Feintool Group's business results for financial year 2008/09:
Turbulent year for the Feintool Group
(Thomson Reuters ONE) - Corporate news announcement processed and transmitted by Hugin AS.The issuer is solely responsible for the content of this announcement. ------------------------------------------------------------------------------------ As a result of the collapse of production and sales in theinternational automotive markets, the Feintool Group ended financialyear 2008/09 with a 35% year-on-year fall in sales to CHF 370 millionand net earnings of CHF -67.5 million. The results were heavilyburdened by one-off costs of CHF 40 million. The operating result(EBIT) came to CHF -58.7 million.Net debt rose by nearly 12% on the previous year to CHF 64.8 million.With shareholders' equity at CHF 142.3 million, the equity ratio fell4.8% to 38.3%.Order intake slumped at the beginning of the financial year, butstabilized at a low level in the course of the year. A modestrecovery began to appear in certain sectors towards the end of thefinancial year. Overall, order intake fell 49% to CHF 282.5 million.Orders in hand fell 45.1% to CHF 120.9 million.The steps that the company has initiated or already implemented willenable it to benefit from any recovery in its markets. The FeintoolGroup anticipates sales of CHF 340 to 350 million in financial year2009/10. Making allowance for the closure of one production site,this represents a slight increase. A slightly negative operatingresult is expected.Key financial figures at a glance:+-------------------------------------------------------------------+| Figures in CHF | Change | 30.09.2009 | 30.09.2008 || | in % | (CHF m) | (CHF m) ||--------------------------------+--------+------------+------------|| Fineblanking/Forming sales | -34.7 | 239.8 | 367.2 ||--------------------------------+--------+------------+------------|| Automation sales | -32.8 | 94.8 | 141.0 ||--------------------------------+--------+------------+------------|| Plastic/Metal Components sales | -42.3 | 35.9 | 62.2 ||--------------------------------+--------+------------+------------|| Feintool Group sales | -35.0 | 370.0 | 569.2 ||--------------------------------+--------+------------+------------|| Earnings before interest, tax, | | -29.6 | 56.1 || depreciation | | | || and amortization (EBITDA) | | | ||--------------------------------+--------+------------+------------|| Operating profit (EBIT) | | -58.7 | 33.9 ||--------------------------------+--------+------------+------------|| Net earnings | | -67.5 | 20.1 ||--------------------------------+--------+------------+------------|| Total assets | -21.8 | 371.7 | 475.3 ||--------------------------------+--------+------------+------------|| Shareholders' equity | -30.5 | 142.3 | 204.6 ||--------------------------------+--------+------------+------------|| Net debt | +11.9 | 64.8 | 57.9 ||--------------------------------+--------+------------+------------|| Orders received | -49.0 | 282.5 | 553.5 ||--------------------------------+--------+------------+------------|| Orders backlog | -45.1 | 120.9 | 220.1 |+-------------------------------------------------------------------+Chairman of the Board of Directors Alexander von Witzleben summarizedfinancial year 2008/09 as follows:"The difficult situation on the international automotive markets wasdirectly reflected in the Feintool Group's figures. The result was adouble-digit slump in sales for the System Parts segment and adramatic fall up to 70% in incoming orders for the Technology andAutomation segments.Our object was - and is still - to respond to these drasticdevelopments in a systematic manner. The measures taken dominated thebusiness year and have left obvious traces. We succeeded inimplementing key improvements and securing long-term financing infinancial year 2008/09. With a significantly lower cost base andadjusted capacities we are equipped to deal with the challenges thatlie ahead and restore the Feintool Group to a profitable growthtrajectory."Summary of financial year 2008/09In financial year 2008/09, the economic situation had an obviousimpact on the Feintool Group as a leading technology and systemsprovider in fineblanking/forming and assembly automation, as well asa global supplier of fineblanked metal components to the automotiveindustry. The operating result (EBIT) came to CHF -58.7 million owingto the 35% year-on-year fall in sales to CHF 370 million and theattendant decline in the contribution margin at gross profit leveldue to order shortfalls in the United States and one-time expensesamounting to CHF 40.0 million. The company's net earnings totalledCHF -67.5 million.Order intake virtually halved to CHF 282.5 million. Orders in handfell similarly heavily by 45.1% year-on-year, totalling CHF 120.9million on 30 September 2009. At the same time net debt rose 11.9% toCHF 64.8 million. With shareholders' equity at CHF 142.3 million, theequity ratio fell to 38.3%.Little cash outflow despitelossCash flows from operating activities were modest at CHF -4.6 milliondespite the high net loss. This was helped by the positive effect ofthe reduction in net working capital (CHF 21.0 million). Investmentwas reduced to a minimum owing to the business situation. This wasreflected in cash flows for investing activities of only CHF 8.1million. Despite these measures, cash drain in financial year 2008/09came to CHF 12.7 million.DividendAt the Annual General Meeting on 26 January 2010, the Board ofDirectors will be proposing that no dividend be paid owing to thechallenging economic environment.The Feintool segments at a glance:Differing reactions in press and series parts businessSales and earnings in Fineblanking/Forming, which comprises thepresses and systems business area and the parts manufacturingbusiness area, slumped as a result of global economic developments inthe segment's core markets in the automotive industry. Sales fell34.7% on the previous year's record level to CHF 239.8 million. Thisrepresents 64.7% of Group sales.In the press and systems business, the economic crisis made itsimpact felt around three to six months later than in series partsproduction, where sales had started to fall substantially in October2008. By contrast, press