28.10.2009 | Austria

S&T: Third Quarter Results 2009

Positive EBIT and a confident forecast for Q4

With a positive operational result and increased gross margin, S&T again resumed its path to success in the third quarter. For the fourth quarter S&T expects the recent restructurings together with the stabilization of the order situation to become visible in the bottom line.
“The full effects of our restructuring became clearly evident in the last quarter. Despite the costs for the ongoing re-organizational measures, we were still able to increase our EBIT slightly to 0.14 million euros,” comments Christian Rosner, CEO S&T AG, with regard to developments during recent months. Compared to the same period in the previous year, staff costs had to be reduced by almost 20 % and other operating expenses by even 25 % in order to adapt to the prevailing market conditions. The latest sales figures are as follows: sales of 92.1 million euros during Q3 2009 correspond to a decrease of almost 25 percent (from 122.7 million euros in Q3 2008) in line with this year’s over-all trend in the IT sector. Sales during the first nine months of 2009 reached 283.1 million euros, 19.9 % less than the figure for the same period in 2008 (353.5 million euros).

Different results in the individual fields of business and national markets


Due to its long-term service contracts, Managed Services (MS) has also currently demonstrated stable development - sales in this area remained constant in Q3 at 25.7 million euros. The fields of Business Solutions (BS) and Enterprise Systems (ES) have again been affected by the recession in Q3 2009 and have each suffered declines in demand of around 30 % (ES) and 32 % (BS), although the earnings trend in the ES area and especially in MS was very satisfactory in many countries under the economic circumstances.

Restructuring in Japan is also going to affect figures for the last quarter 2009, although positive results are expected again in Japan by Q1 2010. In China S&T is currently preparing the partial disposal of its subsidiary, an LOI has already been signed. The Company will keep its presence in the Chinese market as a minority shareholder in a joint-venture.

Business outlook


Taking into account the group’s traditionally strong performance in Q4, the management board is forecasting total sales of 415 - 425 million euros and EBIT of approximately 4 million euros for the year 2009. Following a year of consolidation, the clear focus will again be on sales and marketing in 2010. In addition and as already announced, S&T will continue to actively pursue strategic acquisitions.