Belimo with impressive profitability

BELIMO Holding AG / Belimo with impressive profitability . Processed and transmitted by Thomson Reuters ONE. The issuer is solely responsible for the content of this announcement. Press release of the Belimo Group - Hinwil, March 11, 2013, 7:00 a.m. The year 2012 was a positive one for the Belimo Group despite a rather difficult market environment. Sales in Swiss francs rose by 6.9 percent to CHF 444.6 million. Adjusted for currencies, this is equivalent to growth of 5.4 percent. The result was an operating income (EBIT) of CHF 76.3 million and thereby an operating margin of 17.2 percent. Net income was CHF 61.4 million, which is equal to earnings per share of CHF 100.74 (previous year CHF 84.61). Return on equity (ROE) rose from 23.3 to 25.0 percent, and return on invested capital (ROIC) from 28.4 to 30.4 percent. Cash flow from operating activities amounted to CHF 82.8 million, and free cash flow was CHF 60.5 million. Overall, cash and cash equivalents were up year-on-year by CHF 30.0 million to CHF 105.4 million. All these figures are significantly higher compared to previous year. The Board of Directors will propose a dividend of CHF 60 per share (previous year CHF 50) to the Annual General Meeting on Monday, April 8, 2013. Innovative product line helps boost sales. Sales developed well in 2012 thanks to the multifaceted and innovative product range. All markets posted stronger growth in water applications than in air applications. The growth in sales varied by region: Europe. Sales in the Europe market region grew by 4.1 percent, and on a currency-adjusted basis by 5.7 percent. Virtually all the Group's subsidiaries reported higher results than a year ago. Growth was very positive in Germany, Poland, Austria, Italy and the Middle East. Spain was hit strongly by the recession. In terms of products, growth was again driven by water applications, followed by the fire protection product range. Americas. After its excellent growth in the previous year, the Americas market region performed well again, growing by 10.9 percent, and on a currency-adjusted basis by 5.9 percent. The economic environment in the United States continued to recover slowly, but yet continuously. Brazil performed very well. Canada did not meet expectations, yet still displayed a positive trend towards the end of the year. Sales with OEM customers developed very well, and also sales in the contracting business were boosted considerably. Asia/Pacific. Growth in the Asia/Pacific region was disappointing at 8.0 percent, and on a currency-adjusted basis at 1.7 percent. Economic growth slowed in various important markets. The measures introduced in China to avoid an overheating of the real estate market continued to have a noticeable impact. Net sales by region Growth  in local currencies in CHF 1,000 2012 %  in % 2011 % Europe 239,063 54 5.7 229,612 55 Americas 161,279 36 5.9 145,381 35 Asia/Pacific 44,281 10 1.7 40,990 10 ------------------------------------------------------------ Group 444,623 100 5.4 415,983 100 ------------------------------------------------------------ Net sales by application Growth in local currencies in CHF 1,000 2012 %  in % 2011 % Air 269,373 61 4.0 256,529 62 Water 175,250 39 7.5 159,454 38 ------------------------------------------------------------ Total 444,623 100 5.4 415,983 100 ------------------------------------------------------------ Innovation. The Belimo Energy Valve(TM) was the first product on the market to be launched with a built-in sensor and integrated intelligence. Thanks to this control valve, customers are able to save energy, thereby cutting operating costs and avoiding unnecessary investments. At the same time, the product displays energy flows and increases operational safety. For the American market the ZIP Economizer(TM) was developed. It enables optimal use of outside air to save energy needed for cooling. Outlook. The year 2013 may see the global economy gaining a bit of momentum. However, the pace of growth will still vary from market to market. Although there is some uncertainty on the European markets, information from the major markets indicates that growth is expected to continue in 2013 as well. In the American market, activity in the construction sector may well continue to develop positively. In addition, the ongoing trend to improve energy efficiency in buildings makes Belimo optimistic. In the Asia/Pacific market, Belimo hopes for accelerated economic growth and construction activity. For 2013, the development of a small valve with an actuator specially designed for zone applications is planned. Its most attractive features are its slender design and very installation-friendly, tool-free plug-in assembly. In the future, Belimo will continue to pursue its very ambitious aims of steady sales growth and a solid profitability. With innovative and energy-efficient solutions, Belimo is well on its way to achieving these goals. Key figures of the Belimo Group for the 2012 financial year in CHF 1,000 (unless specified otherwise) 2012 2011 Change in % Net sales 444,623 415,983 6.9 ------------------------------------------------------------------------- Operating income (EBIT) 76,303 67,787 12.6 in percent of net sales 17.2% 16.3% ------------------------------------------------------------------------- Net income 61,426 51,556 19.1 in percent of net sales 13.8% 12.4% ------------------------------------------------------------------------- Cash flow from operating activities 82,818 57,359 44.4 in percent of net sales 18.6% 13.8% ------------------------------------------------------------------------- Free cash flow 60,513 41,313 46.5 in percent of net sales 13.6% 9.9% ------------------------------------------------------------------------- Earnings per share, in CHF 100.74 84.61 19.1 ------------------------------------------------------------------------- Dividend per share, in CHF 60* 50 20.0 ------------------------------------------------------------------------- Investments 19,864 16,466 20.6 ------------------------------------------------------------------------- Research and development 27,344 27,564 -0.8 in percent of net sales 6.1% 6.6% ------------------------------------------------------------------------- Number of employees at December 31 1,227 1,172 4.6 (FTE's) ------------------------------------------------------------------------- * Proposal to the Annual General Meeting on April 8, 2013 The Belimo Group is a leading global manufacturer of innovative electrical actuator solutions for heating, ventilation and air-conditioning systems. The Group generated sales of CHF 445 million in 2012 and employs close to 1,300 people. Information about the company and its products is available on the Internet at www.belimo.com/investorrelations. The shares of BELIMO Holding AG have been traded on the SIX Swiss Exchange since 1995 (BEAN). There will be a media information session on the 2012 financial statements at the WIDDER HOTEL in Zurich today, starting at 10:30 a.m. Link to Annual Report 2012 Contact Beat Trutmann, CFO Phone +41 43 843 62 65 Agenda Media information session /   publication of 2012 Annual Report  March 11, 2013   Annual General Meeting 2013  April 8, 2013   Semiannual Report 2013  August 6, 2013   Publication of 2013 preliminary results February 2014   Media information session /   publication of 2013 Annual Report  March 17, 2014   Annual General Meeting 2014 April 14, 2014 The press release can be downloaded from the following link: Press release (PDF): http://hugin.info/100133/R/1683988/551293.pdf This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. Source: BELIMO Holding AG via Thomson Reuters ONE [HUG#1683988]