Pankl Racing Systems AG: 2013Q1-Q3

Kapfenberg, 18 November 2013 (pta005/18.11.2013/07:45 UTC+1) Pankl Racing Systems AG - 2013Q1-Q3

- 17.2% revenues growth in Q3
- Start-up expenses for serial production projects and weak F1 business burdened profitability also in Q3
- In 2013Q1-3, EBIT declined from Eur7.7m to Eur4.0m
- In 2013Q1-3, EBITDA declined from Eur14.8m to Eur12.2m

EUR k	2013Q1-Q3	2012Q1-Q3	CHG	2013Q3	2012Q3	CHG
Revenues	103,849	96,789	7%	32,933	28,088	17%
EBITDA	12,200	14,764	(17%)	2,883	3,138	(8%)
EBIT	3,991	7,727	(48%)	40	705	(94%)
EBITDA margin	12%	15%	-	9%	11%	-
EBIT margin	4%	8%	-	0%	3%	-

Revenues increase by 7%, EBIT decreases by 48%
In the first 9 months of the fiscal year 2013, Pankl Group revenues increased by 7.3% to Eur103.8m. In the first 2 quarters of the fiscal year, we experienced revenues declines in aerospace and motor racing. In Q3, we achieved revenues growth in all segments, revenues increased by 17.2% from Eur28.1m to Eur32.9m. This growth was mainly due to the new high performance business and the continuously strong aerospace business.
In the first 9 months of the fiscal year, the high performance division burdened operating profits of Pankl Group due to high start-up expenses. From April onwards, operating profits of the group were positively impacted by the continuously strong development of the aerospace division. In the first 9 months of 2013, operating profits (EBIT) amounted to Eur4.0m or 3.8% of revenues compared to Eur7.7m or 8.0% of revenues in the same period last year. In the seasonally weak Q3, EBIT amounted to Eur40k (2012Q3: Eur705k).

Racing/High Performance Segment
Racing/High Performance Segment revenues increased by 7.6% to Eur86.1m despite the unfavourable economic environment (2012Q1-3: Eur80.0m). The imminent 2014 F1 rule change and the more restrictive use of racing budgets caused by the uncertain economic development impacted negatively on revenues and earnings in the motor racing business. The start of the first high performance projects in the new Bruck upon Mur plant contributed positively to revenues. In Q3, segment revenues increased by 20.6% from Eur22.3m to Eur26.8m. Numerous production start-ups in the serial business led to high expenses, which burdened earnings in the Racing / High Performance Segment. In the first 9 months of the fiscal year, operating earnings (EBIT) amounted to Eur3.0m or 3.5% of revenues versus Eur5.7m or 7.2% of revenues in the same period last year.

Aerospace Segment
In the first 9 months of the fiscal year 2013, Aerospace Segment revenues increased by 5.7% to Eur18.0m (2012Q1-3: Eur17.0m). While we experienced declines in Q1 due to a weak US business we achieved a turnaround from Q2 and recorded significant growth. In Q2, revenues grew by 14.0% and in Q3 by 6.6%. In Q3, revenues amounted to Eur6.2m after Eur5.9m in the same period last year. In the first 9 months of the fiscal year, operating earnings amounted to Eur1.7m or 9.5% of revenues after Eur2.1m or 12.4% of revenues in the same period last year.

Outlook
CEO Wolfgang Plasser: "Our major capex programme is now largely completed. In Q3, we started to generate significant revenues growth from the new production plants. During the reporting period, the racing business remained below our expectations and the high performance business burdened our profitability. Due to a significantly increasing order intake, we expect a major improvement in the coming quarters."

The interim report for the first 9 months of the fiscal year 2013 is available on the homepage of the company under http://www.pankl.com/Pankl-Racing.485.0.html.

(end)