Company Announcement no 8 – 2019
Interim report – Q3 2018/19
Full-year guidance for 2018/19 maintained
The Board of Directors of Roblon A/S has today considered and approved the interim report for Q3 2018/19
Summary:
• Order intake for Q1-Q3 2018/19 of DKKm 204.2 (DKKm 178.2). For Q3, the order intake was DKKm 72,3 (DKKm 96,2).
• Order book at 31 July 2019 of DKKm 83.1 (DKKm 71.4).
• Revenue of DKKm 173.0 (DKKm 156.9). Q3 revenue amounted to DKKm 60.8 (DKKm 48.4).
• Operating loss (EBIT) of DKKm 40.1 (a profit of DKKm 5.9). For Q3, EBIT was a loss of DKKm 3.1 (a loss of DKKm 4.9).
• Loss before tax of DKKm 37.3 (a profit of DKKm 8.2). For Q3, the loss before tax was DKKm 2.3 (a loss of DKKm 4.2).
• Loss for the period from continuing operations of DKKm 29.1 (a profit of DKKm 6.4).
The performance for the first three quarters of 2018/19 was adversely impacted by an overall loss of DKKm 26 on a project contract with wind turbine manufacturer Senvion. Roblon has entered into a standstill agreement with Senvion, under which Senvion acknowledges claims in an amount equivalent to USDm 3.6 (approx. DKKm 24.0), provided that Roblon refrains from further legal action until 4 October 2019. For now, the outcome for Roblon of this agreement is subject to considerable uncertainty, and in its guidance for 2018/19 Management has therefore not included the USDm 3.6 in acknowledged claims.
The performance for Q1-Q3 was also affected by unsatisfactory profitability for the FOC product group due to an inexpedient production set-up. The Group has identified and launched initiatives which are expected to lift profitability considerably over the coming 6-12 months. The product mix development adversely affected Roblon’s results before tax for
Q1-Q3 2018/19. However, for Q3 2018/19 seen in isolation, the product mix effect was positive.
For Q3 2018/19, Management forecast revenue of around DKKm 69 and a profit of around DKKm 0. The lower-than-expected revenue was explained by a few orders that could not be effected due to a global shortage of a critical raw material. Roblon stocked up on this raw material in July and August.
Outlook for 2018/19:
At the end of Q3 2018/19, Management maintains its full-year guidance for 2018/19. Management forecasts revenue of around DKKm 270 (DKKm 221.8) and a loss before tax of around DKKm 20 (a profit of DKKm 9.6).
In connection with the publication of the interim financial statements for H1 2018/19, Management forecast Q4 revenue of around DKKm 88.8 and a profit of around DKKm 15. Management's revised Q4 forecast is revenue of around DKKm 97 and a profit before tax of around DKKm 17.3. Of the expected DKKm 97 revenue for Q4, some DKKm 83 was covered by the existing order book at the end of August 2019 to be executed in Q4 plus revenue realised in August 2019. The remaining approx. DKKm 14 is expected to be realised through the September and October order intake, primarily in the FOC product group.
Frederikshavn, 11 September 2019
Roblon A/S
Jørgen Kjær Jacobsen Lars Østergaard
Chairman of the Board Managing Director and CEO
Enquiries regarding this announcement should be addressed to:
Managing Director and CEO Lars Østergaard, tel. +45 9620 3300
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