An operating result of CHF 7.8 million (CHF 1.2 million in 2001-2002) was achieved on consolidated sales of CHF 409.0 million (CHF 417.4 million in 2001-2002). After the previous year's loss of CHF 7,3 million, Feintool has now returned to the black with a net profit of CHF 1.6 million. The programme of restructuring and efficiency-enhancing measures initiated a year ago has proven effective. However, the Board of Directors will be proposing to the forthcoming Annual General Meeting that no dividend be paid.
While the technology companies operating in presses and systems had to contend with a low level of capital spending among customers, Feintool's global component suppliers grew both their sales and profits. The relatively stable automotive industry, where Feintool has focused particularly on the growing markets for passenger comfort and security systems, contributed to this result.
With orders in hand significantly higher than at the beginning of the previous financial year, Feintool is starting 2003-2004 with brighter prospects and a good chance of returning to growth again.
As already announced, Reto Hartmann will be taking over as CEO of the Feintool Group on 1 January 2004.
|
Key figures (CHF m) |
02/03 |
01/02 |
Change in % |
|
Consolidated sales |
409.0 |
417.4 |
-2.0 |
|
EBITDA |
27.0 |
28.8 |
-6.2 |
|
Operating result (EBIT) |
7.8 |
1.2 |
+650 |
|
Net income |
1.6 |
-7.3 |
|
|
Total assets |
317.5 |
320.9 |
|
|
Shareholders' equity |
125.8 |
130.8 |
|
|
Net debt |
71.1 |
69.4 |
+2.5 |
|
Number of employees (30.9.) |
1769 |
1683 |
+5.1 |
Fineblanking/Forming shows potential
Total sales rose around 1.6% year-on-year from CHF 242.3 million to CHF 246.2 million, while the operating result remained at the previous year's level of CHF 14.4 million.
The systems business continued to suffer the effects of sluggish investment activity and customers' postponements of major projects. By contrast, the Technology Services section, which comprises engineering, prototyping, tool production, training and customer service, was able to improve its performance. The repositioning of Schmid, the second fineblanking press brand, had a beneficial impact, as sales of Schmid rose by around 45% year-on-year to generate a positive result. The potential for improvement in the systems business will be exploited even more intensively in the current financial year.
Feintool's European and Japanese parts manufacturing facilities achieved significant sales growth on the last financial year. The US parts production facilities also increased their sales in local currency. However, the positive result was pushed downwards by up-front costs for a number of new start-ups. Business success depends on continuing to focus on the growth market for passenger comfort and security systems in the automotive industry and on winning new and primarily global customers. The signing of new supply contracts will help the US factories in particular to achieve even higher capacity utilization in the medium term.
Worst over in Automation
At CHF 98.1 million, sales fell by 15.1% on the previous year's figure of CHF 115.6 million. The operating result decreased from CHF 1.2 m to CHF 0.8 m
The systems business was hit by the "wait and see" attitude to investment, especially in the telecoms and mobile phone industries. With such new developments as "modutec", a modular, highly standardized assembly system which made its public debut at Motek in September, the division is responding to changed customer needs and creating a sound basis for future growth.
Despite interesting innovations and a redoubling of marketing efforts, the assembly components business (United Components) could not escape the effects of the slump in the special-purpose machine construction industry. Thanks to the slight upturn in the sector and an increased number of orders in hand, all the division's facilities are enjoying a good level of capacity utilization as they enter the new financial year.
At CHF 98.1 million, sales fell by 15.1% on the previous year's figure of CHF 115.6 million. The operating result decreased from CHF 1.2 m to CHF 0.8 m
The systems business was hit by the "wait and see" attitude to investment, especially in the telecoms and mobile phone industries. With such new developments as "modutec", a modular, highly standardized assembly system which made its public debut at Motek in September, the division is responding to changed customer needs and creating a sound basis for future growth.
Despite interesting innovations and a redoubling of marketing efforts, the assembly components business (United Components) could not escape the effects of the slump in the special-purpose machine construction industry. Thanks to the slight upturn in the sector and an increased number of orders in hand, all the division's facilities are enjoying a good level of capacity utilization as they enter the new financial year.
Plastic/Metal Components has achieved turnaround
With an 11.1% increase in sales to CHF 66.4 million, the Segment significantly improved on the previous year's figure of CHF 59.8 million. It also generated a positive operating result of CHF 0.2 million (CHF -9.5 million in 2001-2002). This is due to a greater number of call-ups from current orders and to improved processes. The Segment's project list of innovative, complex composite components is extensive and should stimulate further growth over the next few years, as well a number of new start-ups at the Biberist and Nashville plants.
With an 11.1% increase in sales to CHF 66.4 million, the Segment significantly improved on the previous year's figure of CHF 59.8 million. It also generated a positive operating result of CHF 0.2 million (CHF -9.5 million in 2001-2002). This is due to a greater number of call-ups from current orders and to improved processes. The Segment's project list of innovative, complex composite components is extensive and should stimulate further growth over the next few years, as well a number of new start-ups at the Biberist and Nashville plants.
Finances remain sound
The balance sheet total of CHF 317.5 million, net debt of CHF 71.1 million, shareholders' equity of CHF 125.8 million and equity ratio of 39.6% are still within the target range.
The balance sheet total of CHF 317.5 million, net debt of CHF 71.1 million, shareholders' equity of CHF 125.8 million and equity ratio of 39.6% are still within the target range.
New CEO takes over on 1 January 2004
Reto Hartmann will assume responsibility as Chief Executive Officer of the Feintool Group on 1 January 2004, taking over from Deputy Board Chairman Michael Funk, who has held the position on an interim basis. The Board of Directors feels confident that Mr Hartmann, assisted by Feintool's highly capable Group management team, will keep the Group on course and continue the positive trend.
Reto Hartmann will assume responsibility as Chief Executive Officer of the Feintool Group on 1 January 2004, taking over from Deputy Board Chairman Michael Funk, who has held the position on an interim basis. The Board of Directors feels confident that Mr Hartmann, assisted by Feintool's highly capable Group management team, will keep the Group on course and continue the positive trend.
Based in Lyss, Switzerland, Feintool is a leading technology and systems provider in fineblanking/forming and assembly/automation. It is also a supplier of metal and plastic components.
Feintool operates globally with approximately 1700 employees at the company's own facilities in Switzerland (head office in Lyss), Germany, France, Italy, Great Britain, the United States, Japan and China. Around half its employees are located in Switzerland.
For further information, please contact:
Michael Funk, interim CEO, or Reto Welte, CFO
Phone +41 (0)32 387 51 11, fax +41 (0)32 387 57 81
e-mail investor.relations@feintool.ch
Michael Funk, interim CEO, or Reto Welte, CFO
Phone +41 (0)32 387 51 11, fax +41 (0)32 387 57 81
e-mail investor.relations@feintool.ch
The media release including tables can be downloaded from the following link:
