Financial and press releases
INDUS Holding AG reports preliminary figures for 2019: Company confirms forecast
- Revenues pick up despite sharp decline in Automotive Technology segment
- EBIT before impairment of approx. EUR 135 million
- Strong operating cash flow
According to preliminary unaudited figures for the fiscal year 2019, INDUS Holding AG increased its sales revenues to EUR 1.74 billion (previous year: EUR 1.71 billion). Revenues are thus within the projected range of EUR 1.72 to 1.77 billion. At EUR 135 million, the operating result (EBIT) before impairment losses came in at the upper end of the projected range of EUR 129 to 135 million. This was due in particular to record results in the Engineering and Construction/Infrastructure segments. Due to the well-known downturn in the automotive industry, however, the result fell short of the previous year’s EUR 151 million.
For the year as a whole, non-cash impairment losses on goodwill and property, plant and equipment in the total amount of approx. EUR 17 million were recognized in the Automotive Technology segment. At EUR 118 million, the operating result (EBIT) after impairment losses is within the projected range of EUR 116 to 122 million.
The preliminary operating cash flow of EUR 168 million exceeded the previous year’s EUR 96 million by far. This is primarily attributable to a much slower increase in working capital as well as to the amended lease accounting pursuant to IFRS 16 as of 1 January 2019, in the amount of approx. EUR 18 million. The INDUS Group again reached its targets of an equity ratio of over 40 percent and a debt repayment period within the target range of 2 to 2.5 years.
Three of the Group’s five segments performed very well. The Engineering and Construction/Infrastructure segments increased their revenues to new record levels and generated strong EBIT margins. The Medical Engineering / Life Science segment also improved in all areas compared to the previous year. In the Metals Technology segment, the plastic electroplating activities will be discontinued in the course of 2020 due to European regulations; this led to considerable one-time charges in 2019. In the Automotive Technology segment, the persistently weak economic environment and high repositioning expenses, together with non-cash impairment losses, had a strong adverse impact on earnings.
“The year 2019 once again confirmed the strength of our investment portfolio,” says Dr. Johannes Schmidt, Chairman of the INDUS Board of Management. “At the bottom line, we were again able to generate a solid result. In 2020, we will be challenged to continue addressing the problems in Automotive Technology segment. The strong cash flow shows that the measures initiated to promote operational excellence are taking effect. This will allow us to continue strengthening our portfolio through further acquisitions in line with our PARKOUR strategy.”
The full financial statements for the fiscal year 2019 including the forecast for the fiscal year 2020 will be published on the company’s website on 30 March 2020.