Conzzeta

EQS-Adhoc: Conzzeta: Higher HY-profit - good order intake sustained


EQS Group-Ad-hoc: Conzzeta / Key word(s): Half Year Results
Conzzeta: Higher HY-profit - good order intake sustained

11-Aug-2017 / 07:00 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 KR
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Half-Year Report at June 30, 2017
Higher profit - good order intake sustained

Zurich, August 11, 2017 - In the first half of 2017, the Conzzeta Group
generated net revenue of CHF 625.9 million, up 19.3% year on year, with order
intake remaining strong. The operating result increased by 46.5% to CHF 38.3
million, with an EBIT margin of 5.8% (previous year: 4.8%). The Group result
amounted to CHF 30.0 million, a rise of 44.0% on the previous year's level.

Net revenue on a comparable basis, i.e. at stable foreign exchange rates and
considering changes in the scope of consolidation, was 11.1% higher than in the
subdued first semester of 2016. A disproportionately high contribution came from
the strong performance in the Sheet Metal Processing segment and growth by the
Group as a whole in Asia of 22.4%. Including the 51% stake acquired in DNE
Laser, Shenzhen (China), in July 2016, sales growth in Asia amounted to 67.7%.
Net revenue in Europe grew by 10.6%, while weakening in the Americas by 1.5%.

The EBIT margin improved significantly on higher revenue, thanks in particular
to a favourable change in the mix of innovative products and despite set-up
costs in connection with the ongoing strategy projects and a notable rise in the
price of starting materials within the Chemical Specialties segment. Group
profit before minorities included a better financial result and higher tax
expense.

Michael Willome, Group CEO, comments: "In light of the pleasing results achieved
for the first six months of the year, particularly also in Asia, we are on
course overall to meet the targets set for 2017 and beyond. Innovation and
uncompromised market orientation are the basis for profitable growth and the
further internationalization of our group of companies."

Segments

TheSheet Metal Processing segment(Bystronic) generated net revenue of CHF 366.3
million (previous year: CHF 256.8 million). On a comparable basis, i.e. with
stable exchange rates and not including the acquisitions of DNE Laser and FMG in
the course of 2016, net revenue increased by 24.8%. The operating result was CHF
39.9 million (CHF 17.7 million), with an EBIT margin of 10.1% (6.5%). Net
revenue increased in all regions, with substantial two-digit growth rates in
Asia and Europe. The order intake continued to grow equally with two-digit
growth rates on a broad geographical basis. The order book further increased
from the above-average level at the end of 2016. The business benefitted on the
one hand from the generally positive state of the market. On the other hand,
demand was particularly high for Bystronic's newly launched laser cutting
systems with higher performance ratings and for integrated automation solutions
as well as for the entry-level products of DNE Laser. The integration of DNE
Laser and FMG was completed in the first half of 2017.

TheSporting Goods segment(Mammut) generated net revenue of CHF 95.1 million
(previous year: CHF 101.4 million). The operating result came in at CHF -9.9
million (CHF -4.5 million), with an EBIT margin of -10.4% (-4.5%). A lower
result in the seasonally anyway weaker first half of the year has been planned
in context of the ongoing strategy program with the further increased cost base
for the development of the mission critical competencies in the areas of
internationalization, digitalization, retail and design. The continuously
challenging competitive environment in the proportionally significant European
core markets of Switzerland, Germany and Austria (DACH-region) equally
contributed to the lower result. In addition, to sharpen the focus of Mammut's
aspiration to be a premium player in the area of alpine sports and outdoor
pursuits, liquidation sales were reduced in the first half of 2017 by CHF 3.3
million. The strategy program has now been launched across the entire breadth of
the business. Among the aims are improving the floor space productivity of the
important wholesale customers and strengthening Mammut's own retail know-how to
respond to rapidly changing consumer behaviour and strong competitive pressure.
In achieving these goals, the improvement of processes and their digitalization
will be of paramount importance.

TheChemical Specialties segment(FoamPartner and Schmid Rhyner) generated net
revenue
of CHF 114.5 million (previous year: CHF 111.0 million). The operating result
was CHF 9.9 million(CHF 12.5 million), with an EBIT margin of 8.5% (11.3%). As
expected, due to the continued rise in raw-material prices, it was not possible
to sustain the high EBIT margin recorded in the first half of 2016. For some
materials, parts of the industry experienced supply shortages with new peak
prices. The response to higher costs was price adjustments, which will take full
effect over time. While net revenue increased in Asia and Europe as well as in
the Mobility, Specialties and Print Varnishes market segments, a sideways trend
was apparent in the Americas and in the Living & Care market segment. At the
beginning of 2017, following last year's review of its business strategy,
FoamPartner rolled out a new organizational structure, devolving responsibility
for results to the regions with the aim of strengthening market orientation.
After completion of the acquisition of Otto Bock Kunststoff, announced on July
21, the new organization will be instrumental for the integration and the
significant expansion of the business in all three regions, Europe, Asia and the
Americas.

