million (previously: EUR 17.5 to 19.0 million). The expected EBIT margin is in the range of 5.5 to 7.0 percent. As before, the Board of Management expects a positive free cash flow for the current financial year.



"The update to the forecast has been necessitated by the continuing weak development in orders from the plastics processing industry and the unfavourable product mix that has resulted from this," explained Engel. By contrast, the Board of Management remains confident about the future prospects for the growth markets as well as the laser and machine tool industry. A healthy level of orders as well as fresh revenue potential currently confirm the growth expectations for the current financial year in those areas.



The Board of Management has maintained and broadened the measures it introduced in the past financial year to boost profitability and efficiency. These create a basis on which to return soon to the growth pathway that has been followed successfully in recent years.



The Annual General Meeting of technotrans SE will take place on May 10 in the Münsterland Hall. Among other matters the meeting of shareholders will decide on the new line-up of the Supervisory Board and the distribution of the dividend payment of EUR 0.88.



For further information, visit: http://www.technotrans.de



About technotrans SE:




technotrans is a technology company and leading systems supplier of industrial applications in the area of fluid management. The core skills of the Group of companies comprise technological solutions for cooling and temperature control, filtration, handling, measuring and metering.


technotrans technology is used in the printing industry, plastics processing industry, laser and machine tool industry as well as in other markets such as medical and scanner technology, and also electric mobility.


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 USA 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, parts and Technical Documentation. With 19 locations, technotrans has a presence in all important 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 increasing 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.

 

Note



This communication contains statements on the future development of the technotrans Group. These reflect the present views of the management of technotrans SE and are based on the 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.







Contact for journalists: Contact for publishers" representatives:
Nils Dietrich

Sputnik GmbH

Press and Public Relations

Hafenweg 9

48155 Münster

Tel.: +49 (0)251 625561-25

Fax: +49 (0)251 625561-19
dietrich@sputnik-agentur.de
www.sputnik-agentur.de
Frank Dernesch

Investor Relations

technotrans SE

Robert-Linnemann-Strasse 17

48336 Sassenberg

Tel.: +49 (0)2583 301-1868

Fax: +49 (0)2583 301-1054
frank.dernesch@technotrans.de
www.technotrans.de

 














07.05.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Language: English
Company: technotrans SE

Robert-Linnemann-Str. 17

48336 Sassenberg

Germany
Phone: +49 (0)2583 - 301 - 1000
Fax: +49 (0)2583 - 301 - 1030
E-mail: info@technotrans.de
Internet: http://www.technotrans.de
ISIN: DE000A0XYGA7
WKN: A0XYGA
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange
EQS News ID: 807847





 
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807847  07.05.2019 



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