S&T AG reports strong first half of 2017

Freitag 04. August 2017

Austria

Sales nearly double to EUR 381.4 million (HY1/2016: EUR 196.4 million)
EBITDA rises strongly to EUR 27.2 million (HY1/2016: EUR 13.1 million)
Order backlog climbs to EUR 462.8 million (December 31, 2016: EUR 305.7 million)
Kontron continues to deliver profits

S&T AG (www.snt.at) is reporting strong growth in both the second quarter and first half of 2017. Due to the consolidation of Kontron AG, its sales rose more than 90% in the first half of 2017 to EUR 381.4 million (PY: EUR 196.4 million). Sales for the second quarter of 2017 came to EUR 198.6 million, as opposed to EUR 100.0 million in the previous year's period. Gross margin increased from the first half of 2016's 34.8% to 2017's 38.3%. This primarily was due to the alterations made in the company's product mix, which now features high-value IoT solutions.

EBITDA developed highly positively during the first half of 2017, rising from the previous year's EUR 13.1 million to EUR 27.2 million. The second quarter's EBITDA increased from 2016's EUR 6.8 million to 2017's EUR 15.0 million. This caused consolidated income to rise correspondingly, with its increasing from the first half of 2016's EUR 6.6 million to 2017's EUR 9.2 million. The second quarter's consolidated income climbed from 2016's EUR 3.4 million to 2017's EUR 5.3 million. The company's good prospects for the future manifested themselves in the order backlog, which staged further growth, rising from December 31, 2016's EUR 305.7 million to June 30, 2017's EUR 462.8 million.

The positive development of business has yielded a comfortable amount of liquidity. As of June 30, 2017, the company's liquid funds amounted to EUR 101.2 million. Its net cash position came to EUR 3.2 million (March 31, 2017: EUR 16.4 million).

Repeating its performance of the first quarter, Kontron delivered profits in the second quarter, as foreseen by corporate plans. The entry into the corporate register of the merger of Kontron AG into S&T Deutschland Holding AG is expected to take place in August 2017. The focus is now on completing the integration of Kontron AG into the processes of the S&T Group. This integration is to yield improvements in earnings of some EUR 8 million a year. In addition, technology-related synergies are to be rapidly exploited. This will facilitate S&T AG's strategy of becoming the leading supplier on the Industry 4.0 market.

The satisfactory results achieved by S&T in the first half of 2017 are causing its management to confirm its forecasts for financial year 2017 of registering sales ranging between EUR 860 - 890 million, and an EBITDA of more than EUR 50 million. S&T is maintaining its sights on breaking the EUR one billion mark in sales in financial year 2018!