Business development stabilised

Growth expectations confirmed for 2010

(lifePR) ( Landsberg am Lech, )
In the first quarter RATIONAL posted sales of 72.6 million euros, and thus reached the previous year's level (73.3 million euros). This development reflects a further stabilisation of our business.

"A seasonally unusual concentration of large orders in the first quarter of 2009 must be taken into account in comparison with the previous year. If the effect of this is eliminated, we would already have grown significantly in the first quarter," explains Dr. Günter Blaschke, CEO of RATIONAL AG.

Europe and the Americas are on course for success

One welcome sign is the improving trend in Europe and the Americas. In Europe, excluding Germany, sales revenues were up by 4 percent. In the Americas, sales grew by no less than 12 percent. In Germany, the biggest individual market, business has stabilised at the previous year's level, while in Asia, as a result of the special seasonal factor in the first quarter of 2009, RATIONAL was faced with a 23 percent fall.

Earnings up by 12 percent

In the first quarter of 2010, the gross profit was 42.8 million euros and reached a margin of 59 percent, comparable to the previous year's figure (43.2 million euros). Thanks to the cost reductions in 2009 and further increases in efficiency, EBIT rose by 1.6 million euros or 11 percent to 16.8 million euros compared to last year's figure of 15.2 million euros. The EBIT margin of 23.2 percent is well above the previous year's figure of 20.7 percent. Earnings after taxes quoted at 12.4 million euros, likewise 12 percent up on the previous year (11.1 million euros).

Growth expectations confirmed for 2010

"RATIONAL has put everything in place for success in 2010. We have superior products, very good customer loyalty, a sound business model, and an excellent underlying financial position. Nevertheless, risks remain in regards to the further development of the global financial sector in particular. Against this backdrop and the business development up to now, we expect a modest growth in sales for the whole year 2010," says Dr. Blaschke.
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