Stock exchange announcement pursuant to section 48d(1) Stock Exchange Act 

 Vienna, 27. April 2017 

 -Annual results for 2016 

- Outlook for 2017

- Dividend


Annual results for 2016

The figures in the analysis below are adjusted for deconsolidation effects. In 2016, revenue adjustments amounted to EUR 21.1m (2015: EUR 58.6m) and earnings adjustments were EUR 4.2m (detailed figures on deconsolidation effects are provided below):

  • Consolidated revenue adjusted for deconsolidation effects was EUR 754.4m in 2016, an increase of EUR 22.3m or 3% on the previous year. Frauenthal Automotive reported adjusted revenue of EUR 170.1m, a year-on-year improvement of EUR 9.3m (5.8%). In spite of a marked slowdown in the construction market, Frauenthal Trade recorded adjusted revenue of EUR 584.2, a gain of 2.3% or EUR 13.0m. This was primarily due to the improved performance of the ÖAG brand, while SHT saw a slight fall in revenue. The slow growth in private spending on renovation, as well as public spending cuts continued to have an effect on the Austrian market.
  • Adjusted for deconsolidated companies, the Frauenthal Group’s earnings before interest, tax, depreciation and amortisation (EBITDA) were EUR 33.4m, an increase of EUR 1.5m on 2015. Both the Frauenthal Trade and Frauenthal Automotive divisions contributed to the growth in earnings, with adjusted EBITDA of EUR 17.3m and EUR 18.1m respectively. All of Frauenthal Automotive’s business units (Gnotec, airtanks and U-bolts) reported increased earnings. Frauenthal Trade’s earnings were affected by extraordinary expenses of around EUR 3.5m related to the integration of logistics processes.
  • Equity increased by EUR 6.4m, from EUR 95.3m to EUR 101.8m, primarily as a result of comprehensive income of EUR 6.0m. The equity ratio increased from 23.8% as at year-end 2015 to 28.7% as at 31 December 2016.

EUR m

31 Dec. 2016

Change

31 Dec. 2015

Revenue

775.4

-1.9%

790.7

Revenue, adjusted1

754.4

3.0%

732.1

EBITDA

29.1

-8.6%

31.8

EBITDA, adjusted2

33.4

4.8%

31.8

EBIT

13.9

-19.7%

17.4

EBIT, adjusted2

18.2

4.8%

17.4

Profit for the year

8.9

1.3%

8.8

Profit for the year, adjusted2

13.2

49.7%

8.8

Equity

101.8

6.8%

95.3

Equity ratio

28.7%

4.9%

23.8%

 1Adjusted for revenue of EUR 18.8m (2015: EUR 42.6m) attributable to Frauenthal Automotive Azambuja SA and its sales subsidiaries, and of EUR 2.3m (2015: EUR 16.0m) attributable to SHT Slovensko s.r.o.
2Adjusted for deconsolidation expense of EUR 3.9m in relation to Frauenthal Automotive Azambuja SA and its sales subsidiaries, and of EUR 0.3m in relation to SHT Slovensko s.r.o.

 

Figures for deconsolidation effects

The last remaining company in the light steel springs business unit – the Frauenthal Automotive Azambuja SA production facility in Portugal, with its Austrian sales subsidiaries Frauenthal Automotive Verwaltungsgesellschaft mbH and Frauenthal Automotive Beteiligungsverwaltungs GmbH – was deconsolidated as of 30 April 2016. These companies contributed revenue totalling EUR 18.8m between January and April 2016. In 2015, the companies’ full-year revenue contribution was EUR 42.6m. Extraordinary expenses of EUR 3.9m were recognised in the Frauenthal Automotive Division’s earnings to reflect the deconsolidation. In addition, the Frauenthal Trade Division’s Slovakian operations (SHT Slovensko s.r.o.) were sold and deconsolidated with effect from 16 March 2016, completing the withdrawal from a business that was no longer possible to run at a profit. SHT Slovensko s.r.o. reported revenue of EUR 2.3m in 2016 (2015: full-year revenue of EUR 16.0m). Extraordinary expenses of EUR 0.3m were recognised in the Frauenthal Automotive Division’s earnings.

 

Outlook for 2017

In 2017, the domestic plumbing and heating market is expected to grow slightly thanks to the contract business, although the strong pressure on margins is likely to persist. As a result, Frauenthal Trade anticipates moderate revenue growth at best. Earnings should improve in 2017 after the integration of IT and logistics is complete. The European commercial vehicle market is continuing to perform well, as is the passenger vehicle market, which is important for Frauenthal Automotive. The acquisition of Mahle Motorkomponenten GmbH – now renamed Frauenthal Powertrain – was concluded on 31 March 2017. Mahle’s annual revenue of EUR 125m will result in significant growth at Frauenthal Automotive. The ongoing expansion of the Frauenthal Automotive Division, which is aimed at creating a key strategic player in the European commodity business, will be driven forward by means of further acquisitions.

 

Dividend

No dividend will be distributed for the 2016 financial year.

 

Contact

Frauenthal Holding AG
Martin Sailer
m.sailer@frauenthal.at

Erika Hochrieser
e.hochrieser@frauenthal.at

Rooseveltplatz 10
1090 Vienna
Tel. +43 (0)1 5054206 

 

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