JOST Werke AG: JOST records strong Q3 results and raises forecast for the 2017 fiscal year

Preliminary results for the third quarter 2017: JOST records strong Q3 results and raises forecast for the 2017 fiscal year
 

- Sales grew by 9% to a level of EUR 533 million in the first nine months

- Adjusted EBIT grew by 24% to EUR 64 million

- Net debt reduced substantially to EUR 123 million

- 2017 outlook raised: High single-digit growth rate in terms of sales and moderate double-digit growth rate for adjusted EBIT
 

Neu-Isenburg, 23 October 2017. JOST Werke AG ("JOST"), a leading global producer and supplier of safety-critical systems to the truck and trailer industry, achieves strong results during the first nine months of 2017 and raises its full year guidance.

Strong sales growth in the third quarter

In the third quarter of 2017, JOST's total sales rose by 15% to EUR 171.5 million, compared to the same period of the previous year (Q3 2016: EUR 149.4 million), according to preliminary and unaudited results. Main growth driver was a stronger than anticipated increase in sales in the Asia, Pacific and Africa (APA) segment as high demand in China continued uninterrupted and sales in other markets in the region grew stronger than expected, offsetting the usual overall seasonal slowdown of the third quarter. In the third quarter, sales in APA grew by 59% to EUR 37.0 million (Q3 2016: EUR 23.2 million). In North America, JOST benefitted from the recovering truck market and increased sales by 8% to EUR 30.1 million (Q3 2016: EUR 27.9 million). Sales in Europe expanded by 6% amounting to EUR 104.3 million (Q3 2016: EUR 98.2 million).

In line with this development, JOST's total sales in the first nine months of 2017 grew by 9% to EUR 533.3 million (9M 2016: EUR 487.0 million). During the same period, sales in the APA segment rose by 47% to EUR 108.7 million (9M 2016: EUR 73.9 million). In North America, JOST managed to increased sales by 6% to EUR 91.7 million (9M 2016: EUR 86.5 million) during the first nine months of 2017, while Europe grew in line with expectations by 2% to EUR 332.9 million (9M 2016: EUR 326.6 million).

"We are pleased with the further acceleration of sales growth in our APA region during the third quarter, which offset the usual seasonal slowdown. This combined with the positive performance in our other regions and further efficiency gains delivered a strong third quarter. The successful development in the first nine months thus encouraged us to raise our outlook for the full year," said Lars Brorsen, CEO of JOST Werke AG.

Further increase in profitability

On back of the strong sales performance, earnings before interest and taxes (EBIT), adjusted for exceptional items and PPA effects, also increased significantly by 38% to EUR 19.5 million in the third quarter 2017 (Q3 2016: EUR 14.1 million). Likewise, in the first nine months, JOST's adjusted EBIT rose by 24% to EUR 63.8 million (9M 2016: EUR 51.5 million). This positive result is mostly due to general efficiency improvements and the strong growth in the APA segment's Q3 sales at favorable margins.

Based on the successful capital increase of EUR 131.6 million as part of the stock listing in July 2017 and the continuous high cash conversion, JOST reduced net debt substantially to EUR 123.3 million as of 30 September 2017 (30 Sep. 2016: EUR 280.8 million), further strengthening its balance sheet.

Christoph Hobo, CFO of JOST Werke AG, commented: "We continue to make progress with our general efficiency improvements resulting in margin expansions and strong EBIT growth. I am also pleased with our positive cash generation on the back of disciplined Working Capital management, significantly reducing our leverage."

JOST raises outlook for the full year

Based on this performance and taking into account the expected development for the remaining months of 2017, JOST increases its full year guidance. The Management Board now expects fiscal year 2017 sales to grow at a high-single digit rate (previous forecast: mid-single digit growth rate) and adjusted EBIT to grow at a moderate-double digit rate (previous forecast: high-single digit growth rate), compared to the fiscal year 2016.

On 27 November 2017, JOST will present its final results for the third quarter and the first nine months of 2017.

Contact:

JOST Werke AG
Romy Acosta
Senior Manager Investor Relations
T: +49 (0)6102 295-379
romy.acosta@jost-world.com
 

About JOST: JOST is a leading global producer and supplier of safety-critical systems to the truck and trailer industry. The Company offers branded quality products clustered in three systems: Vehicle Interface (focusing on products required to operate a commercial vehicle combination of trucks and trailers such as fifth wheels and landing gears), Handling Solutions (including container technology and hydraulic cylinders products) and Maneuvering (focusing on truck and trailer axles and forced steering). As the number one supplier of fifth wheels and landing gears globally, JOST is the market leader for Vehicle Interface systems. JOST's global leadership position is driven by the strength of its brands, by its long-standing client relationships serviced through its global distribution network as well as by its efficient and asset-light business model. The Company's core brands "JOST", "Rockinger", "TRIDEC" and "Edbro" are well-recognized in the industry and highly regarded for their quality and continuous innovation. With its global distribution network and production facilities in thirteen countries across five continents, JOST has direct access to all major truck and trailer manufacturers and relevant end customers. JOST currently employs about 2,700 members of staff worldwide.