PSI gets year off to a good start thanks to high order volume from industry

  • New order volume climbs 11 % to a new record value of 78 million euros
  • EBIT increased by 20 % to 2.6 million euros
  • First US orders received in the area of software for energy grids
Performance indicators (KEUR)01 Jan.  – 31 March 201701 Jan.  – 31 March 2016Change
Revenue43,78442,589+2.8 %
EBIT2,6072,181+19.5 %
Group EBIT1,7751,396+27.1 %
Earnings per share (EUR)0.110.09+22.2 %

Berlin, 27 April 2017 – PSI Group increased its new order volume by 11 % in the first quarter of 2017 to a new record value of 78 million euros (31.03.2016: 70 million euros); the order backlog on 31.03.2017 was, at 163 million euros, 4 % above the figure for the previous year (31.03.2016: 157 million euros). Primarily thanks to growth in industrial business, group sales improved by 3 % to 43.8 million euros (31.03.2016: 42.6 million euros), EBIT improved by 20 % to 2.6 million euros (31.03.2016: 2.2 million euros), while the group net result improved by 27 % to 1.8 million euros (31.03.2016: 1.4 million euros).

Energy Management (energy networks, energy trading) attained 1 % higher sales of 15.9 million euros in the first quarter (31.03.2016: 15.8 million euros). The EBIT for the segment improved to 1.5 million euros compared to the previous year (31.03.2016: 1.4 million euros). As a result of the regulatory “shadow year”, the Electrical Grid business recorded a new order value slightly below that of the previous year but succeeded at significantly improving sales in the area of higher combined energy systems and sector coupling. The first multi-client capable management system (network control as a service) was rolled out with a pilot customer on completion. In the USA, PSI was awarded its first two orders for network optimisation software. After establishing a joint-venture with our long-term partner Gazprom avtomatizatsiya, Gas and Oil recorded a revival of new orders in Russia.

Sales in Production Management (raw materials, industry, logistics) in the first three months, with 23 million euros, were 8 % above the level for the previous year (31.03.2016: 21.3 million euros). The EBIT improved by 7 % to 1.6 million euros (31.03.2016: 1.5 million euros). The Metals and Automotive Industry businesses were able to significantly increase their volume of orders, particularly through follow-up orders from group-wide contracts with further potential. In the form of the Mining, Metals Industry, Automotive Industry and Logistics businesses, all areas of Production Management contributed towards improving sales and earnings. All products of the segment are currently being presented at the Hanover Fair 2017 as an integrated Industry 4.0 cloud-based solution.

In Infrastructure Management (transportation and security), sales decreased by 13 % to 4.8 million euros (31.03.2016: 5.5 million euros), while the EBIT improved to –0.1 million euros (31.03.2016: –0.4 million euros). Although the Public Transport business and PSI Poland were able to improve both sales and earnings, PSI in Southeast Asia recorded another slow start in hardware business. Nevertheless, PSI anticipates an improvement over the course of the year and recorded significant progress in Smart City software projects while continuing to actively push the reduction of old risks in countries with a high dependence on raw material prices.

The number of employees in the group decreased to 1,613 on 31.03.2017 (31.03.2016: 1,645). Last year’s capacity adjustment in Southeast Asia is offset by a growth initiative with new hires in Germany and other industrial countries. The cash flow from operating activities was characterised by changes in working capital and decreased to –0.2 million euros (31.03.2016: 2.9 million euros). Liquidity increased to 42.2 million euros (31.03.2016: 41.2 million euros), allowing for the proposed dividend payments, share repurchases, financing of sales during the season, and acquisitions.

The first quarter saw PSI establishing a subsidiary in Sweden whose initial focus is on distributing energy grid software and network control as a service in Scandinavia. PSI envisages major potential in both Northern Europe and North America for distributing the grid software offering many functions for stabilising networks characterised by fluctuations, capacity bottlenecks and, particularly in the USA, outages. In Production Management, the Industry 4.0 trend is increasingly evolving from an innovative topic to a real sales product.

Over the coming quarters, PSI anticipates further rollout orders from framework agreements with major electricity and gas network operators, steel companies and vehicle producers, requiring the development and expansion of teams for implementation at customers and partners.

Due to cyclical recovery by many customers and early-bird orders anticipated at the end of the year for the coming regulatory base year, management is confirming the growth targets formulated in the 2016 annual report and anticipating an operating result which is more likely to be in the upper range of the target corridor of 12 to 15 million euros.

On the basis of its own software products, PSI AG develops and integrates complete solutions for energy management (energy networks, energy trading), production management (mining, metals, automotive, mechanical engineering, logistics) and infrastructure management for transport and safety. PSI was founded in 1969 and employs more than 1,600 persons worldwide.