Gelsenkirchen, 21 November 2019, 12:50 p.m. – Masterflex SE today adjusted its forecast for the fiscal year 2019. The company now anticipates consolidated revenue in the range of EUR 79.0 to 80.0 million (2018: EUR 77.2 million). This would correspond to a growth rate of 2 to 3% (previous forecast: 3 to 6%). With regard to the adjusted EBIT margin, Masterflex now expects a range of 5 to 6% (previous forecast: 8%) for the current fiscal year.
The forecast adjustment is attributable to the recently created difficult macroeconomic conditions in Europe's industrial environment. Together with the automotive crisis, this development had a particular impact on the customers of Masterflex's important European and above all German mechanical engineering sector. The very successful growth momentum in the current fiscal year, which lasted until the end of the third quarter, did not suggest that such a significant decline in revenue could be expected. The development since the beginning of October shows such an unexpected sustainability in both revenue and order intake. The decline in revenue particularly affects the large production sites in Germany with their high fixed costs, which is why EBIT is overproportionately affected. In addition, some of the previous revenue momentum (around 1%) was currency-related.
Despite overproportional growth in recent years, the continued good business development in the white application sectors (medicine, food, pharmaceuticals, bio) cannot yet fully compensate for this effect. The same applies to the sales markets in America and Asia, which are still smaller than the European market.
The Executive Board and Masterflex management are already drawing up plans to counter the dwindling growth momentum in the industrial business with additional measures on the revenue and, in particular, cost side. The aim remains to be able to achieve the future return targets up to 2022 announced in the late summer of this year, despite the current economic downturn.