The Frauenthal Group in the first half of 2018 

  •  Revenue and earnings up in both divisions 
  •  Strong automotive market 
  •  Increased pressure on prices in plumbing supplies market 

 “Our automotive business is growing in step with the buoyant market in both the commercial and passenger vehicle segments. In some areas, we are coming up against our capacity limits. In the plumbing supplies market we are confronted with downward pressure on prices, which will continue due to overcapacity in the sector,” said Hannes Winkler, CEO of the Frauenthal Holding AG Executive Board, summarising the status quo. Group revenue in the first half of the year was up 8% to EUR 464m (H1 2017: EUR 429m). This increase is chiefly attributable to Frauenthal Powertrain. This business unit, which primarily focuses on manufacturing connecting rods for passenger and commercial vehicles, was acquired from the Mahle Group in April 2017. EBITDA was up 34% on the same period a year earlier, to just under EUR 20m. EBIT rose by EUR 5.1m year on year, to EUR 11.4m.

 

Frauenthal Trade: pressure on margins, moderate market growth 

The Frauenthal Trade division posted first-half revenue of EUR 286.1m, which represents a year-on-year decline of 2.7%. Despite increasingly cut-throat pricing in the plumbing supplies market, EBITDA advanced by 14% to EUR 6.6m. Cost savings and optimised processes thanks to measures designed to enhance integration delivered an improvement in earnings compared with a year earlier. “The Frauenthal Trade Division is holding its own in a challenging market and competitive environment through cost leadership and competitive prices to achieve its profitability goals. Harnessing the Group’s full service portfolio for all sales channels further reinforces the Division’s leading position on the market,” explained Frauenthal Holding AG CEO Hannes Winkler, who is also responsible for Frauenthal Trade. Civil engineering and infrastructure specialist Kontinentale performed well in the first half of the year with a healthy profit margin.

 

Frauenthal Automotive 

“Ongoing growth in the European commercial vehicle market and the strong passenger vehicle market in our particular segment also poses us with a number of challenges in some areas. Ensuring timely deliveries to customers when working at full capacity in some instances demands a great deal from managers and employees alike,” Martin Sailer, Frauenthal Holding AG Executive Board member in charge of Frauenthal Automotive. Divisional revenue increased by 32% to EUR 177.7m, and EBITDA rose by EUR 4.1m to EUR 14.0m. The results also reflect earnings of EUR 2.1m relating to the disposal of the now deconsolidated Frauenthal Automotive Torun subsidiary in Poland (U-bolts business). The performance of the Gnotec Group, the specialist for pressed, stamped and formed parts, was particularly strong, thanks to growth fuelled by existing and new customers and the ramp-up of production at its Chinese site. 

 

Outlook for 2018 

“The Frauenthal Group’s earnings in 2018 are expected to exceed those of the previous year, which were adjusted for impairment in the Powertrain business unit,” explained Erika Hochrieser, Frauenthal Holding Executive Board Member and CFO. Positive market data and operational improvements in the Frauenthal Automotive division also played a part. The market for the Frauenthal Trade division is seen as remaining stable in the second half, in line with last year’s level. There is no significant improvement in prices in sight owing to ongoing cut-throat competition. 

Business Development is currently focusing on a number of acquisition projects. These are companies in the Gnotec Group’s product area which have the potential to bring in related business with German OEM customers in the automotive segment.

 

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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) and airtanks, as well as connecting rods and camshafts (Frauenthal Powertrain), and has seven plants in four 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 around 3,598 people in the first half of 2018.

Contact:

Balloon Communications
Mag. Sabine Essl
Tel: 0664 433 79 78
E-mail: s.essl@balloon.co.at

Frauenthal-Gruppe

CFO Erika Hochrieser
Tel: 01 505 42 06 - 35
E-mail: e.hochrieser@frauenthal.at

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