HÖRMANN Group publishes 2017 interim report

HÖRMANN Industries GmbH (corporate bond, German Securities Code Number (WKN): A2AAZG) today published its half-yearly financial statements for 2017. Sales increased by 16.2% year-on-year to EUR 240.9 million in the first six months of 2017 (H1 2016: EUR 207.2 million). EBIT improved by 26.5% to EUR 4.3 million. Compared with the same period of the previous year, this sales and earnings development was driven by organic growth as well as the first-time consolidation of Funkwerk AG and VacuTec Meßtechnik GmbH, majority interests in which were acquired in the fourth quarter of 2016. Net income for the first half of the year also improved significantly from EUR 0.3 million to EUR 1.9 million.

The previous year’s operating earnings (H1 2016: EUR 4.1 million) were not matched at the Automotive division despite sales rising 5.2% to EUR 184.2 million. Operating EBIT, net of insurance contributions for adjustments to personnel capacity totalling EUR 1.8 million, amounted to EUR 3.3 million in the first six months of 2017. This is due primarily to considerable year-on-year rises in material prices recognised directly in equity, which led only to increased sales. In addition, the new factory in Slovakia, which began series production in June 2017, incurred start-up losses of EUR 0.7 million. The Slovak factory is part of a comprehensive programme of strategic investment aimed at increasing automation and thus improving the company’s competitive position on the basis of more flexible and efficient production.

At EUR 16.3 million, sales at the Engineering division were up slightly year-on-year (H1 2016: EUR 15.4 million). Due to a healthy order book, EBIT improved markedly to EUR 2.1 million (H1 2016: EUR -0.1 million). The excellent capacity utilisation of the factory planning unit, which continued to benefit from the consistently good state of the construction industry, as well as the integration of VacuTec Messtechnik GmbH were particularly notable factors in the good performance.

The Communication division generated sales of EUR 33.5 million (H1 2016: EUR 5.5 million) and EBIT of EUR 1.3 million (H1 2016: EUR 0.6 million) in the first half of 2017. Funkwerk AG, newly integrated into this division, contributed EUR 27.8 million to sales and EUR 0.7 million to EBIT. In the train radio product segment, Funkwerk AG benefited in particular from high demand for filter equipment for radio units, which helps to shield onboard communications from external interference. In the video systems product segment, demand was boosted as a result of the rising global threat of terrorism and increased security needs among the general public.

As part of the establishment of the company’s fourth division, Services, HÖRMANN Industrieservices GmbH and HÖRMANN Kommunikation & Netze GmbH were integrated in the new division as of 1 January 2017. In the period under review, the new division generated sales of EUR 7 million and EBIT of EUR 0.1 million.

The contract with MAN Truck & Bus AG for the complete acquisition of former joint venture HÖRMANN Automotive Gustavsburg GmbH signed after the period under review on 11 July 2017 took legal effect on 18 August 2017 once the agreed terms and conditions had come into force and approval had been granted by the competition authorities. With that, HÖRMANN Automotive GmbH, a company of the HÖRMANN Industries Group, acquired the full 40% stake from MAN Truck & Bus AG as well as all production facilities used by the former joint venture. MAN Truck & Bus AG and HÖRMANN Automotive Gustavsburg GmbH will continue their long-standing business relationship in future in the form of standard customer-supplier relationships, secured through long-term master supply agreements in order to ensure the financial success of both partners.

Considering the first six months of 2017 and current business performance, the company has confirmed the earnings forecast for the 2017 financial year as presented in the 2016 consolidated financial statements. The company is anticipating consolidated sales of approximately EUR 510.0 million and operating earnings before interest and taxes in the region of EUR 13.0 million.

The full interim financial statements of HÖRMANN Industries GmbH are available to download at https://www.hoermann-gruppe.com/en/investor-relations/financial-reports/financial-reports

The PDF contains selected key figures for HÖRMANN Industries GmbH