Pankl Racing Systems AG: 2014H1

Kapfenberg (pta006/25.08.2014/07:45 UTC+2) 25 August 2014

- Revenues growth of 23% in the first half of 2014
- EBIT more than doubled to Eur8.6m
- Earnings per share increased from Eur 0.68 to Eur 1.50

EUR k		2014H1	2013H1	CHG		2014Q2	2013Q2	CHG
Revenues		87.089	70.916	23%		40.288	33.868	19%
EBITDA		14.562	9.317	56%		5.611	3.653	54%
EBIT		8.577	3.951	117%		2.549	893	185%
Earnings after tax		5.423	2.272	139%		1.547	459	237%
EBITDA margin		17%	13%	-		14%	11%	-
EBIT margin		10%	6%	-		6%	3%	-

In 2014H1, Pankl Group was able to achieve major improvements of all profitability ratios compared to the same period last year. Revenues increased by 22.8% from Eur70.9m to Eur87.1m. Both segments contributed to this positive development. In Q1 and Q2, engine and drivetrain components recorded the strongest gains, which was due to the new Formula 1 rules.
Earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 56.3% from Eur9.3m in 2013H1 to Eur14.6m in 2014H1. EBIT more than doubled compared to the same period last year. It increased from Eur4.0m or 5.6% of revenues to Eur8.6m or 9.8% of revenues, a new half-year record result for the Pankl Group in absolute terms. This exceptional earnings development was mainly due to the favourable revenues growth in the F1 business and a good development of the aerospace business.

Racing/High Performance Segment
In the first 6 months of the fiscal year 2014, Racing/High Performance Segment revenues increased by 23.7% from Eur59.3m to Eur73.4m. This growth was mainly due to the introduction of the new F1 V6 turbo engines. During the same period last year, the rule changes caused revenues to decline earlier than usual. In the first 6 months of the current fiscal year the rule changes caused significant growth due to the ongoing development work. Revenues were also positively impacted by the new high performance projects. The implementation of various efficiency improvements and a more favourable product mix led also to improvements in profitability. Operating earnings (EBIT) more than doubled and amounted to Eur7.0m or 9.6% of revenues (2013H1: Eur3.3m or 5.5% of revenues).

Aerospace
In the first half of the fiscal year 2014, Aerospace Segment revenues increased by 17.6% from Eur11.7m to Eur13.8m. After the strong growth in Q1 - revenues increased by 30.4% - momentum slowed in Q2 with a revenues growth of 7.5%. The significant H1 growth was mainly due to an ongoing stable European aerospace business and a recovery in the US aerospace subsidiary despite a continuing weakness in the US military business. In 2014H1, operating earnings (EBIT) amounted to Eur1.1m or 7.8% of revenues compared to Eur1.1m or 9.1% of revenues in the same period last year.

Outlook
CEO Wolfgang Plasser: "In the first half of the fiscal year, we exceeded our own expectations in nearly all market segments. The second half of the fiscal year will be more challenging, also because of the seasonality of the business. We still expect to grow revenues for the whole fiscal year by at least 10%, but more likely by up to 15%. The new fully automated aluminium forging press unit will be in operation in 2014H2. This will mark the conclusion of our major 3-year capex programme."

The interim report for the first half of the fiscal year 2014 is available on the homepage of the company under http://www.pankl.com/fileadmin/user_upload/pankl_H1_2014_E_WEB.pdf

For further information:
Investor Relations
Tel.: +43 3862 33 999 113
e-mail: ir@pankl.com
Internet: www.pankl.com

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