DGAP-News STS Group AG specifies outlook for fiscal year 2020
DGAP-News: STS Group AG / Key word(s): Forecast
Hallbergmoos/Munich, November 17., 2020. STS Group AG (ISIN: DE000A1TNU68), a global system supplier to the automotive industry, listed in the General Standard of the Frankfurt Stock Exchange, today specifies the outlook for fiscal year 2020 based on the latest information on business performance and following the deconsolidation of the Acoustics business segment.
Previously, the Management Board had decided to issue only a comparative forecast due to the high level of uncertainty in connection with the ongoing COVID-19 pandemic. It assumed that sales in the financial year 2020 will be significantly below the level of the previous year and a declining Adjusted EBITDA margin was expected.
As a result of the general market downturn, particularly in Europe, STS continues to expect a year-on-year decline in sales of -16.0% (305 mEUR) to -14.0% (312 mEUR) (excluding the Acoustics business segment: -8.0% (231 Mio. EUR) to -5.1% (238 Mio. EUR)) for fiscal year 2020 (2019: 363 mEUR, excluding the Acoustics business segment: 251 mEUR).
At the same time, the company expects to achieve an Adjusted EBITDA margin, adjusted for extraordinary expenses, in the range of 4.0% to 4.8% for the full year 2020 (2019: 4.9%). In the current financial year, extraordinary expenses relate to the closure of the Group headquarters in Hallbergmoos and in connection with the sale of the Acoustics business segment. The implementation of the two measures will lead to significantly improved profitability in the coming financial year.
The forecast of STS Group assumes that the increasingly positive development of customer call-offs to the previous year's level, which already started in the third quarter, will continue towards the end of the year. Moreover, it presumes that the China segment will continue its strong growth in the fourth quarter. Finally, the sale of the loss-making Acoustics business segment, which was completed at the end of October, is now being reflected. This forecast assumes that no further COVID-19 related significant restrictions on the general business development will occur.