DGAP-Ad-hoc: First Sensor AG / Key word(s): Profit Warning
First Sensor's Shares: ISIN DE0007201907 Ι WKN (German Securities Identification Number) 720190
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart
First Sensor: Non-recurring effects result in correction of earnings forecast
* EBITDA forecast for 2015 lowered from EUR15-17 million to EUR12-14
Berlin, October 12, 2015 - First Sensor AG has adjusted its EBITDA forecast for the current fiscal year from EUR15-17 million to EUR12-14 million. Operating business is continuing to develop very positively and stably. For this reason, First Sensor AG is increasing its previously forecast guidance for sales from EUR132-134 million to up to EUR136 million.
The adjustment of the forecast for 2015 is attributable to two non-recurring earnings effects during the third quarter and the inclusion of expenses arising from optimized quality and risk management. These are the result of the consistent implementation of First Sensor AG's successful strategic realignment in the third quarter.
As part of the strategic concentration of production capacity at profitable units, the location in Singapore is being closed. Ongoing production will be divided between the existing German locations, thus achieving very good capacity utilization and saving costs. First Sensor expects to save around EUR750,000 per year starting from 2016. This will be offset by the non-recurring closure costs of around EUR1 million. The company has taken precautions to ensure that it can continue to serve the strategically important Asian market reliably in the future.
The strategic realignment toward high-growth markets and their higher-margin business segments led to the recognition of a non-recurring valuation allowance of around EUR1.4 million in the Group's inventories in the third quarter. This was attributable to inventory productions from a wide range of areas from the past, whose remaining stocks have no longer been part of the new, targeted marketing and sales concept since 2014.
With the integration and the aim of clearly positioning the company as a quality provider in a higher-margin environment over the medium term, the Group also began to develop a sophisticated, Group-wide risk and quality management system. Owing to the higher transparency and a redefined risk assessment, additional quality risks have already been identified and taken into account. The expansion of risk and quality management will be continued on an ongoing basis.
First Sensor AG
Information and Explanation of the Issuer to this News:
About First Sensor AG
12.10.2015 The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
|Company:||First Sensor AG|
|Phone:||+49 (0)30 63 99 23-760|
|Fax:||+49 (0)30 63 99 23-719|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart|
|End of News||DGAP News Service|