EXEL INDUSTRIES

2017-2018 first-half results : first-half results less positive than last year's

PRESS RELEASE                                                                                            Paris, May 31, 2018

2017-2018 first-half results
EXEL Industries: first-half results less positive than
last year's 

	1st quarter 2017	1st quarter 2018
in €M	Oct 16 - Mar 17	Oct 17 - Mar 18
Revenue	352,7	343,0
Current operating income	15,1	10,9
%	4,3%	3,2%
Non-recurring items	0,4	0,3
Financial expenses	-2,0	-1,8
(Losses)/gains on foreign exchange	1,4	-2,8
Profit before income tax	14,9	6,6
Tax expense	-6,6	-2,6
Share of profit of associates	0,1	0,1
Net income	8,4	4,1

·        Analysis of 2017-2018 first-half results

Given the seasonal nature of our activities, the first half of the fiscal year represents a relatively small percentage of full-year results: in the 2016-2017 fiscal year, this accounted for 40% of FY sales and 22% of FY current operating income.

The decline in the first half 2017-2018 current operating income was due mainly to a contraction in activity volumes in the Agricultural Spraying business and the losses incurred on certain automotive projects in the Industrial Spraying division. Although standard equipment and spare part sales in the Industrial Spraying division increased at constant foreign exchange rates, the favorable margin impact of this product mix was offset by devaluation of the US dollar.