- Group sales in the first nine months fell by 5.8% to EUR 478.7 million
- EBIT margin declined from 8.5% to 6.5%
- Group earnings after tax reached EUR 22.2 million, Q1-Q3 2017: EUR 31.0 million
- Corresponded with earnings per share EUR 0.98, Q1-Q3 2017: EUR 1.38
- Equity ratio was 3.1 percentage points up at 45.2%, as compared to 31.12.2017%
As compared to the excellent result of the preceding year, in the first three quarters of 2018 POLYTEC GROUP sales fell by 5.8% to EUR 478.7 million (Q1-Q3 2017: EUR 508.0 million).
In the third quarter, the consequences of the transition to the new WLTP exhaust gas and fuel consumption standard, which came into effect in September 2018, increased in severity. The resultant temporary reductions in vehicle production at major customers led to the anticipated cutback in call-offs and sales losses. Moreover, as was already the case in the first half of 2018, owing to the drop in consumer demand, the call-offs for diesel car products remained weak in the third quarter.
The commercial vehicle market area continued to develop in a positive manner and showed a slight rise in comparison with the preceding year.
As compared to the same period of the previous year, passenger car market sales, which with 62.7% (Q1-Q3 2017: 64.8%) represents the strongest sales area within the POLYTEC GROUP, were down by 8.9% at EUR 300.0 million (Q1-Q3 2017: EUR 329.2 million). Sales in the commercial vehicles market area (26.9%, Q1-Q3 2017: 24.0%) maintained their positive trend and as compared to the period from January to September 2017 rose by 6.0% from EUR 121.7 million to EUR 129.0 million. Due primarily to a drastic reduction in call-offs from one major customer, the share of group sales emanating from the non-automotive market area fell from 11.2% in the first nine months of 2017 to 10.4% in the same period of the current year. However, the fourth quarter of 2018 should show a marked improvement, as the customer started once again to call up the agreed product quantities.
In the first nine months of 2018, POLYTEC GROUP EBITDA totalled EUR 50.0 million (Q1-Q3 2017: EUR 63.9 million). The EBITDA margin fell by 2.2 percentage points over the previous year to stand at 10.4%. In the first three quarters of 2018, group EBIT amounted to EUR 30.9 million (Q1-Q3 2017: EUR 43.4 million). The EBIT margin declined from 8.5% to 6.5%.
In the first three quarters, the financial result amounted to minus EUR 2.6 million (Q1-Q3 2017: minus EUR 2.4 million). The POLYTEC GROUP tax ratio in the first nine months of 2018 amounted to 21.3%, which was 3.1 percentage points lower than in the same period of the previous year. This change emanated from a more favourable country mix. As a consequence, group earnings after tax totalled EUR 22.2 million (Q1-Q3 2017: EUR 31.0 million). This corresponds with earnings per share of EUR 0.98 (Q1-Q3 2017: EUR 1.38).
As at 30 September 2018, the group’s balance sheet total was slightly lower than on 31 December 2017 at EUR 508.2 million and the equity ratio concurrently was 3.1 percentage points higher at 45.2%. As compared to the 31 December 2017 reporting date, net debt was EUR 22.8 million higher at EUR 101.5 million.
The POLYTEC GROUP executive management currently still assumes group sales of around EUR 650 million and EBIT (earnings before interest and taxes) of around EUR 45 million for the financial year 2018. The attainment of this outlook is feasible, but will be made more difficult by the issues surrounding WLTP, diesel drive technology, Brexit, obstacles to international trade, general economic developments and other currently unknown negative factors, the consequences of which cannot at present be fully estimated.
Link: Interim Report Q3 2018