New orders drop 21.8% for Schuler
The Schuler Group says it is still on course to deliver business targets despite revealing a heavy fall in new orders.
The business, announced today (14 May), a slight increase in sales and earnings for the first six months of the current fiscal year
In the period from October 2012 to the end of March 2013, consolidated sales rose by about 1% to €586.1 million driven mainly by business in Germany and the Americas.
Over the same period, earnings before interest, taxes, depreciation and amortization (ebitda) increased by 5.2% to €58.1million.
However, new orders declined by 21.8% to € 601.5 million (prior year: € 768.7 million).
But Schuler chief executive Stefan Klebert says on basis of an order backlog of €1.13billion, he “hopes to be able to reach our targets for the year as a whole.”
“The ebitda margin amounted to 9.9% and is thus on target for the current year, the company is aiming for a full-year return on sales, ebitda margin, of almost 10%.
“Sales are expected to reach about € 1.2billion. However, Schuler has noticed a slowdown in market demand and utilization of its capacities is falling in certain areas.
“Our increased activities in China will be just as important for these efforts as the tapping of other growth markets.
“By the end of July 2013, Schuler will have tripled its production capacities in China.”
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