Provisional half-year-figures of technotrans below expectations - Annual targets confirmed

Sassenberg, July 25,2019 - Provisional figures indicate that technotrans SE achieved a consolidated revenue of EUR 102.6 million as well as a consolidated operating profit (EBIT) of EUR 4.1 million in the first half-year of 2019, and consequently fell short of expectations.

Nevertheless, the Board of Management of technotrans SE is maintaining its forecast for the 2019 financial year within the previously communicated target corridor of EUR 218 to 226 million in consolidated revenue and within EUR 12 to 16 million in consolidated operating profit (EBIT). Expectation by the Board of Management to reach these targets remains unchanged.

The weak development in the first half year of 2019 and the resulting half-year-figures is mainly due to a decline in revenue and earnings at the Meinerzhagen location. On the one hand it is attributable to the already known investment restraint in the automotive-related plastics processing industry in the first months of current financial year and, on the other to a temporary decline in productivity resulting from of the implementation of a new ERP software in the second quarter.

However, gwk's order situation has improved significantly in the recent months particularly based on new deals outside the automotive-related industry. Therefore, a noticeably stronger second half of 2019 is now expected. Regarding technotrans Group, this positive outlook is further supported by the growth markets, which again performed better than expected in the first half of the year, as well as a business performance of the other divisions in line with planning.

The Board of Management is therefore optimistic about the second half of the year. A high order level at the production plants of gwk and Reisner Cooling Solutions GmbH together with ongoing projects, especially in the context of electric mobility and the other growth markets, indicate that, from today's point of view, there will be a better business performance over the course of the year in terms of revenue and operating profit.

Figures for the first six months of the 2019 financial year will be published on August 6, 2019.