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Turbon downgrades FY2019 expectations

August 30, 2019

Turbon AG released its interim first half-year of 2019 earnings statement and provides an outlook for the full year 2019 and subsequent years. Full-year expectations to be lower than first expected.

The Turbon Group of companies declared consolidated sales of €29.5 million ($32.6 million), for H12019. A decrease compared to the same period of the previous year, where consolidated sales were €33.7 million ($37.2 million).

€22.9 million ($25.2 million) of sales were generated by the printing division, compared to the previous year’s €28 million ($30.9 million). Sales of laser cartridges amounted to €11.9 million ($13.1 million) compared to €16.8 million ($18.5 million) in the same period of the previous year. In the electric division, sales rose from €5.3 million ($5.8 million) in the previous year to €6.2 million ($6.8 million) in the first half of 2019.

Looking at the full year 2019, Turbon expects consolidated sales to be €58-60 million ($64-66 million) whereby the printing division is expected to contribute €45 million ($49 million). The previously forecasted numbers were €60-65 million ($66-71 million) of total sales.

Turbon stated that the change to the new forecast results is due to weaker than expected sales of laser cartridges.

The earnings figures for the first half of 2019 are lower than initially predicted as a result of lower sales of laser cartridges and the provision of further one-off expenses for inventory write-offs (approx. €0.9 million ($0.99 million)); the provision for renovation work and vacancies in property assets (about €0.7 million ($0.77 million)).

Group H1 earnings before taxes were -€2.5 million (-$2.7 million) an improvement from the previous year’s period where recorded earnings were -€5.3 million (-$5.8 million).

For the full year 2019, Turbon sets out two potential deconsolidation scenarios (from the consolidated financial statements). Firstly, the deconsolidation of all European Laser cartridge activities except for activities at the Romanian site. Secondly, the deconsolidation of various Real estate activities (directly-held property Thailand, via an investment held property Hattingen and financial participation (under 50%) Property Feldkirchen).

The sale is currently not fully audited and decided so this scenario is planned in parallel as a second alternative. Within Scenario 1, Turbon expects consolidated net income for the full year 2019 before taxes of approximately -€1.9 million (-$2 million) compared to the same period in the previous year -€7.0 million ($7.7 million). Within scenario 2, due to an expected book profit from the sale of real estate, a better-consolidated result before taxes amounting to -€1.4 million (–$1.5million).

The original forecast was plus €0.5 million ($0.55 million) to €1.5 million ($1.65 million), and even if both new forecasts are below the original forecast earnings, figures are positive for the second half of the year after three years of loss, Turbon explained.

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