Significant recovery in business at Feintool
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Feintool International Holding AG /
Significant recovery in business at Feintool
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Feintool Group's business results for 2009/10
The Feintool Group has emerged stronger from the 2009/2010 financial year. Order
books have shown an encouraging development throughout the Group: orders
received were up by an impressive 67% to CHF 424.7 million, while the orders
backlog rose 41% to CHF 155.1 million.
With sales of CHF 373.6 million, the international technology company improved
on its prior-year turnover by over 10%. Feintool has benefited from rigorous
implementation of the restructuring measures initiated in the previous year and
from the rapid global recovery in the automotive industry. This is reflected in
the CHF 41.4 million improvement in operating profit (EBIT), which comes to CHF
3.2 million. Overall, however, Feintool is posting a net loss of CHF -2.2
million. The Board of Directors will therefore be proposing to the General
Meeting that the dividend be waived again this year.
Thanks to recently received orders, the Feintool Group is starting the new
financial year with well-filled order books. Barring any major change in the
economic situation, Feintool thus anticipates sales of CHF 390-410 million and
EBIT of CHF 12-16 million in the 2010/2011 financial year.
CEO Heinz Loosli has a positive verdict on the 2009/2010 financial year:
"We are pleased to have posted a result that exceeds our expectations. During
the year, we benefited from the global automotive recovery first in our series
parts business and then also in the capital goods sector. Following the
restructuring phase in 2009, we pursued the implementation of our strategic
projects and worked to stabilize the business so that the Feintool Group can
return to sustained qualitative and quantitative growth. In addition, I am
particularly pleased that all segments are now profitable at the operating level
and that we have a positive cash flow and stable liquidity."
Summary of financial year 2009/10
As at 30 September 2010, the order situation for the Feintool Group showed a
67.2% increase in orders received (bringing the figure to CHF 424.7 million)
while the orders backlog rose 40.9% to CHF 155.1 million; the pace of growth was
very encouraging across all segments.
At CHF 373.6 million, Feintool Group sales were a substantial 10.5% higher than
a year previously. In line with the automotive industry, the short-term series
parts business of the System Parts segment saw a speedy recovery from the outset
of the financial year.
Owing to the after-effects of the economic slowdown, however, the start to the
year under review proved particularly difficult for the late-cyclical systems
business of the Fineblanking Technology and Automation segments. Although
growing optimism in the industrial goods market pushed up the level of orders
again from the third quarter onwards, these segments were not able to equal
their prior-year sales.
By virtue of higher sales, an improved gross margin of 34.6% and strict cost
management, the Group posted a positive figure for operating profit (EBIT) of
CHF 3.2 million. Financial costs totalling CHF 10.5 million and tax expenses of
CHF 3.0 million resulted in a net loss for continuing operations of CHF ?10.3
million, though in operating terms considerable progress was made at all levels
and in all segments and regions. On balance, reversals of provisions no longer
required for the discontinued operations reduced the net loss to CHF -2.2
million.
Currency fluctuations
The weaker US dollar and euro reduced sales by CHF 13.9 million by comparison
with year-ago exchange rates. As Feintool has large production operations in
Germany, the US and Japan, these effects are for the most part offset.
Consequently, exchange rate shifts had only a minor impact on EBIT. As these
currencies were highly volatile at times, losses were incurred by the Swiss
operations in particular - these are posted in the financial result at CHF 2.2
million.
Positive trend in equity ratio
Total assets decreased by 12.4% to CHF 325.6 million. With equity at CHF 136.4
million, the equity ratio increased by 3.6 percentage points to 41.9%.
22% reduction in net debt
Cash flows from operating activities showed a strong inflow of CHF 17.8 million,
as net working capital declined by CHF 25.2 million. Investment levels remained
modest in the year under review: capital expenditure thus came to only CHF 8.2
million. As the property in Aarberg (Switzerland) was sold in the same period,
net cash flows from investing activities came to CHF -2.4 million. Free cash
flow of CHF 15.4 million was generated, thus permitting a 22% year-on-year
reduction in net debt to CHF 50.4 million.
The Feintool segments
Fineblanking Technology segment: more companies investing in fineblanking
presses again
As expected, the late-cyclical fineblanking press business was still reporting
low sales and earnings in the first half of financial year 2009/10. As of the
second half, however, its order situation improved steadily. By the end of the
financial year, renewed confidence within the industrial goods market had pushed
order intake back up to a high level.
