PSI with stable new orders and strong cashflow despite Corona crisis
by Hans Diederichs
Despite the emerging Corona crisis, the PSI Group, with 96 million euros in the first quarter of 2020 (March 31, 2019: 97 million euros), almost reached the record new orders of the same quarter of the previous year. The order book volume on March 31, 2020 was, at 187 million euros, 2% above the previous year's value (March 31, 2019: 184 million euros). Group sales of 50.9 million euros were also almost on a par with the previous year's figure (March 31, 2019: 52.0 million euros), although this year's sales are more strongly influenced by the energy sector. The operating result (EBIT) of 2.5 million euros was around 17% below the previous year's figure and thus in line with the forecast (March 31, 2019: 3.0 million euros). The steel crisis in Europe, Corona in China and a restructuring in Malaysia had a negative impact. The Corona crisis led to lower productive hours in March. Group net income fell to 1.5 million euros as of March 31 due to significant currency fluctuations (March 31, 2019: 2.0 million euros).
Sales in Production Management (metals, industry, logistics) in the first three months of the year amounted to EUR 22.1 million, down about 17% from the previous year (March 31, 2019: EUR 26.7 million). The segment's EBIT fell by 23% to 1.5 million euros (March 31, 2019: 1.9 million euros). The metals production business continued to suffer from the CO2 price-related steel crisis in Europe. The processing of major projects in China suffered from reduced working hours (reduction of holidays etc.) during the Corona crisis. In the USA, PSI received a major contract from a US steel producer. The weaker sales and earnings with production and logistics in Germany was offset by major contracts in Poland from the gas industry and e-commerce logistics.
Source and photo: PSI Software AG