DGAP-News

Ringmetall starts the year with substantial growth in sales and earnings - Seite 3

Steel price changes were the most pronounced effect on the core business segment of Industrial Packaging. Sales rose by 23.4 percent to EUR 22.7 million (Q1 2016: EUR 18.4 million). The steel price-related effect in sales growth was above ten percentage points. The division's EBITDA improved by 5.7 percent to EUR 3.4 million (Q1 2016: EUR 3.2 million). The German market in particular showed a positive development, where a sharp increase in demand for clamping rings was recorded. Exports to Latin America were also up significantly, where among others Cuba is now supplied with products. However, business in Turkey developed tricky. Thus as expected, sales were down compared to the previous year due to exchange rate effects.

In the Industrial Handling division, investments in self-developed products showed initial success. Accordingly, sales rose by 1.5 percent to EUR 4.0 million (Q1 2016: EUR 3.9 million). EBITDA further recovered to EUR 0.25 million, up 5.4 percent (Q1 2016: EUR 0.24 million). Demand rose particularly in the area of ​​restraint systems for forklift trucks. However, sales of subcontracting products for the agricultural machinery industry also increased. Here stabilizers and clutch systems were the main demand.

'The increased demand in the Industrial Handling Division underlines that we have made the right decision with our increased investment in new products', Christoph Petri explained. 'In addition, we have appointed Mr. Kuhlmann, a very experienced manager, as the new Managing Director of our subsidiary HSM. We therefore assume that the current positive momentum will prove sustainable.'

The Management Board of the Ringmetall Group continues to assess positively the current market environment for company acquisitions. After initial discussions and extensive market surveys, the company expects to successfully complete one or two smaller acquisitions in the current financial year. With regard to the development of the company in the full year, the Management Board adheres to the previously communicated outlook.

Further information about the Ringmetall Group and its affiliated subsidiaries is available at www.ringmetall.de.

Contact:

Ingo Middelmenne

Investor Relations

Ringmetall AG