Adval Tech Group's annual results for 2002 - Trend in 2003: Adval Tech makes strong progress in key markets
Niederwangen (ots)
Despite a very difficult economic environment in the year under review, the Adval Tech Group posted a 15.2% increase in operating earnings (EBIT). Net profit was also slightly higher than the previous year's figure. Furthermore, Adval Tech reduced net debt by almost one-third. Both divisions considerably strengthened their market positions. The group's prospects for further improvement in competitiveness and earning power are good.
Rigorous cost management and productivity improvements had a major impact on the results achieved by the Adval Tech Group. The sharp increase in sales of molds used in the manufacture of optical discs (Injection Molding Division) and volume components for the automotive and telecommunications industries (Stamping and Forming Division) also had a very positive influence on results.
Injection Molding Division
Two contrasting trends characterized the results achieved by the Injection Molding Division: in the extremely volatile market for OD molds there was a considerable backlog of demand, while other product groups in moldmaking and volume parts manufacturing suffered from the weak level of overall economic activity. The division achieved very good results relative to the industry as a whole: total income increased by 3.1% to CHF 76.1 million. The EBIT margin was a creditable 17.7%. The division made a major strategic move with the acquisition of the German moldmaking firm of Foboha GmbH by Adval Tech Holding Ltd with effect from the beginning of 2003. Foboha reinforces the division's market position in moldmaking, reduces its dependence on the optical disc market and contributes interesting additional technological capabilities in the multi-component sector.
Stamping and Forming Division
In the context of its strategic reorientation, the Stamping and Forming Division continued to concentrate on the core activity of volume parts manufacturing and also distinctly strengthened its market position. Weak economic activity resulted in sales setbacks in some markets. However, the sharp increase in sales of components for the automotive industry prevented an even steeper decline. The development of the steering system business was especially encouraging, with sales increasing by 60%. The sharp recovery in the mobile telephone market in the second half of the year also had a positive impact. The division's total income was 6.6% lower, but EBITDA was 25% higher and EBIT doubled. The EBITDA margin of 10.4% is on track.
The respectable annual results posted by the Adval Tech Group bear witness to its adaptability. With free cash flow of CHF 23.8 million, Adval Tech was able to reduce net debt by almost one-third to CHF 39.5 million. The board of directors will propose to the annual general meeting that an unchanged dividend of CHF 12 per registered share should be paid.
In 2003 the emphasis for the Adval Tech Group will be on consolidation, the implementation of strategic objectives and the successful integration of Foboha. Both divisions have sufficient capacity, leadership in technological know-how and trend-setting products.
Key figures 20022001
Total income (CHF millions) 173.0 177.3 - Stamping and Forming Division 97.3 104.2 - Injection Molding Division 76.1 73.9
Net turnover (CHF millions) 174.2 171.5
Operating earnings (EBITDA) (CHF millions) 31.5 28.1 - Stamping and Forming Division 10.1 8.1 - Injection Molding Division 20.6 19.5
Operating earnings (EBIT) (CHF millions) 15.9 13.8 - Stamping and Forming Division 2.0 0.9 - Injection Molding Division 13.4 12.5
Net profit (CHF millions) 10.8 10.6
Number of employees on Dec. 31 828 796 - Stamping and Forming Division 506 501 - Injection Molding Division 317 289
Background information on the Adval Tech Group
The Adval Tech Group is a leading supplier of tools, subassemblies, systems and volume components in the technology sectors of stamping and forming (metals) and injection molding (plastics). It is a supplier and value-adding partner for companies in all industries where metal or plastics components are manufactured and used. The Stamping and Forming Division trades under the name of Styner+Bienz, the Injection Molding Division under the names of AWM and Foboha. Their largest customers are in the automotive, information and communications technology, packaging and electronics industries.
Illustrations can be downloaded from www.advaltech.com.
Contact:
Jean-Claude Philipona
Chief Executive Officer (from 2.30 p.m. on April 30, 2003)
Phone +41/31/980'82'75
Fax +41/31/980'82'60
Internet: http://www.advaltech.com
Adval Tech Holding Ltd
CH-3172 Niederwangen
Phone +41/31/980'84'44
Fax +41/31/980'82'60