Annual Results 2010
(Thomson Reuters ONE) -
Conzzeta AG /
Annual Results 2010
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The issuer is solely responsible for the content of this announcement.
Conzzeta: marked improvement in revenues and profits
Zurich, March 30, 2011. - In an improved economic environment, the Conzzeta
Group was able to increase revenues and profit for the 2010 business year. All
the industrial business units grew compared with the previous year. Consolidated
net revenues rose by 10.1% to CHF 1 051.9 million (previous year: CHF 955.2
million). In local currencies and after adjustment for divestment effects, the
growth amounted to 14.7%. Strong sales growth was reported in Asia, while the
development in Europe and North America was less pronounced. Thanks to the
volume growth and cost reductions in the previous year, the operating result
(EBIT) rose significantly, reaching CHF 56.9 million (previous year: CHF -1.4
million), despite the negative currency effects. In view of the improved
economic situation, the Board of Directors is proposing a one-third increase in
the dividend.
In 2010, there was a marked recovery in demand for capital goods and industrial
products, bringing a tangible improvement in the economic environment of the
Group. This enabled the Conzzeta Group to increase consolidated net revenues to
CHF 1 051.9 million, a rise of 10.1% over the previous year (previous year: CHF
955.2 million). After adjustment for negative currency translation effects of
3.6% and divestment effects of 1%, the growth amounted to 14.7%.
All the industrial business units generated increased sales. The strongest sales
growth was recorded in the machinery and systems engineering businesses, which
were hardest hit by the slump in demand the previous year due to the economic
crisis. Developments in the different market regions were variable. In Europe
and in North America, the recovery was mostly slow and varied from region to
region. By contrast, Asia and other growth markets saw an early return to high
growth dynamics. With sales growth of 53.9% to CHF 242.1 million, the Asia and
Pacific market region increased in importance for the Group. The region's share
in overall Group revenues grew to 23% (previous year: 16.5%).
The Group's economic environment was affected by changes in the exchange rate
situation. The parity of the Swiss franc against the weak euro and US dollar had
a particular impact on companies exporting from a Swiss base, with a negative
overall impact on consolidated revenues and the Group result.
The combined effect of volume growth and the previous year's measures to reduce
the cost level enabled the Conzzeta Group to make a clear return to operating
profit. The operating result (EBIT) improved by CHF 58.3 million to CHF 56.9
million (previous year: CHF -1.4 million). This equates to an operating margin
of 5.3%.
The Group result of CHF 51.5 million (previous year: CHF 3.3 million) contains
an extraordinary profit from the sale business activities and properties. The
cash flow from operating and investment activities (free cash flow) was CHF
17.6 million (CHF 141.8 million). Cash, cash equivalents and securities held by
the Group increased by CHF 54.9 million to CHF 510.9 million (previous year: CHF
456.0 million).
The Group is solidly financed, with an equity ratio of 76.3% (previous year:
78.0%). In view of the improved economic situation, the Board of Directors is
proposing to the Annual General Meeting of Shareholders, to be held on April
28, 2011, that the dividend be increased by one third to CHF 40.00 (previous
year: CHF 30.00) per bearer share and CHF 8.00 (previous year: CHF 6.00) per
registered share.
Business units
The Sheet Metal Processing Systems business unit (Bystronic) increased net
revenues by 15.4% to CHF 410.9 million (previous year: CHF 356.1 million).
Adjusted for currency translation effects, the increase was 19.3%. While Asia
experienced a strong growth trend early in the year, the recovery in Europe and
the USA was hesitant and did not gain momentum until the second half of 2010.
The gains were particularly marked in the growth markets of Asia and South
America, in whose development Bystronic has invested in recent years and which
generate an increasing portion of the business unit's sales. Thanks to the
improved order situation, all Bystronic Group companies were able to end short-
time working. The "Best choice." campaign, running in more than 40 countries in
2010, increased awareness of Bystronic as a supplier close to the customer who
provides complete systems for cutting and bending sheet materials, strengthening
both the brand and employee motivation.
The Glass Processing Systems business unit (Bystronic glass) increased sales by
15% to CHF 167.5 million (previous year: CHF 145.6 million). In local
currencies, the increase was 21.1% compared with the previous year. The growth
was generated largely in the Asian market, where sales increased strongly in the
architectural glass segment, boosted by major orders. Demand for vehicle glass
processing machinery from the automotive industry also recovered. But there was
little growth impetus from the European and American markets, where business was
partly affected by the adverse exchange rate situation. In Europe, demand began
to pick up towards the end of the year. On the whole, competitive pressure in
the market is still at a high level. The business unit tightened costs and
invested in product development, also in 2010.
The Automation Systems business unit (ixmation) closed the reporting year with
sales of CHF 56.4 million (previous year: CHF 56.1 million). When currency
translation effects and the divestment of production automation activities in
the previous year are taken into account, this equates to sales growth of
13.9%. In the first half of 2010, customers, particularly in the automotive
sector and the USA, were hesitant about investing, but the situation improved in
the second half. In the USA, orders were received above all in the medical
technology and alternative energy segments. Capacity was well utilized at the
plant in Malaysia, where a new production and office building was inaugurated in
September 2010. The plant in China carried out a number of orders for the
automotive industry. ixmation's international presence enabled it to execute an
increasing number of repeat orders for globally active companies.
