DGAP-News: RATIONAL AG: Rational AG grows successfully in 2019 - Impact of coronavirus on 2020 not predictable at present, therefore no forecast is possible - Long-term prospects remain positive
DGAP-News: RATIONAL AG
/ Key word(s): Annual Results
Press release Rational AG grows successfully in 2019 - Impact of coronavirus on 2020 not predictable at present, therefore no forecast is possible - Long-term prospects remain positive - Successful fiscal year 2019 with 8 percent sales revenue growth - Precautionary measures due to coronavirus are hitting some Rational customers hard - Forecast for 2020 not possible - Long-term prospects continue to be assessed as positive - Amount of dividend proposal of 10.70 euros per share will be reviewed Fiscal year 2019 Asia, which saw a rise of 14 percent, was a key growth driver, while North America also made an above-average contribution to growth with a rise of 11 percent. The strength of a number of foreign currencies, particularly the US dollar, had a positive impact on sales revenues. Growth after adjustment for exchange rate movements was just under 7 percent. Earnings before interest and taxes (EBIT) amounted to 223 million euros (2018: 205 million euros) and the EBIT margin at 26.5 percent (2018: 26.4 percent). Production and operating costs decreased slightly disproportionately to sales revenues in 2019. The EBIT margin after adjustment for exchange rate movements was just under 26 percent. Rational created 145 new jobs worldwide in the last fiscal year. At just under 40 million euros, investment in 2019 was at the same high level as the previous year. Precautionary measures due to coronavirus are hitting some Rational customers hard - Production has not been interrupted - Cost-cutting programs up and running The activity of the Rational sales force is severely curtailed by the official precautionary measures. Visits to end customers and product demonstrations in person are no longer possible and appropriate. End customers are deferring investments that are not absolutely necessary. Rational is helping reliable business partners by easing the terms of payment for them in an acceptable manner and on a case-by-case basis reflecting their situation. It still has a high degree of insurance cover for its receivables and its credit insurers have confirmed that defaults as a result of the coronavirus crisis are covered. To maintain the company's robust financial situation, a strict cost-cutting program throughout the Group was launched some weeks ago and a hiring freeze has been imposed. Measures have been taken to keep personnel costs down by reducing overtime and asking employees to use up their remaining leave, as well as to take holiday leave. The company is examining the possibility of and preparing for short-time working in countries that provide for this instrument so that it can be implemented without delay if and when necessary. Rational's two production facilities at Landsberg am Lech and Wittenheim will maintain their output so that customer orders can be fulfilled on time. The company has been able to ensure the supply of components since the outbreak of the coronavirus crisis in China thanks to very great efforts. "We are proud of the dedication of our U.i.U.(R), our Entrepreneurs in the Company, all of whom are working energetically to help Rational overcome these tough times well and ensure we are also there for our customers in these times. They deserve a big thank you!" emphasises Stadelmann. Rational is complying with local official safety regulations on safeguarding employees' health at all its locations. Fortunately, no Rational employee anywhere in the world has tested positive for COVID-19 to date. Long-term prospects assessed as positive That is why the company will continue its long-term initiatives in 2020, albeit with great prudence and adapting them if necessary. If the intended plans are not discontinued or delayed, the company's management therefore expects a level of investment on a par with that of the previous year. Annual General Meeting on a significantly reduced scale
Editorial note: The company's principal objective is to offer maximum customer benefit at all times. Rational is committed to the principle of sustainability, which is expressed in its corporate policies on environmental protection, leadership, job security and social responsibility. Numerous international awards bear witness to the high quality of the work done by Rational's employees year for year.
24.03.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. |
Language: | English |
Company: | RATIONAL AG |
Siegfried-Meister-Straße 1 | |
86899 Landsberg a. Lech | |
Germany | |
Phone: | 0049 8191 327 2209 |
Fax: | 0049 8191 327 722209 |
E-mail: | [email protected] |
Internet: | www.rational-online.com |
ISIN: | DE0007010803 |
WKN: | 701080 |
Indices: | MDAX |
Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart, Tradegate Exchange |
EQS News ID: | 1004973 |
End of News | DGAP News Service |
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1004973 24.03.2020
Rational AG Stock
With 0 Sell predictions and 2 Buy predictions the community sentiment towards the Rational AG stock is not clear.
However, we have a potential of -4.95% for Rational AG as the target price of 854 € is below the current price of 898.5 €.