STÜHLINGEN (dpa-AFX) - The insulation material and paint manufacturer Sto continues to feel the effects of the weak construction industry. Turnover in the first quarter remained below the previous year's level and expectations, as the SDax-listed company announced in Stühlingen on Monday. In addition, turnover and operating earnings for 2023 fell. As in the previous year, Sto shareholders are nevertheless to receive a dividend of 31 cents per preference share with a special bonus of EUR 4.69 per share. The share price rose at the start of the week.

In the early afternoon, Sto shares in the SDax were up 4.8 percent at EUR 156.20. This means that the shares have already recovered by almost twelve percent this year. Before Russia's attack on Ukraine, however, the shares were still trading at well over EUR 200 in February 2022.

Sto expects turnover of EUR 1.79 billion for the current year. Earnings before interest and taxes (EBIT) are expected to reach EUR 113 to 138 million. According to the Group, the forecast is based on average weather conditions, an economic situation in the sales markets in line with expectations and a stable euro exchange rate.

Sto had already postponed its medium-term targets in mid-March: The turnover of EUR 2.1 billion planned for 2025 and the return on sales based on earnings before taxes of 10 percent are not to be achieved until 2027. For 2025, Sto expects a turnover of EUR 1.9 billion and a return on sales of 7.6 to 9.2 percent. Sto is aiming for 6.3 to 7.8 percent in 2024.

Last year, Sto had to contend with poor weather and high construction costs, among other things. Compared to 2022, turnover fell by 3.9 percent to EUR 1.72 billion. Sto thus achieved the forecast, which had previously been lowered twice, in which burdens resulting from the war in Ukraine and the Middle East conflict were deducted.

In addition, "unclear framework and demand conditions as well as a lack of political decisions in Germany have led to a sharp increase in uncertainty among potential building owners", the report continued. Turnover shrank more significantly in Germany than abroad.

Earnings before interest and taxes (EBIT) fell by 2.5 percent to 126.5 million euros in 2023, which was within the targeted range. The return on sales amounted to 7.4%. Cash flow (cash inflow) from operating activities rose from EUR 95.3 million to EUR 170.9 million. Earnings attributable to shareholders fell by 4.5 percent year-on-year to around EUR 86 million.

Sto plans to present its figures for the first quarter on May 8 /lfi/niw/mis