POLYTEC HOLDING AG: Results 1st quarter 2019

Hörsching (pta009/08.05.2019/07:25 UTC+2) .
* Group sales revenues fell by 4.9% to EUR 161.3 million
* EBITDA amounted to EUR 17.7 million, EBITDA margin 11.0%
* EBIT totalled EUR 9.1 million, EBIT margin declined to 5.7%
* Earnings after tax reached EUR 6.1 million
* Earnings per share EUR 0.27
* Equity ratio was 2.4 percentage points down at 40.3%

In the first quarter of 2019, consolidated POLYTEC GROUP sales declined from the excellent level of the preceding year by 4.9% to stand at EUR 161.3 million.

In the first quarter of 2018, the transition to the WLTP exhaust emission and fuel consumption standard had no significant impact upon the POLYTEC GROUP. However, in the course of 2018 the resultant effects increased and led to considerable reductions in call-offs and sales revenue losses in the passenger car market area, which were then prolonged in the first quarter of 2019.

By contrast, the commercial vehicles market area remained positive and showed a marked increase in sales over the previous year.

Compared to the same period of the previous year, sales in the passenger car market area, which with 57.4% (Q1 2018: 64.8%) represents the strongest area within the POLYTEC GROUP, fell sharply by around 15.8% to EUR 92.5 million (Q1 2018: EUR 109.8 million). By contrast, sales in the commercial vehicles market area (32.3%, Q1 2018: 26.0%) were considerable higher than in the comparative months from January to March 2018, rose by 18.4% from EUR 44.9 million to EUR 52.1 million. The non-automotive market area grew by 6.4% from EUR 15.7 million to EUR 16.7 million.

In the first quarter of 2019, POLYTEC GROUP EBITDA amounted to EUR 17.7 million (Q1 2018: EUR 21.1 million). At 11.0%, the EBITDA margin was down by 1.4 percentage points on the 12.4% of the previous year. In the months from January to March, Group EBIT stood at EUR 9.1 million (Q1 2018: EUR 14.6 million). As compared to the same period of 2018, the EBIT margin fell by 2.9 percentage points from 8.6% to 5.7%.

The financial result for the first quarter of 2019 amounted to minus EUR 0.9 million (Q1 2018: minus EUR 1.0 million). Consequently, the earnings after tax totalled EUR 6.1 million (Q1 2018: EUR 10.6 million), which corresponded with earnings per share of EUR 0.27 (Q1 2018: EUR 0.47).

Among other factors, owing to the initial adoption of accounting and evaluation methods in line with "IFRS 16 Leases", balance sheet total was EUR 53.1 million higher at EUR 610.7 million, as compared to 31 December 2018. The equity ratio as at 31 March 2019 was 2.4 percentage points lower than the figure for the 31 December 2018 reporting date at 40.3%. Net debt was EUR 28.2 million higher at EUR 130.0 million, also mainly due to IFRS 16.

Outlook
From a current perspective, the POLYTEC GROUP executive management continues to anticipate that in the 2019 financial year, group sales revenues and EBIT (operating result before interest and taxes) will emulate the level of the 2018 financial year. The fulfilment of this outlook will depend largely upon successful negotiations concerning outstanding claims against customers, which have been and will continue to be caused largely by the sales losses relating to the WLTP and higher material prices. In addition, the effects of a possible Brexit also constitute a significant factor in connection with outlook realisation.

The interim report of POLYTEC Holding AG for the reporting date 31 March 2019 is available on the company's website section Investor Relations, Publications, Financial Reports.
http://www.polytec-group.com/en/Investor-Relations/Publications/Financial-Reports

(end)

Emitter:	POLYTEC HOLDING AG Polytec-Straße 1 4063 Hörsching Austria
Contact Person:	Mag. Paul Rettenbacher
Phone:	+43 7221 701 292
E-Mail:	paul.rettenbacher@polytec-group.com
Website:	www.polytec-group.com
ISIN(s):	AT0000A00XX9 (Share)
Stock Exchange(s):	Vienna Stock Exchange (Official Trade)