02/16/2011

Schuler posts positive result in Q1 with order backlog worth over one billion euros

Strong growth in new orders, sales and earnings / reduction in net financial liabilities - New orders: € 505.4 million (prior year: € 151.7 million) - Sales: € 178.0 million (prior year: € 146.8 million) - EBITDA: € 15.1 million (prior year: € –1.9 million) - Headcount: 5,001 (prior quarter: 4,969)

In the first quarter of its fiscal year 2010/11 (ending December 31), Schuler AG made significant gains in both sales and earnings. Thanks to a strong increase in demand from both domestic and foreign customers, the Göppingen-based global market leader in metalforming technology posted record new orders of € 505.4 (prior year: € 151.7) million. The order backlog doubled to € 1,002.7 (prior year: € 512.1) million.

Positive result

Following two fiscal years of losses, Schuler returned to strongly positive earnings in the first quarter of 2010/11. With consolidated sales of € 178.0 (prior year: € 146.8) million, EBITDA reached € 15.1 (prior year: € -1.9) million. EBIT rose to € 9.3 (prior year: € -7.2) million, while pre-tax earnings improved to € 1.8 million following a loss of € 14.0 million in the same period last year.

Europe and Asia driving growth

In the first quarter of its current fiscal year, the Schuler Group succeeded in securing growth over a wide geographical area. The main growth drivers were Europe and Asia. In Germany alone, Schuler more than doubled new orders to € 143.3 (prior year: € 62.6) million. Orders from the rest of Europe totaled € 70.4 (€ 18.0) million. In Asia, new orders leapt to € 249.3 (€ 9.0) million. A weak US economy meant that the only year-on-year fall in new orders was from America (€ 40.8 million compared to € 60.4 million in the same period last year).

Despite the encouraging development in Germany, new orders received from other countries in the first quarter accounted for 71,6% (58.7%) of the total figure of € 505.4 million. “Schuler is gradually establishing itself as the technological leader on the world’s most important markets and in key growth fields,” states Stefan Klebert, who took over as CEO of Schuler AG on October 1, 2010. “We will continue to pursue this strategy of international expansion. At the same time, Germany will remain our most important production base by far, due to the technical skills of our work force here.”

More jobs

At the end of the quarter on December 31, 2010, the Schuler Group employed a total of 5,001 people (including apprentices), compared to a headcount of 4,969 on September 30, 2010. Almost 80 percent of the work force (3,949) are employed at the Group’s facilities in Germany.

Financial position

The Group’s capital expenditures in the first quarter remained virtually unchanged at € 1.8 (€ 1.9) million. As of December 31, 2010, the company was able to reduce its net financial liabilities to € 36.2 million – well below the figure on the previous balance sheet date of September 30, 2010 (€ 106.3 million).

Outlook

“The economic result of the first quarter and the current development of business provide Schuler with a solid foundation to successfully drive our growth program and strategic realignment, and to strengthen our capital base,” states CEO Klebert. “Sales and earnings are expected to grow strongly in fiscal year 2010/11. Schuler AG forecasts consolidated sales in the range of € 870 to € 920 million for its current 2010/11 fiscal year.”

Schuler aims to reach consolidated sales of € 1.2 billion in its fiscal year 2013/14, mainly through organic growth, and to increase its profit margin (based on EBITDA) to ten percent. CEO Klebert had previously announced the company’s alignment with ten strategic target markets, thus enhancing its sales strength and customer orientation. While headcount will remain at least constant, the Group is streamlining its structures and merging its two largest companies, Schuler Pressen GmbH & Co. KG and Müller Weingarten AG.

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