About 30% of all orders originated in Asia. The review period saw the launch of
the newly developed XFT2500speed, an innovative servo-mechanical fineblanking
press that brings the fineblanking process greater flexibility, shorter
retooling times and higher cycle rates. The segment has thus demonstrated its
innovative power, helping to drive fineblanking forward into the future.
Sales in the year to 30.9.2010 came to CHF 69.6 million, 5.7% less than in the
previous financial year. At CHF 0.9 million, the segment's EBIT figure was back
in positive territory. Orders received came to CHF 82.5 million, representing a
substantial year-on-year increase of 149%. The orders backlog doubled in size to
CHF 31.1 million. As this figure only includes the long-term press and tools
business, it implies a guaranteed workload for around six months.
System Parts segment: dramatic recovery of series parts business since the start
of the financial year
In the fineblanked and formed series parts business, a significant recovery has
been in evidence in all markets since the start of the reporting year. Having
been scaled back in the previous year, customer inventories were built up again
across the value chain, which impacted positively on sales. Optimized capacity
utilization and the focused, efficient orientation of the sites in Japan and
Europe enabled a return to healthy EBIT margins in a short space of time.
However, the segment's overall result was badly affected by an unsatisfactory
operating result and further restructuring expenses in North America.
The start of the review period saw the US operations that had previously been
managed independently in operating terms being integrated into the System Parts
segment. The strategy was completely revised, its core element being a stronger
focus on a limited number of applications. Markets developed just as positively
in North America as in the other regions. However, the sharp increase in demand
resulted in an overload that created additional expenditures. The US operations
therefore failed to generate a satisfactory result despite significantly
improved sales. This result also reflects restructuring expenses of CHF 5.5
million with no impact on liquidity. As part of a comprehensive restructuring
plan, Feintool is modernizing key areas of its infrastructure and is sending
additional specialists from Europe and Japan. In the medium term, Feintool's aim
is for its operations in the United States to match the efficiency levels of its
other fineblanking operations.
The production facility under construction in Taicang near Shanghai, China,
means that the segment will in future be represented in the world's four biggest
automotive markets. Feintool expects series production for existing
international customers operating in China to start towards the end of the
2010/11 financial year.
Segment sales in the year to 30.9.2010 came to CHF 233.1 million, a hefty 32.4%
more than in the previous financial year. EBIT amounted to CHF 6.9 million. Due
to the faster pace of recovery in the automotive market, orders received also
showed a marked increase, rising by 73.5% to CHF 258.3 million. The orders
backlog climbed 31.2% from CHF 69.9 million to CHF 91.7 million.
Automation segment: positive annual figures from the three business units IMA,
Afag and BalTec
In automation technology, the recent very pleasing order intake at IMA and at
Afag's replacements parts business in particular ensured an improvement in the
level of business. The Automation segment is about 90% focused on the European
market and here the situation developed significantly better than expected. All
three business units greatly improved their competitiveness in the year under
review: IMA, for instance, rolled out its new Meditec rotary indexing machine,
while in the components business Afag achieved two world firsts in the field of
electric grippers and BalTec launched an improved range of machines for metal
fittings featuring higher riveting speeds.
Segment sales in the year to 30.9.2010 came to CHF 76.3 million, 19.5% less than
in the previous financial year. EBIT in the segment amounted to CHF 4.8 million.
Orders received rose on balance by 16.4% from CHF 72.1 million to CHF 84.0
million. The orders backlog increased by 24.9 million to CHF 32.3 million, a
rise of 29.6%.
The Feintool regions
In total, the Feintool Group generated CHF 202.2 million or 54.1% of external
sales in Europe (previous year: 60.4%). At CHF 90.1 million, the proportion of
US sales climbed from 20.1% to 24.1% in the year under review. Asia increased
its share from 19.5% to 21.8% or CHF 81.3 million.
The Swiss market generated sales of CHF 18.8 million, thereby lifting its share
to 5.0%. In the previous year, Swiss sales had amounted to just CHF 9.5 million
or 2.8%.
Good prospects thanks to order situation
Following the latest orders received in August/September 2010, the Feintool
Group starts the new financial year with well-filled order books. There is
already an orders backlog of six to seven months' work in the capital goods
sector. In the fineblanked parts business, we expect a small dip in sales due to
portfolio restructuring in the United States and a slight softening of demand.
In overall terms, however, the Feintool Group expects to see moderate growth.
