The SGS Group delivered a strong performance in 2011 with revenue growth of 13.7% over prior year (constant currency basis) to CHF 4.8 billion. Organic revenue growth reached 10.5% supported by all regions and by particularly strong activity levels in Minerals, Consumer Testing, Industrial and Environmental services. Adjusted Operating Income, up 10.7% over prior year (constant current basis), reached CHF 815 million, resulting in a margin of 17.0% slightly down from 17.4% in prior year (constant currency basis) due to investments made to sustain long-term growth targets.Net profit at CHF 534 million increased 4.9% from the comparable period (constant currency basis). Operating cash flows remained strong at CHF 690 million, enabling the Group to comfortably fund CHF 337 million of fixed asset investments and complete twenty-two acquisitions for a total cash consideration of CHF 104 million.
During the year, the Group also raised CHF 725 million in additional liquidity through the issuance of corporate bonds. The board of directors will propose a dividend of CHF 65 per share, CHF 30 representing an ordinary distribution of 43% of net profit and an additional CHF 35 reflecting the healthy cash generation capabilities of the Group. The Board of Directors has also authorised another share buy-back programme of up to CHF 250 million.
ABOUT SGS
SGS is the world's leading inspection, verification, testing and certification company. SGS is recognized as the global benchmark for quality and integrity. With more than 70,000 employees, SGS operates a network of over 1'350 offices and laboratories around the world.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Jean-Luc de Buman
Corporate Development,
Communications & IR
SGS SA, 1211 Geneva 1
Tel (+41-22) 739 91 11
Fax (+41-22) 739 92 00
E-mail: sgs.investor.relations@sgs.com
Web site: www.sgs.com
