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Turbon Q1 results – reorganisation on track

May 31, 2017

Earnings fall, but reorganisation on track as US business stabilises and results are mostly positive. 

In their Q1 report Turbon continues to reorganise the group to reduce costs in their “traditional business” while creating growth opportunities across the board and have stabilised the dealer business in the US and reduced costs with the closure of their Mexican production facility that was part of the ILG acquisition.

Revenues were €25.4 million ($28.36), a decline of €0.5 million ($0.558 million) on €25.9 million ($28.92) revenues from the same period last year. EBIT  declined €0.6 million ($0.67million) on the previous year’s figure of €1.7 million ($1.90million) with a decrease of €0.4 million ($0.45 million) from ordinary business. The group net profit reduced to EUR €0.3 million ($0.34 million) was lower than last year’s figure of EUR €1.1 million (£1.23). The company said that the new developments in the traditional business and the ongoing reorganisation “would need to see a return to the usual result regions by the second half of the year”.

Turbon also said that there was a drop in revenues associated with the closure of two locations which will occur in the second quarter 2017 and these would amount to €1.6 million ($1.79 million) in the first quarter. The company said that these figures were a result of “high restructuring costs in the US, the decline in bank borrowing continued in the first quarter” but that despite this there were hardly any changes in the “most important balance sheet items.”and that there was positive news from outside the declining traditional business primarily “the result of investments in the MPS business in both Europe and the US where we are already achieving positive earnings figures and continue to see good opportunities for growth. In the current year we are expecting a turnover contribution of approximately 23 million euros ($25.68 million) from this area with an increasing trend”.

The company also reported that the new cabling technologies division that develops and manufactures ready-to-connect technical connection solutions used in special machines like construction, medical-technical equipment and even in special vehicles, saw Q1 figures above the plant numbers and expect this trend will continue with the full year 2017 forecast of approx. €3.5 million ($3.91 million) and Q4 sales expected to be more than €1.0 million ($1.12 million).
 

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