PSI with Stable New Orders and Sales Also in Third Quarter
by Hans Diederichs
Sales just about at level of previous year at 158.1 million euros
Despite the effects of the corona crisis, the PSI Group has, with 178 million euros, almost reached in the first nine months of 2020 the record new orders of the same period in the previous year (30 September 2019: 182 million euros). The order book volume on 30 September 2020 was, at 159 million euros, slightly above the previous year's value (30 September 2019: 156 million euros). Group sales of 158.1 million euros also almost matched the previous year's figure (30 September 2019: 159.7 million euros) and, as in the first half of the year, was greatly influenced by the energy business. The EBIT of 8.9 million euros was 15.3% below the previous year's figure (30 September 2019: 10.5 million euros) and thus above the guidance from March 2020 (reduction of 20%). This includes negative currency effects and risk provisions, including for personnel matters and payment risks. Group net income decreased to 6.0 million euros (30 September 2019: 7.1 million euros).
Energy Management (energy grids, energy trading, public transport) achieved in the first nine months approximately 5% higher sales of 85.0 million euros (30 September 2019: 81.0 million euros) and a 10% lower EBIT of 4.0 million euros (30 September 2019: 4.4 million euros). [...]
Sales in Production Management (metals production, industry, logistics) in the first nine months were 7.1% below the previous year's value at 73.1 million euros (30 September 2019: 78.7 million euros). The segment's EBIT decreased by more than 11% to 6.2 million euros (30 September 2019: 7.0 million euros). The automotive segment is still suffering from the consequences of the diesel and corona crisis. Nevertheless, with the production control system based on the PSI platform, it has been possible to win orders from electric vehicle producers, automotive parts suppliers and caravan manufacturers. The metals production business is coping with the steel crisis and corona period with growing new orders from North America, China and Russia with stable earnings. The logistics software benefited from the boom in e-commerce logistics in Poland and Russia, although business in the German market was somewhat sluggish. In Poland, PSI continued to record very strong new orders and good results. Poland is particularly important as a test market for PSI's generic App Store and multi-cloud products. PSI multi-cloud products can be delivered in seconds to all common public clouds, the private clouds of corporate customers or even on premise. The software can also be provided in the PSI cloud. The adaptation to individual customer requirements, often tens of thousands of parameters for industrial customers, is carried out after delivery with easy-to-use software tools such as PSI-Click-Design and Business Process Management. [...]
Against the background of the lockdown decided for November, the Management Board intends to stick to the guidance given in March (slight weakening of sales and an up to 20% lower operating result), although the current course of business indicates a better development.
Starting in 2021, PSI intends to continue the margin increases and growth of the previous years (until 2019). For 2021, the management expects a market recovery and in the course of the year even a slightly excessive demand due to the customers' catching up in 2020 on equipment investments that were not made. With advanced products and market-leading functions, PSI will continue to make an indispensable contribution to network utilization, network reinforcement, network stabilization, green power integration and transportation transition in Central Europe.
Source and photo: PSI Group