DGAP-Ad-hoc: Westag & Getalit AG / Key word(s): Annual Results/Dividend
In the fiscal year 2018, Westag & Getalit AG generated consolidated sales revenues of EUR 233.2 million (previous year: EUR 234.4 million). In spite of the generally positive environment in the construction sector, total revenues were adversely affected by weaker domestic business. Necessary repair work on the power plant and the resulting downtime also had an adverse effect on domestic revenues. Export revenues showed a positive trend in both divisions. They were up by 6.0% on 2017 and totalled EUR 57.9 million in the fiscal year 2018 (previous year: EUR 54.6 million). As a result, the export share increased from 23.3% to 24.8%.
At EUR 103.3 million, sales revenues in the Surfaces/Elements Division were up by 2.7% on the previous year in 2018. While domestic revenues rose by 2.6% to EUR 72.2 million, export revenues climbed 3.0% to EUR 31.1 million (previous year: EUR 30.2 million). The division's export share thus stands at 30.1% (previous year: 30.0%).
Against the background of almost full capacity utilisation and difficult competitive conditions, sales revenues in the Doors/Frames Division totalled EUR 125.4 million, down by a moderate 1.2% on the previous year's EUR 126.9 million. The division's export revenues increased by 9.8% from EUR 24.4 million to EUR 26.8 million in 2018. Due to the expansion of the project business, the export share climbed from 19.2% to 21.4%.
Sales revenues in the Central Division dropped from EUR 6.9 million to EUR 4.5 million in 2018. One of the main reasons was the repair and resulting downtime of the power plant, which reduced revenues in this division by EUR 2.7 million.
Consolidated earnings before taxes amounted to EUR 6.0 million in 2018 (previous year: EUR 9.1 million). The Group's earnings in 2018 were primarily affected by increased material and freight costs and personnel expenses. To offset these cost increases and to stabilise the profit contributions, the company announced price increases for its own products for 2019 already at the end of the third quarter of 2018. One-time effects additionally weighed on the result in the fiscal year 2018. The effects of the repair of the power plant and consulting expenses that became necessary in conjunction with the public takeover bid for the company's shares reduced the Group's earnings by a total of EUR 3.3 million. Compared to 2017, the result of the year 2018 benefited from the fact that the expenses incurred in the previous year to reorganise the product ranges did not recur in 2018. Consolidated net profit moved in line with earnings before taxes and reached EUR 4.5 million (previous year: EUR 6.5 million). Earnings per share amounted to EUR 0.87 per preference share (previous year: EUR 1.25) and to EUR 0.81 per ordinary share (previous year: EUR 1.19).
At today's Supervisory Board meeting, the financial statements of Westag & Getalit AG for the fiscal year 2018 were adopted and the consolidated financial statements were approved. The Management Board and the Supervisory Board will propose a dividend of EUR 0.18 per preference share and of EUR 0.12 per ordinary share to the Annual General Meeting on May 17, 2019. This dividend proposal is attributable to the lower HGB net profit for the year 2018 of EUR 1.9 million (previous year: EUR 4.7 million) as well as to the unsatisfactory cash flow generated in the past fiscal year.
Mr Christopher Stenzel, Chief Financial Officer of Westag & Getalit AG since November 2015, will leave the company at his own request with effect from June 30, 2019 to take up a new professional challenge. Over the past years, Mr Stenzel has always been entirely committed to the company. The Supervisory Board therefore regrets Mr Stenzel's departure very much and thanks him sincerely for the excellent and trusting cooperation. We wish Mr Stenzel all the best for the future and will always regard him as a friend of the Westag family.
In view of a generally positive economic environment, the management of Westag & Getalit AG is optimistic about the future. Building on the strengths of the company, it is our objective to analyse the business activity with the help of a product-market matrix and to focus on higher-margin products and markets. This includes a review of the strategic focus to assess the product portfolio and the services. Moreover, the internal processes will be reviewed as to whether and how external partners may assist the company in further improving its efficiency. It is the objective of the Management Board to improve the Group's earnings position and to achieve an adequate return on capital employed.
In this context, the new development opportunities that will arise for the company within the Broadview Group will also have a positive effect. The Group gives Westag & Getalit access to new technologies, new products and an expanded distribution network without the company losing its distinct profile.
For 2019, management projects a high single-digit percentage increase in sales revenues and a noticeable improvement in earnings before taxes and, consequently, in consolidated net profit. In spite of the moderate revenue trend at the beginning of the year, the Management Board remains optimistic that these projections will be met. Besides the measures mentioned above, this expectation is also based on continued good construction activity.
The above release and further information on Westag & Getalit are available on the Internet at www.westag-getalit.com.
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15-March-2019 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
|Company:||Westag & Getalit AG|
|Phone:||+49 (0)5242 17 - 0|
|Fax:||+49 (0)5242 17 - 5603|
|Listed:||Regulated Market in Dusseldorf, Frankfurt (General Standard); Regulated Unofficial Market in Berlin, Hamburg, Stuttgart, Tradegate Exchange|
|End of Announcement||DGAP News Service|
788141 15-March-2019 CET/CEST