Conzzeta Group: Interim report at August 31, 2009
(Thomson Reuters ONE) - Corporate news announcement processed and transmitted by Hugin AS.The issuer is solely responsible for the content of this announcement. ------------------------------------------------------------------------------------ Conzzeta's main markets still weakZurich, October 12, 2009. - The Conzzeta Group's interim financialstatements at the end of August 2009 reflect the worldwide cyclicaldownturn. Compared with the same period of 2008, consolidated netrevenues fell by -38.3% to CHF 607.9 (985.3) million. The program ofmeasures to adjust capacity levels in line with market conditions,first announced at the end of June 2009, has been largelyimplemented. This will contribute to a further lowering of the costbase from 2010 onwards. The operating result (EBIT) at the end ofAugust 2009 was CHF -27.9 (73.6) million. This includes nonrecurringcosts of around CHF 26 million for the capacity adjustment program.Demand in the machinery and systems engineering businesses stabilizedat a low level, but the order intake so far shows no signs ofrecovering. Conzzeta will continue on its chosen course, with thegoal of maintaining competitiveness.The global economic crisis continued to have a negative impact onGroup business performance in the second third of the year. As aresult, consolidated net revenues fell by -38.3% to CHF 607.9 (985.3)million. Adjusted for the effects of currency translation andacquisitions, the decrease was -36.6%. The crisis continues to exerta strong influence on the Sheet Metal Processing Systems, GlassProcessing Systems and Foam Materials businesses. The Sporting Goodsbusiness unit has so far been able to maintain its growth curve.The program of capacity adjustments, first announced on June 24,2009, is on course and already largely implemented. The full effectof the cost-saving measures will be felt in the 2010 business year,reducing the Group's cost base by around CHF 60 million compared with2008. The Group operating result (EBIT) for the period of CHF -27.9(73.6) million contained nonrecurring costs of about CHF 26 millionarising from the program of capacity adjustments. The Group resultwas CHF -14.9 (59.8) million. This included an extraordinary profitof CHF 10.9 million from the sale of two properties not essential tobusiness operations. Apart from the cost-saving measures, Conzzetaalso focused on securing liquidity. Intensive management of networking capital in the second third of the year made a majorcontribution to the positive free cash flow of CHF 30.8 million. TheConzzeta Group remains solidly financed, with an equity ratio of76.5%.Business unitsIn the second third of 2009, the Sheet Metal Processing Systemsbusiness unit (Bystronic) was strongly affected by the low orderintake in the earlier part of the year. At the end of August 2009,sales were CHF 226.3 (513.1) million (-55.9%). In local currencies,the decrease was -52.9% compared with the same period of 2008.Geographic markets such as Germany, France and Great Britain wererelatively robust. In eastern Europe and Russia, by contrast, hardlyany machines were sold. The first indications of a recovery wereapparent above all in China. Overall, the order intake improvedslightly in the second third of the year, but there are still nosigns of an actual upturn.The Glass Processing Systems business unit (Bystronic glass) reportedsales of CHF 99.2 (173.3) million (-42.8%) at the end of August 2009.In local currencies, the decrease was -40.3%. The worldwide slump indemand for glass and glass-processing machinery persisted through thesecond four months of the year. In addition, a considerable number ofthe orders received could not be fulfilled because customers wereunable to obtain financing. The biggest drop in sales compared withthe previous year was recorded in the automotive glass segment.Overall, there are still no signs of any easing of the marketsituation in the glass processing sector.The Automation Systems business unit (ixmation) reported sales of CHF35.6 (35.1) million (+1.3%) at the end of August 2009. Afteradjustments for currency effects (+4.2%), this is almost on a parwith the previous year's result. Sales were driven mainly by theelectronics, solar and medical technology segments. Despite thedemanding market environment and delays in awarding contracts, thebusiness unit succeeded in acquiring new customers and orders, mainlyfor the locations in Malaysia and the USA. On June 24, 2009, theGroup announced it was to shut down the manufacture of systems forproduction automation at the Pieterlen site in Switzerland. This unitwill continue operations under the name of Seckler AG as part of amanagement buy-out. The ixmation business unit will concentrate infuture on its core business of systems for assembly-line automation.The Foam Materials business unit (FoamPartner) generated sales of CHF75.0 (104.7) million (-28.4%) in the first eight months of 2009.After adjustment for currency influences and the effect of anacquisition, the decrease compared with the previous year was -31.2%.In view of the uncertain economic situation, customers in the comfortand industry segments continue to maintain inventories at a lowlevel. Some application segments in the area of technical foamsgained momentum in the second third of the year, but overall thereare still no clear signs of a real recovery.The Sporting Goods business unit (Mammut Sports Group) continued togrow, with sales reaching CHF 129.2 (111.9) million, an increase of15.5% on the previous year. A number of factors contributed to thisgrowth during the second third of the year. In Switzerland andGermany, both important outdoor markets for Mammut, consumersentiment remained positive, despite the economic crisis. Salesgrowth was particularly strong in the Korean and Japanese markets,where Mammut has an increasing presence and the brand has been wellreceived. In cooperation with the retail trade, Mammut stores wereopened in Zurich and Berlin. Overall, the outdoor market was stablein the second third of the year.The Graphic Coatings business unit (Schmid Rhyner) generated salesof CHF 27.8 (32.2) million (-13.8%) to the end of August 2009. As aresult of the economic downturn, demand from the printing industry(commercial and packaging printing) continued to decline in thesecond third of the year. Schmid Rhyner managed to buck the trend insome markets, maintaining or even increasing sales, despite thedifficult market environment.Trends and outlookDemand in the principal markets of the Conzzeta Group has stabilizedat a very low level. However, the order intake is still showing nosign of picking up and it may be some time before a tangible recoveryis seen in the machinery and systems engineering sector. It isunclear how far the ongoing crisis will affect private consumption.Conzzeta intends to continue systematically on its chosen course ofmaintaining its competitiveness, geographic market coverage andinnovative strength. The capacity adjustments, which have alreadybeen implemented to a large extent, will significantly reduce theGroup's break-even point. As announced in earlier media releases, the2009 business year will produce negative operating and Group results.A further recovery in the markets is needed if positive results areto be achieved on a sustainable basis.For further information please contact:Carlo Menotti, Head of Corporate ServicesPhone +41 44 468 24 84media(at)conzzeta.chConzzeta Group is an internationally active industrial holdingcompany with 3,500 employees worldwide. Its core business areas aremachinery and systems engineering, and manufacture of consumer andindustrial products. Conzzeta's shares are listed on the SWX SwissExchange (SWX:CZH).The News Release including consolidated income statement can bedownloaded from the following link:http://hugin.info/100413/R/1346784/323608.pdf --- End of Message ---Conzzeta AGGiesshübelstrasse 45 Zürich SwitzerlandWKN: 265798; ISIN: CH0002657986; Index: SPI, SSCI, SPIEX;Listed: Main Market in SIX Swiss Exchange;
Datum: 12.10.2009 - 06:30 Uhr
Sprache: Deutsch
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