Half-Year Report at June 30, 2011: Revenue growth and improved result
(Thomson Reuters ONE) -
Conzzeta AG /
Half-Year Report at June 30, 2011: Revenue growth and improved result
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The issuer is solely responsible for the content of this announcement.
Zurich, August 18, 2011. - The Conzzeta Group increased net revenues by 8.1%
(19.2% in local currencies) in the first half of 2011. Compared with the weak
performance in the same period of 2010, the operating result doubled, reaching
CHF 28.6 million. The first-half result was influenced by the adverse currency
effects, which are expected to be even more pronounced in the second half.
The worldwide economic recovery continued in the first half of 2011. The dynamic
development in the growth markets and the continuing, though uneven, upturn in
Europe created a positive overall economic environment for the Group's business
units.
Against this background, the Conzzeta Group generated consolidated net revenues
of CHF 512.1 million in the first half of 2011 (previous year: CHF 473.6
million), representing growth of 8.1%. In local currencies and adjusted for a
divestment effect of 0.8%, the increase amounted to 19.2%. The growth of the
Group was driven by the Sheet Metal Processing Systems business unit, which
increased revenues by more than a third.
The Group's revenues and result were significantly influenced by negative
currency effects, as the Swiss franc rose steadily against the key currencies.
The Conzzeta Group has a strong operating base in Switzerland and the currency
trend led to competitive disadvantages and margin pressure for all the entities
exporting from Switzerland. At the same time, there was increased pressure in
the Swiss market from foreign competitors offering lower prices.
The operating result (EBIT) rose to CHF 28.6 million, which was 118.3% higher
than the weak first-half performance in 2010 and represented half the annual
operating result for 2010. The operating margin was 5.3%. Group profit was CHF
21.5 million, up more than 90% on the first half of 2010 (CHF 11.3 million).
Owing to the increased volume of business and the consequent rise in net current
assets, operating free cash flow amounted to CHF -4.2 million (previous year:
CHF 5.8 million). With an equity ratio of 76.4%, Conzzeta's financial
fundamentals remain very solid.
Business units
The Sheet Metal Processing Systems business unit (Bystronic) generated revenues
of CHF 248.0 million in the first half of 2011, a year-on-year rise of 35.3%
(previous year: CHF 183.3 million). In local currencies, the increase was
51.0%. The main product categories - laser and waterjet cutting systems, as well
as pressbrakes - reported increased sales, while all geographic market regions
contributed to the growth. Bystronic continued to invest in internationalizing
its business, opening a new sales company in Taiwan and a representative office
in Vietnam. It also expanded existing sales operations and started construction
of a second factory in China.
The Glass Processing Systems business unit (Bystronic glass) reported net
revenues of CHF 64.4 million (previous year: CHF 74.8 million). This represents
a decline of 14.0%, 5.0% in local currencies. The architectural and automotive
glass segments were unable to match the level of sales achieved in the first
semester of 2010. By contrast, sales of machinery for glass handling and the
solar industry increased, while the service business also grew. In a difficult
competitive environment, customers in Europe, the principal market region, were
hesitant about placing orders. Bystronic glass was barely able to capitalize on
the market growth in Asia. However, in the markets of the USA, Eastern Europe
and Russia, it exceeded the previous year's sales performance. The currency
situation had a negative impact on the course of business of the Swiss-based
operations.
The Automation Systems business unit (ixmation) returned net revenues of CHF
15.3 million (previous year: CHF 20.7 million) for the first half of
2011, 26.4% lower than for the same period a year ago. In local currencies, the
decline was only 14.1%. The fall in revenues is attributable mainly to a lack of
continuity in the progress of customers' plant engineering projects. In the
first half of 2011, ixmation acquired new customers in the medical technology
and alternative energy segments, and strengthened its sales organization in the
USA as a base from which to develop the South American market. Order intake and
order book were both significantly higher than in the same period of 2010, not
least thanks to several major projects.
In the first half of 2011, the Foam Materials business unit (FoamPartner)
increased net revenues by 7.0% in local currencies. In Swiss francs, the figure
remained close to the 2010 figure at CHF 65.4 million (previous year: CHF 65.6
million). Growth in the Technical Foams segment was sustained, notably in North
America and Asia. In both the Technical Foams and Comfort segments (cushion,
pillow and mattress cores), the first half saw a general trend toward processed
products, which developed more positively than unprocessed slabstock.
Competition was more intense as a result of currency effects, particularly in
the Comfort segment. The strong Swiss franc held exports back, while in the home
market competitors from the eurozone enjoyed a price advantage. Overall, the
market was influenced by persistently high raw material prices in all regions.
The Sporting Goods business unit (Mammut Sports Group) generated net revenues of
CHF 85.4 million (previous year: CHF 95.0 million) in the first half of 2011, a
year-on-year decrease of 10.1%. In local currencies and adjusted for the sale of
the Toko business activities in 2010, revenues in the seasonally weak first half
remained close to the previous year's level. Growth on the corresponding period
of 2010 was prevented by a lack of winter snow and the dry spring. In Central
Europe, particularly in Switzerland, sales of reordered articles were lacking,
for example the Barryvox avalanche beacon and weatherproof clothing for the
spring. The business in Germany developed well. Near the existing site in
Memmingen, Mammut has begun construction of a new central warehouse to serve the
whole of Europe, at a total investment of EUR 23 million. The markets in Korea
and Japan also developed well. Three new Mammut Stores were opened, with four
more to follow this year. Sales in Japan have not so far been affected by the
effects of the earthquake in March 2011.
The Graphic Coatings business unit (Schmid Rhyner) reported net revenues of CHF
22.8 million (previous year: CHF 23.4 million) in the first half of 2011, a
decrease of 2.4% in Swiss francs. In volume terms, more varnishes and laminating
adhesives were sold than in the corresponding period of 2010. In particular, new
dispersion varnishes and varnishes for food packaging progressed well. The
markets in Europe showed a varied picture and the contrast between the decline
in revenues and higher production volumes underlines the impact of the strong
Swiss franc.
Trends and outlook
The turbulence on foreign exchange markets and continuing macro-economic
uncertainties regarding the unresolved problem of indebtedness affecting many
countries render any reliable forecast impossible. Although the order books of
business units in the machinery and systems engineering sector are fuller than
at the turn of the year, Conzzeta expects the upturn in North America and Europe
to weaken and the momentum to come mainly from the Asian growth markets. The
strong Swiss franc makes the competitive environment tougher for Swiss
suppliers, with a corresponding impact on results. Conzzeta is therefore
expecting to face a challenging environment in the second half of 2011.
For further information please contact:
Carlo Menotti, Head of Corporate Services
Phone +41 44 468 24 84
media(at)conzzeta.ch
Conzzeta Group is an internationally active Swiss holding company with approx.
3,400 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 Half-Year Report 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;
Half-Year Report 2011:
http://hugin.info/100413/R/1539165/470271.pdf
Press Release Half-Year Report 2011:
http://hugin.info/100413/R/1539165/470269.pdf
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originality of the information contained therein.
Source: Conzzeta AG via Thomson Reuters ONE
[HUG#1539165]
Unternehmensinformation / Kurzprofil:
Datum: 18.08.2011 - 06:30 Uhr
Sprache: Deutsch
News-ID 57342
Anzahl Zeichen: 10043
contact information:
Town:
Zürich
Kategorie:
Business News
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