The full benefits of ongoing efficiency improvements and cost optimization
measures have not yet been felt. These will contribute to a further improvement
in business activity in the coming year. Therefore, barring any major change in
the economic situation, Feintool anticipates consolidated sales of CHF 390-410
million and EBIT of CHF 12-16 million in the 2010/2011 financial year.
For detailed information on Feintool's results for 2009/2010, please visit
www.feintool.com/investoren/publikationen. Further information may be obtained
from Karin Labhart, Head of Corporate Communications, at any time by calling
+41 (0)32 387 51 63 or e-mailing karin.labhart(at)feintool.com.
Key financial figures in brief
+---------------------------------------------+------------+------------+------+
|Figures in CHF |30.9.2010* |30.9.2009* |Change|
| | | | |
| | CHF million| CHF million|in % |
+---------------------------------------------+------------+------------+------+
|Sales - Feintool Group | 373.6| 338.2| 10.5|
+---------------------------------------------+------------+------------+------+
|Sales - Fineblanking Technology segment | 69.6| 73.8| -5.7|
+---------------------------------------------+------------+------------+------+
|Sales - System Parts segment | 233.1| 176.1| 32.4|
+---------------------------------------------+------------+------------+------+
|Sales - Automation segment | 76.3| 94.8| -19.5|
+---------------------------------------------+------------+------------+------+
|Earnings before interest, tax, depreciation | 26.7| -11.8| |
|and amortization (EBITDA) | | | |
+---------------------------------------------+------------+------------+------+
|Operating profit (EBIT) | 3.2| -38.3| |
+---------------------------------------------+------------+------------+------+
|EBIT - Fineblanking Technology segment | 0.9| -5.9| |
+---------------------------------------------+------------+------------+------+
|EBIT - System Parts segment | 6.9| -14.9| |
+---------------------------------------------+------------+------------+------+
|EBIT - Automation segment | 4.8| -6.8| |
+---------------------------------------------+------------+------------+------+
|Net income continuing operations | -10,3| -47,7| |
+---------------------------------------------+------------+------------+------+
|Net income discontinued operations | -2,2| -67,5| |
+---------------------------------------------+------------+------------+------+
|Total assets | 325.6| 371.7| -12.4|
+---------------------------------------------+------------+------------+------+
|Equity | 136.4| 142.3| -4.1|
+---------------------------------------------+------------+------------+------+
|Net debt | 50.4| 64.8| -22.2|
+---------------------------------------------+------------+------------+------+
|Orders received - Feintool Group | 424.7| 254.1| 67.2|
+---------------------------------------------+------------+------------+------+
|Orders received - Fineblanking Technology | 82.5| 33.1| 149.0|
|segment | | | |
+---------------------------------------------+------------+------------+------+
|Orders received - System Parts segment | 258.3| 148.8| 73.5|
+---------------------------------------------+------------+------------+------+
|Orders received - Automation segment | 84.0| 72.1| 16.4|
+---------------------------------------------+------------+------------+------+
|Orders backlog - Feintool Group | 155.1| 110.1| 40.9|
+---------------------------------------------+------------+------------+------+
|Orders backlog - Fineblanking Technology | 31.1| 15.3| 103.6|
|segment | | | |
+---------------------------------------------+------------+------------+------+
|Orders backlog - System Parts segment | 91.7| 69.9| 31.2|
+---------------------------------------------+------------+------------+------+
|Orders backlog - Automation segment | 32.3| 24.9| 29.6|
+---------------------------------------------+------------+------------+------+
(* )Continuing operations only
Feintool International Holding AG
Industriering 8, CH-3250 Lyss
Phone +41 (0)32 387 51 11
Fax +41 (0)32 387 57 81
feintool-fim(at)feintool.com
www.feintool.com
Media spokesperson
Karin Labhart
Phone +41 (0)32 387 51 63
Fax +41 (0)32 387 54 16
Mobile +41 (0)79 609 22 02
karin.labhart(at)feintool.com
The press release can be downloaded from the following link:
[HUG#1468386]
--- End of Message ---
Feintool International Holding AG
Industriering 8 Lyss Schweiz
ISIN: CH0009320091;
Press Release (PDF):
http://hugin.info/100443/R/1468386/405839.pdf
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Source: Feintool International Holding AG via Thomson Reuters ONE
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Datum: 03.12.2010 - 07:00 Uhr
Sprache: Deutsch
News-ID 49365
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