Feintool Group posts a loss for the first half of 2008/09
Corporate news announcement processed and transmitted by Hugin AS.
The issuer is solely responsible for the content of this
announcement.
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The semi-annual press conference will be held at 10.30 a.m. on 26 May
2009 at the Feintool head office, Industriering 8, Lyss, Switzerland
The Feintool Group, a leading technology and systems provider and a
global components supplier based in Lyss, Switzerland, has been badly
hit by the global crisis in the automotive industry. The key figures
for the first half of the current 2008/09 financial year are well
below those for the first half of 2007/08 (which, however, was a
record year). Despite the massive drop in volumes, the net operating
result for the core business - less consolidated expenses - was
CHF -11.3 million. Extraordinary charges of CHF 30.9 million impacted
on the figures.
At CHF 202.8 million, consolidated sales were 30.3% below those in
the same period last year (CHF 291.2 million). The operating result
(EBIT) declined to CHF -42.2 million (previous year: CHF 18.4
million) while net income was down from CHF 9.2 million to CHF -46.8
million. Order intake fell 55.8% to CHF 136.0 million (CHF 308.0
million) while orders in hand were 39.2% down at CHF 151.8 million
(CHF 249.5 million). The worsening of the operating result by CHF
60.6 million compared with a year ago was due to volume and other
negative effects, to extraordinary items and to cost-saving measures.
This negative EBIT for the Group of CHF 42.2 million corresponds
roughly to the negative EBIT generated by Mühlemann AG and the US
companies plus total goodwill write-downs. Despite the massive drop
in volumes, operating results at the other companies - less
consolidated expenses - had no net effect on earnings.
Order intake and orders on hand were adversely affected by greatly
reduced call-offs from customers in the components business (with
volumes substantially lower than in the previous year) and also to
the downturn - observable since the beginning of the year - in client
investments in technology and systems business.
In the second half of the year, only a few insignificant
extraordinary items are to be expected. However, sales and earnings
in the current financial year 2008/09 are set to be considerably
lower than for the record prior year.
In the core Fineblanking/Forming segment, which accounts for 64% of
sales, the record prior year gave way to a decline in business. Sales
fell 30.9% to CHF 130.6 million (previous year: CHF 189.0 million)
and EBIT decreased - mainly because of the difficult situation in the
USA - to CHF -15.2 million (previous year: CHF 18.1 million). Order
intake contracted to CHF 87.9 million (previous year: CHF 201.3
million), reducing the volume of orders in hand by 36.5% to CHF 107.6
million (year-ago level: CHF 169.5 million). The sizeable backlog of
orders for presses was cleared, but in the meantime demand has fallen
dramatically. Demand for customer services is also declining, though
utilization of toolmaking capacity is gratifyingly high.
We are pleased to report that the Automation segment, which accounts
for 27% of sales, is still in the black. However, the figures for
sales (CHF 54.9 million, down from CHF 70.2 million a year
previously) and EBIT (CHF 1.8 million, down from CHF 4.5 million)
were both lower than in the year-back period. At CHF 36.7 million,
orders in hand were also down year-on-year by a hefty 41.8% due to
48.9% drop in order intake to CHF 38.5 million. All three business
areas, Automation Systems, Automation Components and Fastening
Systems, have been badly hit by the recession, though they have
scored a growing number of successes with new sector-specific
solutions.
The downturn impacted severely on the Plastic/Metal Components
segment: sales fell from CHF 32.6 million in the first half of
2007/08 to CHF 17.8 million, leaving the segment's share of group
turnover at just under 9%. The negative EBIT of CHF -24.1 million
reflects closure costs, impairments and provisions for all Mühlemann
AG orders still entailing contractual obligations. As already
communicated, the Board of Directors has decided, following futile
negotiations, to wind up the segment by the end of 2010. The parent
company Mühlemann AG in Biberist will be closed as of this date and
the small-scale shop-in-shop operation in Nashville will be
integrated in the local branch of Feintool System Parts.
