21st Austria weekly - S&T, FACC, RHI Magnesita (01/07/2020)

S&T: IT company S&T AG signed a contract for the acquisition of 55.5% of the German Citycomp Service GmbH including its subsidiaries in Austria and Switzerland. This concerns the 55.5% shares of the two shareholders who are no longer involved in the management of the company or will be involved in the future. The fixed purchase price for 55.5% of the shares is EUR 6 million. The remaining 44.5% of the shares, held by the remaining managing partners, are subject to mutual option agreements depending on the future EBITDA results. The transaction is expected to be completed in the third quarter of 2020. With its broad customer structure, the around 300-employee strong company generated approximately Euro 38 mn in sales and positive net results in the financial year 2019. In recent months, the company has suffered from declining sales due to the Corona crisis and the shutdown of key customers, although the decline in sales can be regarded as temporary.  Hannes Niederhauser, CEO of S&T AG: "Citycomp is a great company, which is temporarily suffering from declining sales and capacity utilization problems due to the Corona crisis but will soon be able to return to earlier results. Through this acquisition, we will become an IT service provider with a nationwide presence in Germany and will be able to broaden our customer base and thus also better serve our existing customers".
S&T: weekly performance: 0.69%

FACC: Aerospace supplier FACC AG redeemed the corporate bond (ISIN: AT0000A10J83) issued in 2013 for Euro 90 mn on 24 June 2020. In addition to existing syndicated credit lines, the basis for this was a promissory note loan for EUR 70 million issued in July 2019. Practically at the same time as the bond was repaid on time, negotiations were concluded on a new additional financing line with a volume of Euro 60 mn as part of the COVID-19 assistance of the Austrian Kontrollbank (OeKB). In order to prepare itself even better for the serious effects of the pandemic on the aviation and aerospace industry, FACC recently defined an additional "corona savings program" of Euro 15 mn, which is also already being implemented. In addition, FACC is planning talks with the core banks in fall about the temporary adjustment of the current syndicated financing to the changed conditions caused by COVID-19. CFO Aleš Stárek: "With all these measures to strengthen our liquidity, we are also improving our starting position to overcome the Corona crisis. A further positive factor in this regard is our solid equity ratio, which we would like to maintain by waiving the dividend payment for the 2019 financial year".
FACC: weekly performance: -3.17%

RHI Magnesita: RHI Magnesita, global supplier of refractory products, systems and solutions, provided an update on current trading and measures being taken in response to the COVID-19 pandemic, ahead of the publication of its Half Year Results on 5 August 2020. According to the company, there has been an unprecedented slowdown in customer activity and a significant fall in demand in May and June. This effect has caused a material drop in RHI Magnesita's revenues across both the Steel and Industrial divisions in the second quarter (down almost 20% versus Q1 2020). Within the business units, Cement and Steel MEA/Asia have remained resilient, offset by further weakness in Steel Europe, Steel South America and Steel India. Activity levels are likely to remain subdued through July and August, with limited visibility beyond this period. Against the challenging backdrop of COVID-19, mitigating actions continue to be taken to minimise the financial impact, and the business has moved swiftly to implement cost management and cash preservation measures. These include, the temporary closure of three plants in Europe and one plant in Mexico, the introduction of short time working arrangements in some plants, the deferral of Euro 45 n of capital expenditure in 2020, no 2019 final dividend being paid, and other fixed cost reduction actions. These measures have resulted in the successful delivery of further short-term cost savings in Q2 2020. The Group is continuing to progress its longer-term strategic initiatives. In particular, management is well advanced in lowering non-operational costs, reducing the scale of the first three levels of management by 20%, effective 1 August 2020; and has identified opportunities to extend the Group's Production Optimisation Plan, which will increase the previously anticipated Euro 40 mn of EBITA benefits, due by 2022.
RHI Magnesita: weekly performance: 2.91%

(From the 21st Austria weekly https://www.boerse-social.com/21staustria (01/07/2020)

Christian Drastil: Wiener Börse Plausch

Wiener Börse Party #637: Egalite Addiko und Marinomed, AT&S nach 2 Monaten zurück, 19 Jahre RBI an der Börse, Strabag top

Bildnachweis

1. FACC Supplier Award: Supplier Awards in Gold, Silber, Bronze und Special Performance Award: Der Vorstand, das Einkaufs- und Qualitätsmanagement mit dem begehrten FACC Supplier Award in Gold; © FACC/Gortana

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