Schweiter Technologies: Growth in revenues and focus on core business 3A Composites
(Thomson Reuters ONE) -
Schweiter Technologies /
Schweiter Technologies: Growth in revenues and focus on core business 3A
Composites
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Horgen, 18 August 2017 - In the first half of 2017 Schweiter Technologies posted
good organic growth in revenues. Net revenues from continuing operations rose
5% (+6% in local currencies) to CHF 485.6 million. The Group reported EBITDA of
CHF 52.6 million (H1 2016: CHF 56.2 million), equivalent to a return on sales of
10.8%. A temporary increase in raw material costs and one-off effects led to a
lower operating profit in the first half of the year in comparative terms. EBIT
amounted to CHF 38.9 million (H1 2016: CHF 43.4 million) and net income from
continuing operations came to CHF 30.9 million (H1 2016: CHF 30.5 million). Net
income increased to CHF 129.5 million (H1 2016: CHF 34.5 million). This includes
income of CHF 98.6 million from discontinued operations (SSM Textile Machinery).
The Group's cash holdings amounted to CHF 232 million.
Schweiter Technologies Group (in CHF m) H1 2017 H1 2016 + / -
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Net revenues 485.6 462.5 +5%
EBITDA 52.6 56.2 -6%
as a % of net revenues 10.8% 12.2%
EBIT 38.9 43.4 -10%
Net income from continuing operations 30.9 30.5 +1%
Net income from discontinued operations 98.6 4.0
Total net income 129.5 34.5
3A Composites received orders amounting to CHF 505.7 million (H1 2016: CHF
498.8 million). Net revenues rose by 5% to CHF 485.6 million (H1 2016: CHF 462.3
million). As a result, EBITDA came to CHF 53.9 million (H1 2016:
CHF 57.9 million). This equates to a return on sales of 11.1%. EBIT amounted to
CHF 40.1 million (H1 2016: CHF 45.1 million). The Display and Architecture
businesses in Europe and the US made particular contributions to the growth in
revenues.
The European Display business once again expanded its market position.
Systematic development of the extensive range of transparent and non-transparent
panels, coupled with a focused approach to sales, resulted in a particularly
sharp rise in revenues compared with the general economic trend. In the American
Display business, a combination of product innovations, a refocusing of sales
and major customer projects even led to a double-digit increase in revenues. A
temporary increase in raw material costs and the delayed contribution to
earnings of adjustments to selling prices resulted in comparatively lower
profitability.
The Architecture business posted double-digit increases in revenues in both
Europe and America. Higher-than-expected start-up costs for a new production
line negatively impacted profitability in the first half of the year. Weaker
demand in China, as well as project delays in the Middle East and India slowed
revenue performance in the Asian Architecture business.
The Core Materials business posted sustained strong demand - level with the
previous year - in both the wind and non-wind sectors. Revenue growth was
constrained by a temporary shortage of balsa wood resulting from unusually heavy
rainfall in Ecuador.
Business in the Transportation sector showed a very pleasing trend, recording
double-digit growth in revenues thanks to high demand in the rail vehicles
segment accompanied by a disproportionately strong increase in profitability.
Outlook
In the second half of the year, business is expected to continue to develop
favourably, with an operating result at least on a par with the first half.
Demand in the Display and Architecture business in Europe and the United States
is expected to be stable. The selective adjustment of selling prices should have
a positive impact on profitability in the second half of the year. Some signs of
recovery are emerging in the Asian Architecture business, while the Core
Materials business is expected to enjoy solid demand.
In addition, the acquisition of Athlone Extrusions in Ireland will further
strengthen the Composites business and make a positive contribution to earnings.
The complete financial statements for the first half of 2017 can be found on our
website, www.schweiter.com.
A media conference on the results for the first half of 2017 for analysts, media
representatives and investors will take place at 11.00 a.m. today at the
Marriott Hotel, Neumühlequai 42, Zurich.
For further information please contact:
Martin Klöti, CFO
Tel. +41 44 718 33 03, fax +41 44 718 34 51, martin.kloeti(at)schweiter.com
Please find the Media release in the PDF attached:
Media release (PDF)
The results for the first half of 2017 can be downloaded from the following
link:
Semi-Annual Report 2017 (PDF)
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Schweiter Technologies via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 18.08.2017 - 06:00 Uhr
Sprache: Deutsch
News-ID 557009
Anzahl Zeichen: 6069
contact information:
Town:
Horgen
Kategorie:
Business News
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