Stabilus S.A.: Stabilus publishes results for the third-quarter of FY2020 and updates full-year forecast

CORPORATE NEWS

Stabilus S.A.: Stabilus publishes results for the third-quarter of FY2020 and updates full-year forecast

- Revenues in Q3 at EUR 147.0m, after EUR 241.6m in Q3 FY2019

- Positive adjusted EBIT^[1] in Q3 at EUR 5.7m, after EUR 37.1m in Q3 FYJ2019

- Q3 result at EUR -16.4m (Q3 FY2019: EUR 19.3m) and free cash flow before acquisitions (adj. FCF^[1]) at EUR -6.0m (Q3 FY2019: EUR 31.4m)

- Updated forecast for FY2020 expects revenues of c. EUR 800m and an adjusted EBIT^[1] margin of c. 11 percent.

Luxemburg/Koblenz, August 3, 2020 - Today Stabilus S.A. (ISIN: LU1066226637), one of the world's leading suppliers of gas springs, damping solutions and electromechanical drives for motion control, has published its quarterly statement for the third quarter of FY2020 (which ended on June 30, 2020) as well as an outlook for the full fiscal year 2020.

A comparison with the same quarter of the previous year shows with EUR 147.0 million 39.2 percent lower group revenues in the third quarter of FY2020 (Q3 FY2019: EUR 241.6 million). Following adjustment for currency effects and acquisitions, group revenues declined by 36.7 percent.

Dr. Michael Büchsner, CEO of Stabilus, said: "The COVID-19 pandemic had a significant impact on our results in the third quarter. The current situation shows that the measures we took in the second quarter to make costs more flexible are the right ones. While large parts of our business are affected by the crisis, there are also positive trends. Our Powerise business in Asia has benefited greatly from the introduction of new vehicle models. The diversification of our customer segments in the industrial sector has also protected us from a sharper decline in revenues. The hallmark of Stabilus has always been our robustness and our culture of innovation, and this is also supporting our development now. That is why we are already working on solutions and applications today that are increasingly needed in a world changed by COVID-19."

Mark Wilhelms, CFO of Stabilus, added: "Like almost all companies in the automotive and industrial sectors, the developments and consequences of the COVID-19 pandemic on the real economy, which are unprecedented in recent history, pose significant challenges for Stabilus. We have taken immediate action accordingly. Production capacities will be further adapted to current customer demand with the help of flexible working models. The measures taken in the second quarter to optimize costs and make them more flexible are successfully implemented. With a very moderate debt ratio, Stabilus has a solid balance sheet and is well equipped with the measures taken even in this challenging time. Stabilus was able to maintain operations at all of its main production plants."

APAC benefits from strong development in automotive Powerise

In the EMEA region, revenues in Q3 FY2020 decreased by 37.3 percent to EUR 78.1 million (Q3 FY2019: EUR 124.5 million). This development was due in particular to the weakness of the automotive market as a result of COVID-19. In the Americas region, revenues of EUR 42.3 million were 54.3 percent lower than in the same quarter of the previous year (Q3 FY2019: EUR 92.5 million). Organically^[1], the decline in revenues in the Americas region was 47.5 percent in Q3 FY 2020. In Asia/Pacific, revenues increased by 8.5 percent year-on-year to EUR 26.7 million (Q3 FY2019: EUR 24.6 million). Organic^[1] growth in this region was 10.0 percent in Q3 FY2020. This was particularly due to strong growth in revenues of 60.4 percent in Automotive Powerise compared to the previous year, which was favored by the introduction of new vehicle models from OEMs. In this region, revenues in the Automotive Gas Spring and Industrial divisions were nearly stable in the reporting quarter compared to the same quarter of the previous year.

