Horgen, 4 August 2016 – Schweiter Technologies posted a significant rise in revenues and earnings in the first half of 2016. The Group’s net revenues amounted to CHF 501.3 million in the first half of the year, corresponding to an increase of 16% (in local currencies: +13%). Both divisions contributed to the revenue growth. Earnings rose above average: Group EBITDA gained 40% (organic growth: 22%) to CHF 61.5 million, EBIT rose by 53% to CHF 48.2 million and net profit increased by 85% to CHF 34.5 million. The Group’s cash holdings amount to CHF 126 million after the dividend distribution of approximately CHF 57 million.
In addition to acquisition-driven growth, consistently high demand for wind power in Europe and the USA drove sales growth in the Core Materials business. The overall Architecture business developed well. This business benefited from a firming-up of sales in India plus the realization of numerous deferred projects in the Middle East and Southeast Asia. European revenues fell slightly in the reporting period, partly due to the reconstruction of a production line and the resulting capacity shortages.
The Display business in Europe benefited from the joint market presence together with the Polycasa Group (acquired in 2015) and from the synergies realized. The profitability of the Polycasa business improved significantly, due in part to the positive development of raw material prices. In the USA, Display revenue fell short of the prior-year figure owing to slack business at the start of the year. However, cost savings and efficiency gains led to an improved result.
The Mass Transportation business made positive strides. Revenues from the Bus business were considerably higher than in the prior period. The transfer of part of production from Switzerland to Poland, which is now virtually complete, impacted negatively on the first-half result.
SSM Textile Machinery saw a high level of incoming orders, which were up 36% at CHF 49.2 million. Net revenues rose by 1% to CHF 38.8 million (H1 2015: CHF 38.3 million).
Business in Bangladesh and Taiwan continued to develop gratifyingly. While order intake in Turkey recovered, China and India remained below average. Sales in the South American markets, especially Brazil, almost came to a halt in the first half of 2016.
EBITDA improved to CHF 5.3 million (H1 2015: CHF 4.5 million), which translates into a return on sales of just under 14%.
Outlook
In the second half of the year, overall business at 3A Composites is expected to develop favourably and in line with the first-half figures.
Given the high level of orders on hand at SSM Textile Machinery, a further improvement of results in the second half is expected.
The complete financial statements for the first half of 2016 can be found on our website, www.schweiter.com.
A media conference on the results for the first half of 2016 for analysts, the media and investors will take place at 11.00 a.m. today at the Park Hyatt Hotel, Beethovenstrasse 21, Zurich
For further information please contact:
Martin Klöti, CFO
Tel. +41 44 718 33 03, fax +41 44 718 34 51, martin.kloeti@schweiter.com
Schweiter Technologies Group (in CHF m) | H1 2016 |
| H1 2015 |
|
|
|
|
|
|
|
|
Net revenues | 501.3 |
| 431.0 |
| +16% |
EBITDA | 61.5 |
| 43.8 |
| +40% |
as a % of net revenues | 12.3% |
| 10.2% |
|
|
EBIT | 48.2 |
| 31.5 |
| +53% |
Net income | 34.5 |
| 18.7 |
| +85% |
3A Composites recorded new orders amounting to CHF 498.8 million (H1 2015: CHF 427.4 million). Net revenues rose by 18% to CHF 462.3 million (H1 2015: CHF 392.5 million). As a result, EBITDA came to CHF 57.9 million (H1 2015: CHF 40.6 million). This represents an increase of 42% compared to the prior-year period and equates to a return on sales of over 12%. EBIT amounted to CHF 45.1 million (H1 2015: CHF 28.9 million).
In addition to acquisition-driven growth, consistently high demand for wind power in Europe and the USA drove sales growth in the Core Materials business. The overall Architecture business developed well. This business benefited from a firming-up of sales in India plus the realization of numerous deferred projects in the Middle East and Southeast Asia. European revenues fell slightly in the reporting period, partly due to the reconstruction of a production line and the resulting capacity shortages.
The Display business in Europe benefited from the joint market presence together with the Polycasa Group (acquired in 2015) and from the synergies realized. The profitability of the Polycasa business improved significantly, due in part to the positive development of raw material prices. In the USA, Display revenue fell short of the prior-year figure owing to slack business at the start of the year. However, cost savings and efficiency gains led to an improved result.
The Mass Transportation business made positive strides. Revenues from the Bus business were considerably higher than in the prior period. The transfer of part of production from Switzerland to Poland, which is now virtually complete, impacted negatively on the first-half result.
SSM Textile Machinery saw a high level of incoming orders, which were up 36% at CHF 49.2 million. Net revenues rose by 1% to CHF 38.8 million (H1 2015: CHF 38.3 million).
Business in Bangladesh and Taiwan continued to develop gratifyingly. While order intake in Turkey recovered, China and India remained below average. Sales in the South American markets, especially Brazil, almost came to a halt in the first half of 2016.
EBITDA improved to CHF 5.3 million (H1 2015: CHF 4.5 million), which translates into a return on sales of just under 14%.
Outlook
In the second half of the year, overall business at 3A Composites is expected to develop favourably and in line with the first-half figures.
Given the high level of orders on hand at SSM Textile Machinery, a further improvement of results in the second half is expected.
The complete financial statements for the first half of 2016 can be found on our website, www.schweiter.com.
A media conference on the results for the first half of 2016 for analysts, the media and investors will take place at 11.00 a.m. today at the Park Hyatt Hotel, Beethovenstrasse 21, Zurich
For further information please contact:
Martin Klöti, CFO
Tel. +41 44 718 33 03, fax +41 44 718 34 51, martin.kloeti@schweiter.com