NECKARSULM (dpa-AFX) - The IT service provider Bechtle continued to feel the caution of medium-sized customers in the third quarter. Business was particularly slow in online trading. In the software and service business, however, as well as with public and large customers, things went more smoothly, as CEO Thomas Olemotz said on Friday. The Neckarsulm-based company also recorded a high margin and a significant increase in incoming orders. As expected, the management confirmed the annual forecasts. However, the MDax-listed share fell sharply after the start of trading.

In a weak stock market environment, the share lost 5.6 percent to EUR 42.89 after several days of good trading. The share price has gained almost 30 percent this year, although it also came under significant pressure last year due to the skepticism surrounding IT stocks. At the peak of the coronavirus upswing in the IT sector in fall 2021, the share price was still at almost 70 euros. The company is currently worth around 5.5 billion euros on the stock market.

The good order development supports Bechtle's future prospects, and the cash inflow is also positive, according to one trader. Although Bechtle failed to meet market expectations in terms of revenue, the pre-tax result was as expected, wrote Baader Bank analyst Knut Woller. In the fourth quarter, however, revenues will have to pick up again in order to achieve the annual targets.

Total turnover in the third quarter rose by one percent year-on-year to 1.48 billion euros. While business with the installation and management of IT systems grew, the online trade in IT components continued to record losses. According to Bechtle, the above-average level of IT investment by customers during the coronavirus pandemic and the tense situation with an uncertain economic outlook are currently causing SMEs in particular to shy away from major expenditure on IT renewal.

The situation is different in the system house business, where Bechtle itself sets up and operates entire IT networks for companies and public authorities and also sells the software for the systems. Demand from public-sector clients and major customers remains high, the company said. Demanding digitization projects for the conversion of IT architectures in particular are stimulating business.

The order intake gives CEO Olemotz some confidence - even if there was a lack of positive economic impetus overall, as he said. Orders grew by a good 18 percent in the quarter. "The acquisitions of recent months have further strengthened our position in the market and further improved our competitive position in Europe," he added.

The company aims to further increase revenues and pre-tax earnings "significantly" over the year as a whole - at Bechtle this means an increase of between five and ten percent. After nine months, earnings are still within the range with a good six percent increase despite the poor third quarter.

In terms of earnings before taxes, Bechtle achieved an increase of a good six percent to 93.9 million euros in the quarter. The corresponding margin was surprisingly high with an increase of 0.3 percentage points to 6.3 percent. On balance, Bechtle increased earnings after taxes by slightly more than five percent to just under 67 million euros.

At the end of September, Bechtle had 14,840 employees, a good thousand more than a year earlier. The company has over 100 locations throughout Europe and is also growing continuously through smaller acquisitions - without these, the increase in the workforce would only have been about half as large. A good third of the shares in Bechtle belong to the family of co-founder Gerhard Schick and his foundation./men/lew/mis