Rosenbauer International AG:
Rosenbauer Group starts 2019 with ongoing dynamic incoming orders
* Revenues rise in first quarter to Eur 175.8 million, EBIT is Eur 2.1 million
* Incoming orders clearly top previous year's figure at Eur 338.1 million
* Despite slower economic growth, management is optimistic full order books should protect the industry
|GROUP KEY FIGURES||1/2018||1/2019|
|Net profit for the period||Eur million||0.8||0.6|
|Cash flow from operating activities||Eur million||-19.9||-56.6|
|Equity in % of total assets|| ||33.5%||27.8%|
|Earnings per share||Eur||-0.3||-0.3|
|Headcount as of March 31|| ||3,490||3,690|
|Order backlog as of March 31||Eur million||933.8||1,219.2|
The Rosenbauer Group posted ongoing dynamic incoming orders in the first quarter of 2019. With a total of Eur 338.1 million, new orders were significantly higher than the corresponding figure from the previous year (1-3/2018: Eur 236.2 million). Consolidated revenues rose year-on-year from Eur 162.4 million to Eur 175.8 million (+8.3%). Deliveries to some Middle Eastern countries and Asia decreased, whereas Europe, North America and Stationary Fire Protection reported higher volumes. EBIT also rose to Eur 2.1 million (1-3/2018: Eur 1.1 million), almost doubling. Against this backdrop, the Rosenbauer Executive Board is optimistic for the year as a whole, with full order books not only providing sufficient visibility on the market, but also rendering the group of companies resilient with regard to the slowing economy.Revenues and result of operations
Global economic growth continued to slow in the first three months of 2019. The International Monetary Fund (IMF) took current production data from industry and the survey of purchasing managers as grounds to again downscale the economic forecast it had already lowered in January and reduced it from 3.6% to 3.3% for this year. The global firefighting industry generally lags economic performance and reported unchanged, robust demand in this environment.
The Rosenbauer Group generated total revenues of Eur 175.8 million in the first quarter of 2019 (1-3/2018: Eur 162.4 million). These are currently divided across the sales areas as follows: 34% in the CEEU area, 9% in the NISA area, 8% in the MENA area, 11% in the APAC area, 35% in the NOMA area, and 3% in the Stationary Fire Protection segment. As shown from past experience, the first three months of a year are the weakest quarter in terms of revenues and earnings, because the majority of deliveries are made in the second half of the year.
In accordance with consolidated revenues, EBIT rose to Eur 2.1 million (1-3/2018: Eur 1.1 million). Increased production output with a high inventory of finished goods and works in progress and the associated better coverage of fixed costs made the primary contributions to this. As a consequence of a negative financial result, consolidated EBIT for the reporting period amounted to Eur 0.7 million (1-3/2018: Eur 0.9 million).
Incoming orders developed extremely dynamically in the first three months at Eur 338.1 million (1-3/2018: Eur 236.2 million). By far the strongest year-on-year growth was reported by the Middle East, continuing its recovery. The order backlog was Eur 1,219.2 million (1-3/2019: Eur 933.8 million).Financial and net assets position
Due to the high order backlog and strong capacity utilization, the structure of the statement of financial position is showing a high trade working capital at the end of the quarter. Total assets increased year-on-year to Eur 849.4 million (March 31, 2018: Eur 673.0 million), which can be attributed in particular to the higher current assets compared with the balance sheet date of December 31, 2018.
Inventories and current receivables are reporting the biggest changes, with inventories rising to Eur 430.0 million (March 31, 2018: Eur 281.8 million). Current receivables were above the previous year at Eur 213.9 million (March 31, 2018: Eur 173.9 million).
The Group's net debt (the net amount of interest-bearing liabilities less cash and cash equivalents and securities) increased year-on-year to Eur 293.3 million (March 31, 2018: Eur 211.3 million). Owing to the high level of trade working capital - due to the significant increase in inventories - the intra-year cash flow from operating activities was still negative at Eur -56.6 million (1-3/2018: Eur -19.9 million). Outlook
The IMF recently again reduced its global growth forecast. International trade conflicts, Brexit and a weakened eurozone are slowing trade. Next year, growth should therefore stabilize and again reach the 2018 level, when the global economy was able to move up by 3.6%.
As shown from past experience, the firefighting industry follows the general economy at a delay of several months. Demand is robust and, not least thanks to full order books, the sector is holding its ground despite slowing economic growth. A consistently vital international project landscape should also support further market growth and prolong the successful development of the sector. In particular the Middle East, Europe and Asia should expand their volume.