Ringmetall continues to improve earnings quality in the third quarter

DGAP-News: Ringmetall Aktiengesellschaft / Key word(s): 9-month figures/Quarterly / Interim Statement

27.11.2017 / 07:30
The issuer is solely responsible for the content of this announcement.

Ringmetall continues to improve earnings quality in the third quarter

- Group revenues in the first nine months increase by 9.3 percent to EUR 79.2 million
- EBT grows accelerated by 11.9 percent to EUR 5.0 million
- Revenues in the Industrial Packaging division increase by 13.4 percent to EUR 68.3 million
- Again significant improvement in earnings in the Industrial Handling division

Munich, 27 November 2017 - Ringmetall AG (ISIN: DE0006001902), a leading international specialist in the packaging industry, again grew significantly in the third quarter of 2017. Not only was revenues growth again at a very high level. In terms of earnings, too, the company can continue to grow disproportionately.

In the first nine months of the fiscal year, Group revenues rose by 9.3 percent to EUR 79.2 million, with above-average growth (9m 2016: EUR 72.4 m). The reason for this was not only the continuously increasing demand but also the overall rise in steel prices. The latter resulted accordingly in a lower gross profit margin of 45.6 percent (9M 2016: 47.1%), which is based on a gross profit of EUR 36.1 million (9M 2016: EUR 34.1 m). The significant fluctuations in the foreign exchange market - especially in the case of the US Dollar, the British Pound and the Turkish Lira - still had a dampening effect on the development of earnings.

Accordingly, earnings before interest, taxes, depreciation and amortization (EBITDA) increased by only 2.8 percent to EUR 9.6 million (9M 2016: EUR 9.3 m), leading to a decline in the EBITDA margin to 12.1 percent (9M 2016: 12.9%). However, as a result of significantly reduced liabilities, earnings before tax (EBT) increased disproportionately stronger by 11.9 per cent to 5.0 million euros (9M 2016: EUR 4.5 m).

"Currently, the demand for our products is so high that we regularly have to drive special shifts in our plants," says Christoph Petri, CEO of Ringmetall AG. "Against this background we can live with the fact that steel prices and two foreign currencies that are important to our business continue to be to our detriment. However, we are currently seeing a weakening of these negative trends in the fourth quarter. A normalization of the situation should therefore not be too long in coming. "

A regional analysis of the revenues development shows that demand is very robust overall, both in the core markets of Germany and the USA, as well as in the European markets. Revenues in the growth market of China also continue to develop promisingly, and are continuing to approach the level of breakeven expected for the coming year. The Management Board continues to assess with reluctance the worsening situation in Turkey. In the past quarter, steps were therefore taken at the Turkish subsidiary to reduce future risks resulting from further deterioration of the situation, while at the same time being able to seize potential market opportunities as the economic parameters of the region continue to improve.

The key performance indicators for the first nine months of 2017 are as follows:

in EUR '000 9M 2017 9M 2016 Deviation
Group revenues 79,152 72,419 9.3%
Gross profit 36,110 34,096 5.9%
Gross margin 45.6% 47.1%  
EBITDA 9,602 9,342 2.8%
EBITDA margin 12.1% 12.9%  
EBIT 5,917 5,510 7.4%
EBIT margin 7.5% 7.6%  
EBT 5,047 4,509 11.9%
EBT margin 6.4% 6.2%  

* The comparative figures in 9M 2016 have been adjusted to reflect the legal changes under the Accounting Directive Implementation Act.

Revenues in the Industrial Packaging division increased by 13.4 percent to EUR 68.3 million in the first nine months of 2017 (9M 2016: EUR 60.3 m). However, the below-average increase in gross profit and the currency effects described resulted in an EBITDA of EUR 9.6 million, which was slightly below the previous year's level (9M 2016: EUR 9.7 m).

The Industrial Handling division once again profited significantly from the strategic realignment, which envisages a reduction in sales of trading products and an increase in sales of own products. Accordingly, sales declined by 10.9 percent to EUR 10.8 million compared to the same period of the previous year (9M 2016: EUR 12.2 m). However, the segment's EBITDA once again increased significantly, rising by 49.7 percent to EUR 1.0 million (9M 2016: EUR 0.7 m).

For the fourth quarter, the company's Management Board expects the company to continue its positive development, thus maintaining the range of expectations for business development for the year as a whole, which has been communicated so far. Further information on the Ringmetall Group and its affiliated subsidiaries can be found at www.ringmetall.de.


Ingo Middelmenne
Investor Relations
Ringmetall AG
Phone: +49 (0)89 45 220 98 12
Mobile: +49 (0)174 9091190
Email: 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.

27.11.2017 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.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de

show this