Signs of improvement in the medium term
The current surge in toolmaking orders at the technology centres
suggests that the automotive industry has stepped up its development
and launch activities for new models with lower fuel consumption and
CO2 emissions. In this area, Feintool is constructing tools for the
series production of lighter and lower-cost functional components for
innovative eight-speed automatic gearboxes and dual-clutch
transmission systems. This should generate more orders for tools
within the next 12 months and for parts manufacture in the medium
term. Although the short-term demand for cars is currently declining,
this does not alter the fact that the automotive industry is
anticipating significant growth in the medium term, notably in the
BRIC states. There is thus considerable potential for Feintool to
open up new markets and applications and hence prepare the way for
future growth.
The Board of Directors and Group Management take an upbeat view of
the Feintool Group's future development. New funds totalling about
CHF 10 million will accrue from the sale of treasury stock to
existing shareholders and the exercise of executives' stock options.
Outlook for the 2nd half of the current 2008/09 financial year
The market's transparency remains poor, and news of far-reaching
changes at our global customer companies reaches us almost daily. The
scrappage premium in Germany, for instance, has temporarily boosted
demand in Europe. But announcements from GM, Chrysler and other OEMs
of extended works closures in the summer worsen the chances of an
upturn in the second half of the financial year (period to 30
September 2009). From the present perspective, therefore, sales and
earnings in financial 2008/09 are set to be considerably lower than
for the record prior year.
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| | | | |
| Key figures (CHF | 1st half | 1st half | Change % |
| m) | 08/09 | 07/08 | |
| | | | |
|--------------------+-------------+----------------+---------------|
| Consolidated sales | 202.8 | 291.2 | - 30.3 |
|--------------------+-------------+----------------+---------------|
| EBITDA | -25.0 | 28.7 | n.a. |
|--------------------+-------------+----------------+---------------|
| Op. result (EBIT) | -42.2 | 18.4 | n.a. |
|--------------------+-------------+----------------+---------------|
| Consolidated net | -46.8 | 9.2 | n.a. |
| income | | | |
|--------------------+-------------+----------------+---------------|
| Free cash flow | -31.8 | 21.4 | n.a. |
|--------------------+-------------+----------------+---------------|
| Total assets | 31.3.09 | 30.9.08 | - 14.5 |
| | 406.5 | 475.3 | |
|--------------------+-------------+----------------+---------------|
| Shareholders' | 31.3.09 | 30.9.08 | - 24.3 |
| equity | 154.9 | 204.6 | |
|--------------------+-------------+----------------+---------------|
| Employees | | | - 8.9 |
| Apprentices | 31.3.09 | 30.9.08 | |
| | 1629 | 1789 | - 3.8 |
| | | 30.9.08 | |
| | 31.3.09 | 106 | |
| | 102 | | |
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For further information, please contact:
Urs Feitknecht, media spokesman, +41 (0)32 387 51 63
until 31.5.09 (retirement date)
Karin Labhart, media spokesperson, +41 (0)32 387 51 11 - as of 1.6.09
(successor)
The semi-annual press conference will be held at 10.30 a.m. on 26 May
2009 at the Feintool head office, Industriering 8, Lyss, Switzerland
Feintool is a leading technology and systems provider in
fineblanking/forming and assembly automation. It is also a supplier
of metal and composite components.
Feintool operates globally at the company's own facilities in
Switzerland (head office in Lyss), Germany, France, Italy, Great
Britain, the United States, Japan and China, where around 1700
employees are committed to customer satisfaction.
Feintool International Holding
Industriering 8, CH-3250 Lyss
Phone +41 (0)32 387 51 11
Fax +41 (0)32 387 57 81
feintool-fim@feintool.com
www.feintool.com
Head of Corporate Communications
Urs Feitknecht
Phone +41 (0)32 387 51 63
Fax +41 (0)32 387 54 16
urs.feitknecht@feintool.com
The media release can be downloaded from the following link:
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Feintool International Holding
Industriering 8 Lyss Schweiz
WKN:
905428; ISIN: CH0009320091 ; Index: SPI, SPIEX, SSCI;
Listed: Main Market in SIX Swiss Exchange;