DGAP-News

STRATEC accelerates growth in first half of 2014 - Seite 2

positive financial effect, one set also to continue over the remaining
quarters of the current financial year, resulting from the termination of a
development and supply agreement announced in July 2013. Based on current
planning, this monetary item will increase the EBIT margin for the 2014
financial year as a whole by around 30 basis points.

Part of the substantial increase in second-quarter sales in percentage
terms is also due to the basis effect in regards to the backlog in
deliveries due to flood damages in the second quarter of 2013.

EBIT for the first six months of 2014 amounted to EUR 11.2 million,
corresponding to an EBIT margin of 16.3%. This further improvement in the
EBIT margin - by 260 base points compared with the first six months of 2013
- was mainly driven by the positive development in the gross margin for
high-volume systems and by growth in the volume of such systems sold. The
margin also benefited from the ongoing slightly positive development in
turnover with service parts. At EUR 9.6 million, consolidated net income
was up 47.3%, and thus substantially ahead of the previous year's figure of
EUR 6.5 million. The company generated earnings per share of EUR 0.82
(+46.4%). These figures have been adjusted to exclude a one-off item
resulting from recognition in the first quarter of expenses for the
remaining years of the term of a management board contract for a retired
member of the Board of Management. On an unadjusted basis, EBIT amounted to
EUR 10.3 million, consolidated net income to EUR 8.9 million, and earnings
per share to EUR 0.76.


Development in personnel
Including temporary employees, the STRATEC Group's total workforce of 546
employees as of June 30, 2014 remained unchanged compared with March 31,
2014 and December 31, 2013.


Project development, outlook and financial forecast
In the current year, STRATEC is focusing on achieving further major
development milestones, additional market launches, and finalizing
negotiations for new development and production contracts. Furthermore, the
expansion in the company's production and development capacities is set to
play a key role in 2014. One example here is the planned construction of a
proprietary development complex at STRATEC's location in Romania where,
depending on the relevant permits being issued, construction work should
begin before the end of the current financial year.

For 2014, STRATEC continues to expect substantial sales growth compared
with the 2013 financial year, accompanied by a slight increase in the EBIT