orders virtually dried up towards the end ofthe financial year, whereas series parts staged a partial recovery.In Japan in particular, monthly sales showed a year-on-year increasein the final quarter. At CHF -20.2 million, the segment's EBIT wassignificantly lower than in the strong financial year 2007/08 (CHF32.1 million). At CHF 84.0 million on 30 September 2009, orders inhand were 44.1% lower than the previous year, while order intake was50.5% lower at CHF 178.1 million.Overall significant cost savings and capacity adjustments wereachieved. However, there was a time lag in implementing thesemeasures because of the sudden nature of the collapse. Thistechnology-driven segment is vitally dependent on the expertise ofits employees, and for that reason headcount was adjusted only whereit did not affect any new projects.Furthermore, a new generation of presses which will stimulate futuregrowth is ready for market launch. To improve transparency, thesegment will be divided into Fineblanking/Technology and System Partsas of 1 October 2010 and the two areas' results will be reportedseparately.Delayed and varying impact on AutomationThe Automation segment, which brings together the expertise ofleading automation specialists, benefitted from the very good ordersituation in the first half of financial year 2008/09, but also feltthe effects of customers' declining willingness to invest in thesecond half.Sales dropped 32.7% to CHF 94.8 million or 25.6% of Group sales, AtCHF -6.8 million, the segment's EBIT was also significantly lowerthan in financial year 2007/08 (CHF 10.2 million). Orders in handwere 54.2% lower than the previous year at CHF 24.9 million due tothe modest new order intake of CHF 72.1 million (46.2% below theprevious year).In all areas of the segment, Feintool responded by realigning itselfwith the lower level of sales. Headcount at all sites was broughtinto line with the order situation. Furthermore, the unprofitablesite in Aarberg (Switzerland) was merged with Afag Automation AG inHuttwil (Switzerland). Sales and servicing activities for the IMAbrand in Switzerland will be managed from Huttwil in future.Production at Aarberg will cease at the end of January 2010.Feintool is continuing to successfully enter the solar and medicaltechnology markets with the aim of permanently reducing itsdependency on the automotive industry to under 50%. Afag AutomationAG's components business portfolio is being systematically expanded,while Baltec, the world market leader in riveting technology, is alsoconquering new markets.Plastic/Metal Components segment being dissolvedThe process of closing down the Plastic/Metal Components segment inthe form of Mühlemann AG in Biberist (Switzerland) is progressing onschedule and will end on 31 March 2010. As expected, sales fell 42.3%to CHF 35.9 million. EBIT was significantly negative due to highrestructuring costs. However, the smallest segment - with a 9.7%share of sales - impacted heavily on the Feintool Group's results.The Feintool regionsSales by region displayed a varied trend. The year-on-year comparisonshows a shift in sales from Europe to North America and Asia. Saleswere down 41.1% in Europe, and 22.4% in North America. Sales in Japanfell by only 7.4%. The Feintool Group generated 62.4% of its sales inEurope, 18.5% in North America, 9.8% in Japan and 9.3% in the rest ofthe world.OutlookThe steps that the company has initiated or already implemented willenable it to benefit from any recovery in its markets. The FeintoolGroup anticipates sales of CHF 340 to 350 million in financial year2009/10. Making allowance for the closure of one production site,this represents a slight increase. A slightly negative operatingresult is expected.As things look at the moment, the series part business has bottomedout. After a good start, the indications are that System Parts willcontinue to develop positively in the second quarter of 2009/10.Other factors - such as a fresh hike in oil prices - remainuncertain. Feintool expects difficult conditions characterized byshort-term fluctuations in call-off volumes to continue in the newfinancial year. Despite this, the Group anticipates a positiveoperating result in all regions in financial year 2009/10Feintool's system business is late-cyclical and benefits fromeconomic stimuli after a time lag of around six months. Even with anascent economic recovery, the current, lower order intake willimpact negatively for at least another six months in the newfinancial year. An investment-driven boost can be expected as soon asthe business situation improves.Within the Automation segment, Afag Automation AG is very wellequipped for financial year 2009/10 with new products and successfulsite optimization. Baltec, the global leader in riveting machines,will strengthen its involvement in the BRIC markets. In theautomation systems business, the groundwork has been laid for themove into solar and medical technology. This direction is beingpursued rigorously. Feintool has responded systematically in allthree business areas of the segment. Despite this, Feintool expectsfinancial year 2009/10 to be difficult due to the time lag in thesystems business.Additional authorizedcapitalAt the Annual General Meeting on 26 January 2010, the Board ofDirectors will be proposing that authorized capital equivalent toaround 25% of existing capital be created by the issue of 191,000 newshares with a nominal value of CHF 50.--. This authorized capitalwill give the Board of Directors additional shareholders' equity ifit should require it.Further information may be obtained from Karin Labhart, MediaSpokesperson, at any time by calling +41 (0)32 387 51 63 or e-mailingkarin.labhart(at)feintool.com.Feintool International Holding AGIndustriering 8, CH-3250 LyssPhone +41 (0)32 387 51 11Fax +41 (0)32 387 57 81feintool-fim(at)feintool.comwww.feintool.comThe media release can be downloaded from the following link:http://hugin.info/100443/R/1359471/331367.pdf --- End of Message ---Feintool International HoldingIndustriering 8 Lyss SchweizWKN: 905428; ISIN: CH0009320091 ; Index: SPI, SPIEX, SSCI;Listed: Main Market in SIX Swiss Exchange;
Datum: 08.12.2009 - 07:00 Uhr
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