DGAP-News

Ringmetall increases EBITDA by around 14 percent in the first half year despite corona crisis - Seite 3

Revenues in the Industrial Packaging segment rose by 2.4 percent to EUR 56.9 million (H1 2019: EUR 55.6 million). Segment EBITDA increased by 18.8 percent to EUR 7.4 million (H1 2019: EUR 6.2 million). In addition to the already mentioned consistent personnel cost management, the cost of materials ratio was also primarily improved as a result of reduced production waste, which had a positive effect on the division's earnings performance. The steadily increasing share of revenues of the inliner product category, which now accounts for around 18 percent of segment revenues, also meant that the order situation was noticeably less sensitive to economic trends. Furthermore, the first positive effects on earnings from the integration of the acquisitions made in 2019 into the Group, which went hand in hand with an optimization of corporate structures, were already evident.

In the Industrial Handling segment, the negative impact of the COVID 19 pandemic was more noticeable in a reduced order situation. Consequently, sales with a major customer in the industrial truck sector fell far short of expectations. On the cost side, however, it was also possible in this segment to adjust personnel costs in line with the order situation and thus contain the extent of the negative effects. Segment revenues decreased by 12.3 percent to EUR 5.4 million (H1 2019: EUR 6.1 million) while segment EBITDA decreased by 76.1 percent to EUR 0.2 million (H1 2019: EUR 0.8 million).

The Management Board still considers the forecast for the Company's development in the full year 2020 to be realistic. However, the significant decline in steel prices could - unless the trend reverses at least partially in the further course of the year - lead to Group revenues falling slightly short of expectations, although the Company's operating performance is certainly in line with expectations. However, this will not have a negative effect on earnings. At the current point in time, the Management Board therefore continues to expect consolidated sales of EUR 125 to 135 million and EBITDA of EUR 11 to 13 million for 2020.