Pankl Racing Systems AG: Q1-Q3 2015

Kapfenberg (pta007/02.11.2015/07:40 UTC+1) 2nd November 2015

- Q3 revenues increased by 10%
- Q3 EBIT increased by 70% to Eur 1.4m
- Q1-3 revenues up by 4% versus same period last year
- Ongoing strong growth in the high performance division

in Eur k		Q1-3 2015	Q1-3 2014	CHG		Q3 2015	Q3 2014	CHG
Revenues		129,566	124,477	4%		41,267	37,388	10%
EBITDA		18	18,488	-3%		4,666	3,926	19%
EBIT		8,034	9,39	-14%		1,381	813	70%
Earnings after taxes		5,019	5,752	-13%		486	329	48%
EBITDA margin		14%	15%	-		11%	11%	-
EBIT margin		6%	8%	-		3%	2%	-

In Q3, for the first time this year, we were able to exceed last year's figures. Revenues increased by 10% to Eur41.3m, operating earnings (EBIT) even increased by 70% to Eur1.4m. Q3 is the weakest seasonal quarter, although EBIT margins increased from 2.2% in 2014Q3 to 3.3% in 2015Q3. This favourable development was mainly due to the ongoing strong growth in the high performance division. In Q3, we were also able to increase motor racing revenues. The Aerospace Segment still suffered significantly from the decline in the helicopter business driven by weak oil prices.

In the first 9 months of the fiscal year 2015, revenues amounted to Eur129.6m, which was an increase of 4.1% versus the same period last year (2014Q1-3: Eur124.5m). In 2015Q1-3, operating earnings (EBIT) amounted to Eur8.0m or 6.2% of revenues versus Eur9.4m or 7.5% of revenues in 2014Q1-3.

Current low interest rates and a favourable development of the EUR/USD foreign exchange rate led to an improvement of the net financial result from Eur-1.8m in 2014Q1-3 to Eur-1.5m in 2015Q1-3.

In 2015Q1-3, net earnings after tax amounted to Eur5.0m versus Eur5.8m in 2014Q1-3. Net earnings attributable to Pankl shareholders were only slightly lower than last year and amounted to Eur4.8m or Eur1.52 per share in 2015Q1-3 (2014Q1-3: Eur4.9m or Eur1.57 per share).

Racing/High Performance Segment
In the first 9 months of the fiscal year 2015, Racing/High Performance Segment revenues increased by 7.2% versus the same period last year and amounted to Eur112.0m (2014Q1-3: Eur104.4m). This improvement was mainly due to the growth in the high performance division. Motor racing revenues declined during this period, which was due to the exceptional order book in 2014 caused by the F1 rule changes. The expected loss of these non-recurring, high margin F1 revenues was only partly offset by higher high performance earnings. Therefore operating earnings (EBIT) decreased from Eur7.3m or 7.0% of revenues in 2014Q1-3 to Eur6.5m or 5.8% of revenues in 2015Q1-3.

Aerospace Segment
The Aerospace Segment is still burdened by weak demand for civil helicopters. This is due to ongoing low oil prices and the appropriate lower use of helicopters in offshore oil exploration. As a result, Aerospace Segment revenues decreased from Eur20.2m in 2014Q1-3 to Eur17.7m in 2015Q1-3. This impacted also on earnings. In 2015Q1-3, Aerospace Segment EBIT amounted to Eur0.5m or 3.0% of revenues versus Eur1.5m or 7.7% of revenues in 2014Q1-3.

Outlook
CEO Wolfgang Plasser: "In accordance with our plans, the high performance division developed very well and accounts already for 35% of our group revenues. This percentage is likely to rise further. In 2015, the growth comes mainly from aluminium drivetrain systems manufactured on our new fully automated forging press line. Despite the difficult environment in motor racing and the helicopter market, we were able to record the second-best 9-months results of our corporate history. We continue to expect a satisfactory business performance and good results in the fiscal year 2015.

The financial report for the first nine months of the fiscal year 2015 is available on the homepage of the company under http://www.pankl.com/fileadmin/user_upload/pankl_Q3_2015_E_WEB.pdf

(end)