Industrial business more robust than automotive business thanks to diversification of customer segments

In the Automotive Powerise division, revenues declined by 53.3 percent to EUR 28.7 million in Q3 FY2020 (Q3 FY2019: EUR 61.5 million). Revenues in the Automotive Gas Spring division decreased by 49.5 percent to EUR 42.7 million (Q3 FY2019: EUR 84.6 million). Organically^[1], revenues in these divisions declined by 44.9 percent and 47.3 percent, respectively.

In Q3 FY 2020, the industrial business reported a year-on-year decline in revenues of 20.8 percent to EUR 75.6 million (Q3 FY2019: EUR 84.6 million). Adjusted for currency effects and acquisitions, revenues in this business declined by 21.9 percent. The diversification of the customer segments in the industrial business had a stabilizing effect despite declining revenues. Growth in the e-commerce business as well as in the segments production and construction technology, shop equipment and products for home water carbonation were able to partly offset declines in the other segments.

The industrial business accounted for 51 percent (Q3 FY2019: 40 percent) of Stabilus' total Group revenue in Q3 FY2020, and the two automotive divisions Powerise and Gas Spring accounted for 49 percent (Q3 FY2019: 60 percent).

Positive adjusted EBIT margin of 3.9 percent in the third quarter

Adjusted operating profit (adjusted EBIT^[1]) was positive in Q3 FY2020 and amounted to EUR 5.7 million (Q3 FY2019: 37.1 million). This is equivalent to an adjusted EBIT margin of 3.9 percent after 15.4 percent in the same quarter of the previous year, Q3 FY2019.

In Q3 FY2020, a loss of EUR 16.4 million was reported after a profit of EUR 19.3 million in the same quarter of the previous year, Q3 FY2019. Earnings were adversely affected in particular by one-time, non-cash write-downs on other intangible assets, in particular customer relationships recognized in the balance sheet, amounting to EUR 25.7 million. This is due to the negative impact of the COVID-19 pandemic on the aviation sector, which is suffering from a significantly reduced product demand due to both a decline in aircraft production and a decline in retrofitting existing aircraft.

Free cash flow before acquisitions (adj. FCF^[1]) amounted to EUR -6.0 million, after EUR 31.4 million in Q3 FY2019.

Forecast for FY2020 updated

Stabilus is updating its forecast for the full fiscal year 2020 and now expects revenues of c. EUR 800 million and an adjusted EBIT^[1] margin of c. 11 percent.

The Q3 FY2020 quarterly statement can be downloaded from the company website at Investors / Financial Reports & Presentations 2020.

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^[1] Cf. the definition/calculation of KPIs 'adjusted EBIT', 'free cash flow before acquisitions' (adj. FCF) and 'organic growth' provided in the quarterly statement Q3 FY2020, pp. 3, 6, 9 and 15, on the company website at Investors / Financial Reports & Presentations 2020.

Investor contact:
Andreas Schröder
Tel.: +352 286 770 21
E-Mail: anschroeder@stabilus.com

Press contact:
Peter Steiner
Tel.: +49 69 794090 27
E-Mail: stabilus@charlesbarker.de
Charles Barker Corporate Communications

About Stabilus

As one of the world's leading suppliers of gas springs, damping solutions and electromechanical drives, Stabilus has for eight decades been demonstrating its expertise in the automotive industry and a variety of other sectors. Gas springs, dampers and electromechanical POWERISE drives from Stabilus optimize opening, closing, lifting, lowering and adjusting operations, and also protect against vibrations. Employing a workforce of more than six thousand worldwide, the company has its operational headquarters in Koblenz. Stabilus has reported sales revenues of EUR 951.3 million in the 2019 fiscal year. Stabilus has a global production network encompassing plants in eleven countries. Additionally, the Group maintains regional offices and relations to sales partners in over fifty countries in Europe, North, Central and South America, and in Asia Pacific. Stabilus is listed in the Prime Standard segment of the Frankfurt Stock Exchange and included in the SDAX index.

Important Notice
This press release may contain forward-looking statements based on current assumptions and forecasts made by Stabilus Group management and other information currently available to Stabilus. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here.