Industrial AutomationAutomotive Electronics

Corporate News | Softing AG announces successful first half of 2019 with increase in both revenue and consolidated profit and record level of incoming orders – 2019 guidance confirmed

  • Revenue increases by 5% to EUR 41.8 million (H1/2018: EUR 39.9 million)
  • EBIT up 70% to EUR 1.8 million (H1/2018: EUR 1.1 million)
  • Consolidated profit improves to EUR 1.2 million (H1/2018: EUR 0.9 million)
  • Order intake up 15% to record level of EUR 51.1 million (H1/2018: EUR 44.4 million)
  • Orders on hand as of June 30, 2019 at EUR 24.7 million (June 30, 2018: EUR 15.6 million)
  • 2019 guidance confirmed: annual revenue of more than EUR 88 million and EBIT of around EUR 4 million expected.

Softing AG (ISIN: DE0005178008, Prime Standard) today announced its financial figures for the first six months of 2019. The positive trend of the first quarter has intensified in the second quarter of the year, lifting almost all key financials significantly above the figures recorded in the first half of 2018. In the first six months of 2019, revenue rose by around 5% to EUR 41.8 million compared with EUR 39.9 million in the first half of the previous year. This growth potential was even more apparent when looking at incoming orders and orders on hand. Incoming orders increased by 15% to EUR 51.1 million after EUR 44.4 million in the prior-year period. Orders on hand grew by almost 60% to an impressive EUR 24.7 million, up from EUR 15.6 million a year earlier. This means that for the first half of 2019, Softing AG is recording more orders than ever before in its history.

As has already been announced, earnings in particular benefited from the improved product mix in the second quarter, causing EBITDA and EBIT to increase sharply in the first half of the year. While EBITDA rose by around 69% to EUR 5.7 million (H1/2018: EUR 3.3 million), EBIT increased by around 70% to EUR 1.8 million (H1/2018: EUR 1.1 million). Accordingly, consolidated profit improved by 23% to EUR 1.2 million compared to EUR 0.9 million in the first half of 2018. As of June 30, 2019, Softing AG had cash and cash equivalents of EUR 12.2 million (June 30, 2018: EUR 8.6 million).

After extensive testing, GlobalmatiX AG entered into an agreement with a major customer in May to provide hardware and services for managing mixed-model commercial vehicle fleets. This agreement has an initial term of five years and represents the first breakthrough for GlobalmatiX AG, which we acquired in 2018. The customer's main reasons for signing this agreement with GlobalmatiX were its comprehensive capabilities and high level of security against external manipulation, and the fact that GlobalmatiX is capable of covering all aspects required to provide data within a secure cloud environment. GlobalmatiX expects to connect more than 200,000 vehicles during the contract period. This has already sent a strong signal to the market, leading to further discussions with similarly sized major customers. The high scalability of these services brings Softing significantly closer to achieving its medium-term target of a double-digit EBIT margin.

Positive outlook

Dr. Wolfgang Trier, Chief Executive Officer of Softing AG: “We have created the conditions to continue our growth in all three segments. Based on the production deadlines currently set and the major orders that have already been confirmed but cannot yet be delivered, annual revenue and EBIT will once again record their strongest growth in the second half of the year in 2019. With a healthy amount of caution, we continue to anticipate incoming orders and annual revenue of more than EUR 88 million and earnings (EBIT) of around EUR 4 million for 2019. However, this is based on the assumption that there will be no dramatic economic turbulence on a global scale. At the same time, we could also exceed our revenue and earnings forecasts if economic developments are unexpectedly positive and incoming orders remain buoyant.

Detailed financial information

The full 2019 half-yearly financial report of Softing AG is available for download at https://investor.softing.com/en/news-publications/financial-reports.html.

About Softing AG

Softing is a global management holding company. The companies of the Softing Group produce and market hardware and software for in the Automotive Electronics, Industrial Automation and IT Networks segments. They develop high-quality standard technology products and customized solutions in close cooperation with their customers. All three of Softing’s business segments operate in growth markets.

 

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