Frauenthal Group reports increased revenue and EBITDA in 2017

Vienna, 25 April 2018

  •  Positive trading environment in both divisions 
  •  Revenue up by 16.7% and EBITDA climbed EUR 3.8m 
  •  Loss for the year due to recognition of impairment at Frauenthal Powertrain
  • Outlook: favourable market conditions to continue for both divisions

In 2017 the Frauenthal Group benefited from favourable market conditions in both its Automotive and Trade divisions, as well as synergies arising from the integration of ÖAG and new business for Frauenthal Automotive. Revenue advanced by around 16.6% to EUR 904.5m (2016: EUR 775.4m). Of this amount, around 69% was accounted for by the Frauenthal Trade Division and about 31% by Frauenthal Automotive. It also includes a contribution of EUR 91.4m stemming from the acquisition of Frauenthal Powertrain (Apr-Dec 2017). EBITDA1 rose EUR 3.8m to EUR 37.1m as a result of revenue growth, cost reduction measures in the Frauenthal Trade Division and the consolidation of Frauenthal Powertrain. Frauenthal Trade contributed EUR 20.2m to EBITDA, and Frauenthal Automotive EUR 20.1m. This represents the best operating result in the Frauenthal Group’s history.

The financial year was shaped by the acquisition and integration of Frauenthal Powertrain and its two sites in Germany, which contributed significantly lower earnings than expected. After a reappraisal of the business plan, the need to recognise an impairment of EUR 21.5m was identified following application of the relevant IFRS standards. As a result, Frauenthal reported negative EBIT of -1.8m in 2017. After adjustment for impairment relating to Frauenthal Powertrain, the Frauenthal Group posted EBIT of EUR 19.8m – the best result in some time – a year-on-year rise of EUR 1.6m.


Frauenthal Trade: investments in integration bearing fruit

Growth in the Group’s plumbing supplies segment (ÖAG/SHT) was fuelled by strong demand from large-scale construction projects, the successful integration of logistics systems and the consolidation of the segment’s leading market position in terms of service quality. A significant jump in revenue of 6% year on year did not translate into a proportionate increase in earnings owing to the growth of the segment’s highly price-competitive contract business. Civil engineering and infrastructure specialist Kontinentale reported a healthy order situation relating to municipal customers and benefited from sales and portfolio-related activities. 


Frauenthal Automotive: encouraging level of new business

Both the European truck market and key passenger vehicle manufacturers reported growth. “Frauenthal Automotive won orders for new business in all product areas, which will contribute towards revenue growth in the years to come,” explained Frauenthal Holding CEO Martin Sailer. The Division also focused on customers outside the automotive industry. Gnotec concentrated on extending its activities beyond Scandinavia, with Gnotec Kunshan ramping up production in China as planned. The Chinese plant will contribute a significant increase in earnings in 2018 due to outstanding order books and new models from its largest passenger vehicle customer.



The Frauenthal Group expects the positive market conditions to continue for both divisions in 2018. “We expect Frauenthal Trade’s strong standing and exploitation of key potential synergies to deliver further improvements in earnings on the back of moderate revenue growth,” noted Frauenthal Holding AG Executive Board Chairman Hannes Winkler. Developments on the market will continue to be driven by the contract segment, with pressure on margins unchanged as a result. In addition to leveraging synergies in future, the Group will also continue to develop its organisational structures. 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.



1 2016: Adjusted for deconsolidation expense of EUR 3.9m in relation to Frauenthal Automotive Azambuja and its sales subsidiaries, and of EUR 0.3m in relation to SHT Slovensko s.r.o., as well as EUR 5,000 in relation to Frauenthal Liegenschaftsverwaltungsgesellschaft


About the Frauenthal Group

The Vienna-listed Frauenthal Group is a diversified group consisting of two business divisions: Frauenthal Automotive and Frauenthal Trade. Frauenthal Automotive is the market and technology leader in the European commercial and passenger vehicle industry, as well as a leading development partner. It produces stamped and welded metal parts (Gnotec), airtanks and U-bolts, as well as connecting rods and camshafts (Frauenthal Powertrain), and has eight plants in five European countries and one in China. Frauenthal Trade, a leader in its home market, comprises Austrian plumbing supplies wholesalers SHT and ÖAG, civil engineering and industrial specialist Kontinentale, and service company Frauenthal Service. The Frauenthal Group employed an average of 3,648 people in 2017.




Balloon Communications                                 Frauenthal Group

Sabine Essl                                                          Erika Hochrieser

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