EQS-News

Softing AG: Interim Statement on the 1st Quarter of 2024

EQS-News: Softing AG / Key word(s): Quarterly / Interim Statement Softing AG: Interim Statement on the 1st Quarter of 2024 (news with additional features) 07.05.2024 / 07:30 CET/CEST The issuer is solely responsible for the content of this announcement. Dear Shareholders, Employees, Partners and Friends of Softing,

We have finished the first quarter of what is not going to be an easy year. The bar is set high, especially as 2023 was an exceedingly successful year for us. Then there’s the weak economic data to consider, which is not limited to Germany either. Customers and market players alike are reporting double-digit declines in revenue. Thanks to Softing’s diversification, this situation affects us only in our North American factory automation business, though a significant share of our revenue stems from this market.

Softing generated revenue of EUR 24.2 million in the first quarter of this year – a considerable drop from the EUR 28.5 million posted for a record-breaking 2023 due to the clearing of backorders. However, if we compare it with the EUR 20.6 million achieved for the first quarter of 2022, this equates to strong growth of around 20%. Even when averaged with the prior-year figures, we can see a clear growth.

The subdued economy led to a low volume of orders, which stood at EUR 37.2 million at the end of the first quarter of 2024. This had been expected to fall short of the prior year’s record-breaking EUR 69.8 million attributable to the huge clearing of backorders. Current orders on hand are also down on the 2022 figure (EUR 48.3 million), which points to a slowdown emanating from the industrial automation business in the United States. I am happy to report that even as early as the first quarter, the Industrial segment’s European business continued to grow compared with the exceptionally strong previous year. The same can be said for our Automotive segment.

Industrial posted first-quarter revenue of EUR 16.1 million after a record-breaking EUR 22.5 million in the previous year. Operating EBIT came to EUR 0.7 million, down from EUR 4.5 million in the prior-year period. Not only the undiminished growth in our European and Asian business makes us optimistic about the remainder of the year, but major customers in the United States also expect product demand to rise steeply from mid-year onward. Even further, the acquisition funnel is better filled than ever with extensive project and product opportunities.