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

 Vienna, 25 April 2018

  • Annual results for 2017 
  •  Outlook for 2018
  • Dividend

Annual results for 2017

The Frauenthal Group reported record revenue of EUR 904.5m in 2017, which represented a year-on-year increase of EUR 129.1m or 16.6%.

Revenue at Frauenthal Automotive stood at EUR 284.1m, a year-on-year improvement of EUR 95.2m or 50.4%. This chiefly reflects the acquisition of the Automotive Division’s new powertrain business unit, which contributed EUR 91.4m to Group revenue in the period from April to December. Frauenthal Trade’s performance was positive, with revenue gains of EUR 33.9m (up 5.8%) to EUR 620.4m. This growth was chiefly attributable to strong demand from large-scale construction projects.

The Frauenthal Group’s earnings before interest, tax, depreciation and amortisation (EBITDA) of EUR 37.1m were up EUR 3.7m on the previous year’s underlying total of EUR 33.4m1. Both the Frauenthal Trade and Frauenthal Automotive divisions made positive earnings contributions, with EBITDA of EUR 20.2m (up 16.3%) and EUR 20.1m (up 11.0%) respectively. The powertrain business unit’s EBITDA was EUR 1.2m for the period April-December 2017. Both divisions’ increased earnings stemmed from market growth. The Trade Division achieved cost savings.

As a result of the impairment of EUR 21.5m recognised in the powertrain business unit, the Frauenthal Group reported negative EBIT of EUR -1.8m. Underlying EBIT (i.e. after adjustment for impairment) amounted to EUR 19.8m2, which represented a year-on-year improvement of EUR 1.6m.

Equity declined by EUR 7.4m from EUR 101.8m to EUR 94.4m, primarily as a result of the loss for the period and the rise in total assets following the acquisition of the powertrain business unit. The equity ratio declined from 28.7% as at year-end 2016 to 22.6% as at 31 December 2017.

 

EUR m31 Dec. 2017      Change31 Dec. 2016
Revenue904.516.6%775.4
EBITDA37.127.5%29.1
EBITDA, adjusted 1)37.111,3%33.4
EBIT-1.8-112.6%13.9
EBIT, adjusted 1) 2)19.88.9%18.2
Profit/loss for the year-8.5-195.5%8.9
Profit/loss for the period, adjusted 1) 213.0-1.1%13.2
Equity94.4-7.3%101.8
Equity ratio22.6%-6.1%28.7%

 1)2016: EBITDA, EBIT and profit/loss after tax adjusted for deconsolidation expense of EUR 4.2m in relation to Frauenthal Automotive Azambuja and its sales subsidiaries (Automotive Division), SHT Slovensko s.r.o. (Trade Division) and Frauenthal Liegenschaftsverwaltungsgesellschaft.

 2)2017: adjusted for impairment of EUR 21.5m relating to Frauenthal Powertrain. In November 2017 the need to recognise unscheduled impairment of EUR 21.5m was identified at Frauenthal Powertrain GmbH (Automotive Division), which had been acquired in March 2017. EBIT and profit/loss after tax were adjusted for this impairment in 2017.

 

 

Outlook for 2018

The Frauenthal Group expects the positive market conditions to continue for both divisions in 2018. In the Frauenthal Trade division, the strong position on the market and exploitation of key potential synergies is expected to translate into further improvements in earnings on the back of only moderate revenue increases. Developments on the market will continue to be driven by the contract segment, with pressure on margins unchanged as a result. In light of the favourable market conditions, Frauenthal Automotive expects to report another improvement in earnings. Measures to improve the performance of Frauenthal Powertrain are currently being implemented.

 

Dividend

No dividend will be distributed for the 2017 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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0.087831020355225