The Foam Materials business unit (FoamPartner) increased sales to CHF 127.9
million in 2010, an increase of 9.5% compared with the previous year (CHF 116.8
million). Adjusted for negative currency translation effects, the business unit
posted a 13.8% increase compared with the previous year. Technical foams
(industry, packaging and automotive) generated marked sales growth, although the
performance in the first half year was better than in the second. In Europe, the
German market recovered well. There was also clear volume growth in China and
the USA, where the customer base was expanded in the reporting year. The comfort
product segment (mattress and pillow cores) closed 2010 at the same level as the
previous year. The strength of the Swiss franc hindered exports from Switzerland
and intensified the competitive struggle in the Swiss market, particularly in
the case of simpler products. On the procurement front, FoamPartner had to
absorb a price rise on key raw materials for foam production, resulting from
increased demand on the one hand and higher crude oil prices on the other.
The Sporting Goods business unit (Mammut Sports Group) increased sales in the
reporting year by 2.8% to CHF 221.2 million (previous year: CHF 215.3 million).
After adjustments to account for the sale of the Toko ski wax and care products
business to the Norwegian Swix Sport AS with effect from September 1, 2010, as
well as the effects of currency translation, the growth in sales equated to
6.7%. The Mammut Sports Group, now focused on the Mammut brand, was able to hold
its own in the growing outdoor market. The company recorded particularly strong
gains in the Japanese and Korean markets, as well as in Germany and Italy. Sales
in the home market of Switzerland, where Mammut has a very high market share,
could not be maintained at the previous year's level. The footwear product
group, the new backpack collection, climbing harnesses and the clothing lines
all developed well. The presentation of the new Eiger Extreme collection, which
goes on sale in autumn 2011, was well received by the retail trade.
The Graphic Coatings business unit (Schmid Rhyner) increased net revenues in the
reporting year by 7.9% to CHF 46.6 million (previous year: CH 43.2 million).
Schmid Rhyner returned to growth in almost all its key markets, with just a few
remaining at the previous year's level. The business unit recorded above-average
gains in Asia and South America. There was also healthy growth in North America.
The shortage of primary materials for varnish manufacture and resulting rises in
material prices represented a considerable challenge for Schmid Rhyner. Despite
these developments, the business unit was able to maintain security of supply
and deliver on time throughout 2010.
The Real Estate business unit (Plazza Immobilien) generated revenue of CHF 20.9
million in 2010 (previous year: CHF 21.4 million). The decline of 2.3% was
largely due to lower rental income, following the sale of two properties the
previous year. Rental income remained stable in the Swiss residential property
market. The development plan for a residential estate with around 200 apartments
on a former industrial site belonging to Conzzeta in Wallisellen was made
available for public inspection. The municipality will probably vote on the plan
during 2011.
Trends and outlook
In spite of the prevailing uncertainties in the business environment, Conzzeta
can look forward to 2011 with some confidence, thanks to the sustained level of
demand from customers. The risks and uncertainties include the monetary
imbalances and high level of indebtedness affecting various countries, as well
as the political instability in key regions. The economic impact of the
devastating earthquake in Japan on March 11, 2011, are still unclear. Regarding
the currency situation, it is to be expected that the Swiss franc will maintain
its strength against the euro and US dollar, as in 2010.
Overall, there has been a significant recovery in the Group's market
environment. This applies to industrial products as well as machinery and
systems engineering, where incoming orders continued to rise over the course of
the 2010 business year, creating a stronger starting position for 2011. The
outdoor market and the Swiss residential property market are also expected to
benefit from a favorable development in the current year.
Conzzeta aims to take advantage of growth opportunities. However, despite all
the positive signs, the economic environment is still fragile and Conzzeta will
continue to proceed with caution when it comes to costs and investments in
expansion projects. The goal is to increase the competitiveness in international
markets and strengthen the Group's presence in emerging markets.
The full version of the Annual Report is available atwww.conzzeta.ch.
For further information, please contact:
Carlo Menotti, Head of Corporate Services
phone +41 44 468 24 84
media(at)conzzeta.ch
The Conzzeta Group is an internationally active Swiss holding company, with over
3,300 employees worldwide. Its activities are in the areas of machinery and
systems engineering, foam materials, sporting goods, graphic coatings and real
estate. Conzzeta's shares are listed on the SIX Swiss Exchange (SWX:CZH).
The media release including consolidated income statement and consolidated
balance sheet can be downloaded from the following link:
--- End of Message ---
Conzzeta AG
Giesshübelstrasse 45 Zürich Switzerland
WKN: 265798;ISIN: CH0002657986;
Media release:
http://hugin.info/100413/R/1501446/436712.pdf
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Source: Conzzeta AG via Thomson Reuters ONE
[HUG#1501446]
Unternehmensinformation / Kurzprofil:
Datum: 30.03.2011 - 06:30 Uhr
Sprache: Deutsch
News-ID 52932
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contact information:
Town:
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