DGAP-News: JOST Werke AG / Key word(s): 9-month figures
JOST sales grow by 15% and adjusted EBIT by 38% in the third quarter of 2017
- Sales in third quarter grew by 15% to EUR 171.5 million
- Adjusted EBIT increased by 38% to EUR 19.5 million in third quarter
- Net profit in third quarter improved to EUR6.3 million
- JOST confirms the increased outlook for fiscal year 2017
Strong sales growth in the third quarter
In the third quarter of 2017, JOST's total sales rose by 15% to EUR 171.5 million, compared to the same period of the previous year (Q3 2016: EUR 149.4 million). In the first nine months of 2017 sales grew by 10% to EUR 533.3 million (9M 2016: EUR 487.0 million). The continuous strong sales growth was mainly driven by high activity levels in Asia, Pacific and Africa (APA), where JOST increased sales by 47% to EUR 108.7 million (9M 2016: EUR 73.9 million) in the first nine months of 2017. The rapidly recovering truck market in North America also contributed to the positive development, with sales in the region rising by 6% to EUR 91.6 million (9M 2016: EUR 86.5 million). In Europe sales increased by 2% to EUR 333.0 million (9M 2016: EUR 326.6 million), supporting the overall growth of group's sales.
Lars Brorsen, CEO of JOST Werke AG, commented: "2017 remains a very strong year for JOST: we continued to grow in all our markets and achieved record sales levels, countering the usual seasonal slowdown typical of the third quarter. This good performance highlights the acceptance of our products by customers and confirms our goal to outperform the market."
Continuous improvements in profitability
As a result of disciplined cost management as well as continuous efficiency gains in all segments and supported by the strong sales performance, JOST was able to increase earnings before interest and taxes (EBIT) - adjusted for exceptional items and PPA effects - by 38% to EUR 19.5 million during the third quarter of 2017 (Q3 2016: EUR 14.1 million) with adjusted EBIT margin expanding to 11.4% (Q3 2016: 9.4%).
In line with this development, adjusted EBIT rose by 24% to EUR 63.8 million during the first nine months of 2017 (9M 2016: EUR 51.5 million). The strong sales growth in APA at favorable margins was one of the main reasons for this development - adjusted EBIT in APA grew by 51% to EUR 17.2 million (9M 2016: EUR 11.4 million) during the first nine months. In North America adjusted EBIT increased by 17% to EUR 9.8 million (9M 2016: EUR 8.3 million) in the same period, despite increases in raw material prices slightly affecting earnings during the third quarter. In the segment Europe, adjusted EBIT grew by 14% to EUR 35.2 million in the first nine months of the year (9M 2016: EUR 30.8 million), mostly due to the completed integration of the axle business in addition to general efficiency gains.
Balance sheet and financial position strengthened
JOST continued to demonstrate the strong cash generation of its business model. This was further supported by a good working capital management, which resulted in stable net working capital of EUR 137.6 million despite the strong sales growth. Consequently, net working capital ratio improved to 20.2% (Sept. 30, 2016: 21.6%) in the reporting period.
The strong cash generation coupled with the capital increase of EUR 131.6 million as part of the stock listing, helped to substantially reduce net debt to EUR 123.3 million as at September 30, 2017 (Dec 31, 2016: EUR 272.8 million). Equity also improved significantly to EUR 195.1 million (Dec 31, 2016: EUR -137.4 million), resulting in an equity ratio of 32%.
Net profit in the third quarter 2017 amounted to EUR 6.3 million, compared to net losses of EUR 4.4 million in the previous year.
"We are constantly looking for additional efficiencies in the group. The continuous progress in all segments combined with our newly strengthened financial position constitutes a sound foundation on which we can execute our future growth plans," said Christoph Hobo, CFO of JOST Werke AG.
JOST confirms the increased outlook for full year 2017
The Management Board confirmed the outlook announced on October 23: JOST expects sales to grow at a high-single digit rate in 2017 (previous forecast: mid-single digit growth rate) and adjusted EBIT to grow at a moderate-double digit rate (previous forecast: high-single digit growth rate), compared to the fiscal year 2016.
|Company:||JOST Werke AG|
|Phone:||+49 6102 2950|
|Fax:||+49 (0)6102 295-298|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart, Tradegate Exchange|
|End of News||DGAP News Service|