Ringmetall shows dynamic operating growth in the first half year

- Group revenues in the first half-year rise by 9.7 percent to EUR 52.9 million
- EBITDA of EUR 7.1 million was characterized by steel price increases and currency effects
- EBT rises by 10.6 percent to EUR 4.3 million
- Industrial Handling division with a significant increase in earnings

Munich, 30 August 2017 - Ringmetall AG (ISIN: DE0006001902), a leading international specialist in the packaging industry, continued to grow dynamically in the first half of 2017. On the basis of the provisional figures on business performance in the first half of the year 2017, Group revenues rose by 9.7 percent to EUR 52.9 million (H1 2016: EUR 48.2 million).

As in the first quarter, the gross profit rose by 5.9 percent to EUR 23.1 million (H1 2016: EUR 21.8 million) in the first half of the year due to the steel price related increase in material expenses. The gross profit margin was therefore slightly down at 43.6 percent (H1 2016: 45.1 percent). Significant fluctuations in the foreign exchange market also had a negative impact on earnings. Accordingly, earnings before interest, taxes, depreciation and amortization (EBITDA) fell to EUR 7.1 million, compared with EUR 7.0 million in the previous year.

"The rising steel price and the sharp rise in the euro against the US dollar and the Turkish Lira in the short term have a very negative effect on our profit and margin development," said Christoph Petri, Spokesman of the Management Board. "This is all the more unfortunate when one considers our strong operational development in Germany and the USA. At the same time, however, we were able to achieve a disproportionate rise in pre-tax earnings as a result of lower depreciation and improved financial results. "

In addition to a very positive operating performance in the core markets of Germany and the US, revenues in the Spanish and Chinese markets also improved better than expected. Furthermore, In the past quarter, the management team was strengthened in China. Accordingly, the company expects a positive contribution from the Chinese subsidiary for the first time in the coming year. The Turkish market fell short of expectations, due to the general political development and exchange rate effects. The company will therefore closely monitor further developments in the Turkish market.

The key business performance figures for the first half-year of 2017 are listed below:

EUR (thousands)	H1 2017	H1 2016	Deviation
Sales revenues	52,935	48,237	9.7%
Gross profit	23,055	21,778*	5.9%
Gross profit margin	43.6%	45.1%*
EBITDA	7,096	7,027	1.0%
EBITDA margin	13.4%	14.6%
EBIT	4,744	4,468	6.2%
EBIT margin	9.0%	9.3%
EBT	4,295	3,884	10.6%
EBT margin	8.1%	8.1%

 

*The comparative figures in H1 2016 have been adjusted in order to take account of the legal changes in the course of the Accounting Directive Implementation Act.

In the Industrial Packaging business segment, sales revenues in the first half-year rose by 12.8 percent to EUR 45.3 million (H1 2016: EUR 40.2 million). The division's EBITDA declined by EUR 6.6 million (H1 2016: EUR 7.0 million) as a result of higher, steel price related material costs and the currency effects described.

The Industrial Handling business segment continued to benefit from the investments in proprietary products and was again on the upswing in the second quarter. Sales revenues in the first half of the year were down to 7.6 million euros (H1 2016: 8.0 million euros). However, the division's EBITDA doubled to EUR 0.8 million (H1 2016: EUR 0.4 million). For the second half of the year, a further improvement in margins is also emerging on the basis of the previous business development in the third quarter.

Against the backdrop of the current market developments in general, as well as the steel price and exchange rate developments in particular, the Management Board expects a less dynamic corporate development in the second half of 2017. Accordingly, the Management Board sticks to the previously communicated revenues and earnings outlook for the current financial year. In addition, the acquisition of clamping ring producer Latza in the third quarter will have a positive effect, which will be consolidated for the first time as of August 1, 2017.

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 around EUR 100 million per year.