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Huber+Suhner: Increased profitability despite lower sales
Herisau /Pfäffikon (ots) - For the HUBER+SUHNER Group, a leading global supplier of components and systems for electrical and optical connectivity, the first six months of 2005 were characterized by solid execution in a business environment which was less buoyant than the corresponding period the year before.
The operating result (EBIT) improved by 7% to 24.3 mCHF (22.7) and the Net Income of 24.3 mCHF (19.9) reflects an increase of 22%, bringing Return On sales (ROS) to an all time high of 8.8%. This is primarily a result of an increase of Gross Profit Margin to 38.5% (36.9%) and to a limited extent, a favourable currency exchange situation.
As foreseen in the company's comments at the Analyst and Media conference in March 2005, the "miniboom" of the first half year 2004, saw no repetition this year and therefore revenue levels are 5.9% (5.1% with adjustments for portfolio changes) below the level of the corresponding period last year. The sales trend is positive however, and the Order Intake is 19.2% higher than the previous half year (second half year 2004).
In spite of higher Dividends, active cash management and an improved working capital situation provided a strong Free Cash Flow of 19 mCHF (17.6). Net liquidity has increased with 19 mCHF to 72 mCHF and bank debt has been further reduced and is of little significance.
- Continued business growth in Asia
- Double digit growth in Fibre Optics
- Awarded "Supplier of the year" by Flextronics in China
- Successful start of a new subsidiary in India
- A number of successful product launches in all technology areas
- Lean Six Sigma program started,for continued improved
Following a slow-down towards the end of 2004, HUBER+SUHNER has seen an increase in business activity and orders received during the first semester of 2005, especially towards the end of the period reported. Therefore the company expects the rest of 2005 to continue on a positive note, albeit that the second part of the year is normally slower than the first. It remains uncertain however, whether the increased activity level will suffice to reach last year's level of sales. Therefore HUBER+SUHNER currently forecast Net Sales for the full year 2005, at a level somewhat below that of 2004. Profitability will remain high, leaving the company with a predicted EBIT of above 40 mCHF and an EBIT margin well above our target level of 7%.
HUBER+SUHNER GROUP: FINANCIAL HIGHLIGHTS
(CHF millions) 1st half 2005 1st half 2004 Change
Bookings 287.8 317.6 -9%
Technology 151.7 172.7 -12%
Technology 136.1 144.9 -6%
Net sales 275.3 292.6 -6%
Technology 143.4 156.3 -8%
Technology 131.9 136.3 -3%
EBIT (operating profit) 24.3 22.7 7%
Net income 24.3 19.9 22%
EBITDA 36.9 36.3 2%
Employees at the end
of period 2699 2558 6%
Free Cash Flow 19.0 17.6 8%
Unaudited figures in accordance with SWISS GAAP FER.This report will be the last report issued by HUBER+SUHNER according to SWISS GAAP FER.The Annual Report for 2005 will be issued according to IFRS (International Financial Reporting Standards).
The HUBER+SUHNER Group is a leading global supplier of components and systems for electrical and optical connectivity in communications, industrial applications, and transportation. HUBER+SUHNER can draw on core competencies in the areas of radio frequency technology, fiber optics, cables and ploymers. Working in close collaboration with its customers around the globe, HUBER+SUHNER strives for excellence in the development and manufacturing of high quality products. her information on the company can be found at http://www.hubersuhner.com.
ots Originaltext: Huber+Suhner