TheGlass Processing segment(Bystronic glass) generated net revenue of CHF 49.9
million (previous year: CHF 55.2 million). The operating result was CHF 1.8
million (CHF 2.1 million), with an EBIT margin of 3.4% (3.6%). A stronger
business trend in Europe and Asia was not sufficient to compensate for the
decrease in net revenue in the Americas, which was significantly lower than the
strong result recorded the previous year. The order intake overall was higher
year on year and the order book was above the level recorded at the end of 2016.
The result reflects the previously announced restructuring measures, currently
in the process of implementation.

Trends and outlook

The 2017 business year so far has matched our assessment at the start of the
year, although the state of the market in the Sheet Metal Processing segment has
shown a gratifyingly robust trend beyond our expectations. The order intake for
capital goods across the Group further increased at a high level thanks to
market-oriented innovations and provides a good foundation for a successful
second half in the Sheet Metal Processing and Glass Processing segments.

In the Sporting Goods segment, 2017 is a year of transition with a continued
focus on implementing the five year strategy program started in 2016, whereby
any resulting relevant revenue contribution is not anticipated before the second
half of 2018.

In the Chemical Specialties segment, FoamPartner is due to complete the recently
announced acquisition during the second half of 2017. The first-time
consolidation of the new business will impact the annual result accordingly,
with further integration and expansion activities planned from 2018 onward.

In the Glass Processing segment, there is the prospect of a better second-half
contribution to revenue and income compared with the first half thanks to
ongoing customer projects and to the reduced cost base.

Provided the business environment for capital goods remains robust, we expect
growth for 2017 above the previous year as well as a disproportionate increase
of the operating result with an improved EBIT margin of around 7.5%.

The table below summarizes the key figures for the Group and the segments. The
interim report 2017 and results presentation are published (in English)
atwww.conzzeta.com.

For queries and further information, please contact:
Michael Stäheli, Head Investor Relations & Corporate Communications
Phone: +41 44 468 24 49; media@conzzeta.com

About Conzzeta
Conzzeta is a broadly diversified Swiss group of companies. It stands for
innovation, reliability and a long-term perspective. Conzzeta strives for
leading positions in its target markets, above-average growth and long-term
value creation. Over 4200 employees at more than 60 locations worldwide are
dedicated to offering customers innovative solutions in Sheet Metal Processing,
Sporting Goods, Foam Materials, Graphic Coatings and Glass Processing. Conzzeta
is listed on the SIX Swiss Exchange (SIX:CON).

Group key figures

January-June                                                       

                                                          2017    2016

                                                                   

Net revenue                                        CHF m  625.9   524.6

Total revenue                                      CHF m  661.0   544.9

Operating result                                   CHF m  38.3    26.2

as % of total revenue                              %      5.8     4.8

Group result                                       CHF m  30.0    20.9

as % of total revenue                              %      4.5     3.8

Minorities                                         CHF m  3.9     -

                                                                   

Operational free cash flow*                        CHF m  9.9     9.5

                                                                   

Cash, cash equivalents and securities              CHF m  501.4   509.0

                                                                   

Shareholders' equity                               CHF m  944.5   955.4

Total assets                                       CHF m  1,276.4 1'227.3

as % of total assets                               %      74.0    77.8

                                                                   

Net operating assets                               CHF m  420.4   430.0

                                                                   

Employees at the end of June                       Number 4,207   3,539

Average number of employees in full-time positions Number 4,163   3,522

*Free cash flow without changes in securities and financial assets with a term
of more than 90 days as well as acquisition and divestment of business
activities.

Segment key figures

January-June                                              

                                                   2017  2016

                                                          

Sheet Metal Processing Net revenue           CHF m 366.3 256.8

                       Total revenue         CHF m 396.3 273.1

                       Operating result      CHF m 39.9  17.7

                       as % of total revenue %     10.1  6.5

                                                          

                                                          

Sporting Goods         Net revenue           CHF m 95.1  101.4

                       Total revenue         CHF m 95.1  101.7

                       Operating result      CHF m -9.9  -4.5

                       as % of total revenue %     -10.4 -4.5

                                                          

Chemical Specialties   Net revenue           CHF m 114.5 111.0

                       Total revenue         CHF m 116.4 111.3

                       Operating result      CHF m 9.9   12.5

                       as % of total revenue %     8.5   11.3

                                                          

Glass Processing       Net revenue           CHF m 49.9  55.2

                       Total revenue         CHF m 53.1  58.6

                       Operating result      CHF m 1.8   2.1

                       as % of total revenue %     3.4   3.6

                                                          

Additional features:


Document:http://n.eqs.com/c/fncls.ssp?u=QMMLEAPJLP
Document title: Higher HY-profit - good order intake sustained
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End of ad hoc announcement------------------------------------------------------

Language: English

Company:  Conzzeta

          Giesshübelstrasse 45

          8045 Zürich

          Switzerland

Phone:    +41 44 468 24 49

Fax:      +41 44 468 24 53

E-mail:info@conzzeta.com

Internet: www.conzzeta.com

ISIN:     CH0244017502

Valor:    A117LR

Listed:   Regulated Unofficial Market in Berlin, Stuttgart; Open Market in
Frankfurt; SIX Swiss Exchange



 

End of Announcement EQS Group News Service

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600735  11-Aug-2017 CET/CEST
 



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