Ringmetall starts the year with substantial growth in sales and earnings

DGAP-News: Ringmetall Aktiengesellschaft / Key word(s): Quarter Results

05.05.2017 / 07:00
The issuer is solely responsible for the content of this announcement.


- Good order situation and a rise in the steel price lead to a significant increase in sales volumes
 
- Sales revenues in the first quarter rose significantly by 19.2 percent to 26.7 million euros
 
- EBITDA increases by 7.9 percent to EUR 3.2 million

- In-house developments increase demand in the Industrial Handling division

Munich, 5 May 2017 - Ringmetall AG (ISIN: DE0006001902), a leading global specialist in the packaging industry, posted significant sales and earnings growth in the first quarter. In addition to increased demand for the company's products, the sharp rise in the steel price in particular had a positive effect on the company's sales performance.

According to the figures published today on the business developmet in the first quarter of 2017, consolidated sales rose significantly by 19.2 percent to EUR 26.7 million (Q1 2016: EUR 22.4 million). Gross profit increased by 13.6 percent to EUR 11.8 million (Q1 2016: EUR 10.4 million), although the gross profit margin of 44.3 percent was lower than in the previous year (Q1 2016: 46.5 percent). This correspondingly affected all other profit margins. Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to EUR 3.2 million, an increase of 7.9 percent compared to the previous year (Q1 2016: EUR 3.0 million), whereas earnings before interest and taxes (EBIT) of EUR 2.1 million rose slightly stronger by 9.6 percent compared to the previous year (Q1 2016: EUR 1.9 million).

'The first quarter was very successful for us', says Christoph Petri, Spokesman of the Management Board of the Ringmetall Group. 'The rise in sales was largely due to the rise in steel prices. Nevertheless, we have been able to significantly improve our earnings. This is not least a sign that we can raise more and more synergies within the Group.'

The key business performance figures for Q1 2017 are listed below:

EUR (thousands) Q1 2017 Q1 2016 Deviation
Sales revenues 26,663 22,369 19.2%
Gross profit 11,810 10,400* 13.6%
Gross profit margin 44.3% 46.5%*  
EBITDA 3,245 3,008 7.9%
EBITDA margin 12.2% 13.4%  
EBIT 2,060 1,879 9.6%
EBIT margin 7.7% 8.4%  

*The comparative figures in Q1 2016 have been adjusted in order to take account of the legal changes in the course of the Accounting Directive Implementation Act.

Steel price changes were the most pronounced effect on the core business segment of Industrial Packaging. Sales rose by 23.4 percent to EUR 22.7 million (Q1 2016: EUR 18.4 million). The steel price-related effect in sales growth was above ten percentage points. The division's EBITDA improved by 5.7 percent to EUR 3.4 million (Q1 2016: EUR 3.2 million). The German market in particular showed a positive development, where a sharp increase in demand for clamping rings was recorded. Exports to Latin America were also up significantly, where among others Cuba is now supplied with products. However, business in Turkey developed tricky. Thus as expected, sales were down compared to the previous year due to exchange rate effects.

In the Industrial Handling division, investments in self-developed products showed initial success. Accordingly, sales rose by 1.5 percent to EUR 4.0 million (Q1 2016: EUR 3.9 million). EBITDA further recovered to EUR 0.25 million, up 5.4 percent (Q1 2016: EUR 0.24 million). Demand rose particularly in the area of ​​restraint systems for forklift trucks. However, sales of subcontracting products for the agricultural machinery industry also increased. Here stabilizers and clutch systems were the main demand.

'The increased demand in the Industrial Handling Division underlines that we have made the right decision with our increased investment in new products', Christoph Petri explained. 'In addition, we have appointed Mr. Kuhlmann, a very experienced manager, as the new Managing Director of our subsidiary HSM. We therefore assume that the current positive momentum will prove sustainable.'

The Management Board of the Ringmetall Group continues to assess positively the current market environment for company acquisitions. After initial discussions and extensive market surveys, the company expects to successfully complete one or two smaller acquisitions in the current financial year. With regard to the development of the company in the full year, the Management Board adheres to the previously communicated outlook.

Further information about the Ringmetall Group and its affiliated subsidiaries is available at www.ringmetall.de.


Contact:

Ingo Middelmenne
Investor Relations
Ringmetall AG

Phone: +49 (0)89 45 220 98 12
E-mail: middelmenne@ringmetall.de

About Ringmetall Group

Ringmetall is an internationally leading specialist in the packaging industry. The Industrial Packaging business segment offers highly secure gasket and locking systems for the chemical, the petrochemical and the pharmaceutical industry as well as the food industry. The Industrial Handling business segment develops application-optimized vehicle accessory parts for the handling and transport of packaging units. Besides its headquarters in Munich, Ringmetall has worldwide production and sales subsidiaries in Germany, Great Britain, Spain, Italy, Turkey, the Netherlands, as well as in China and the USA. On a global scale, Ringmetall generates revenues of more than EUR 90 million per year.



05.05.2017 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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