Luterbach, 9 May 2018 – The Schaffner Group posted dynamic growth in the first half of 2017/18 in a positive economic environment. New orders were up 14.8 % year-on-year to CHF 114.4 million (previous year: CHF 99.6 million), and net sales rose 14.5 % to CHF 108.3 million (previous year: CHF 94.6 million). In local currencies, the sales increase amounted to 10.2 %. Operating profit (EBIT) rose substantially to CHF 9.0 million (previous year: CHF 6.0 million), while the EBIT margin increased to 8.3 % (previous year: 6.4 %). The result of the first half of 2017/18 includes various one-time items. Adjusted for the positive impact of the insurance settlement for the fire at the Schaffner plant in Thailand at the end of 2017 as well as costs in connection with the restructuring of the Power Magnetics division, EBIT was CHF 7.5 million and the EBIT margin 6.9%. The net profit of CHF 4.0 million (previous year: CHF 4.2 million) was also affected by a one-time adjustment in connection with the 2017 Tax Cuts and Jobs Act in the USA. Adjusted for these one-time items, the Schaffner Group recorded a net profit of CHF 5.7 million. Earnings per share were CHF 6.24 (previous year: CHF 6.57). Total assets rose to CHF 155.6 million (30.9.2017: CHF 137.3 million). The equity ratio was 35.9 % (30.9.2017: 39.6 %). Free cash flow was CHF -1.6 million (previous year: CHF -3.1 million). The EMC division expanded its leading market position in all market regions in the first half of 2017/18. Segment sales were up 21.4 % to CHF 55.5 million (previous year: CHF 45.7 million). Segment profit also rose 21.4 % to CHF 7.5 million (previous year: CHF 6.2 million). The Power Quality business, which is part of the EMC division, successfully launched the new generation of active harmonic filters and posted growth during the reporting period that exceeded the strong overall increase recorded by the EMC division. Thanks to continued progress in operational excellence and the successful implementation of price adjustments, the segment profit margin was maintained at the high prior-year level of 13.6 %, despite the ongoing margin pressure and higher material costs. The Power Magnetics division increased segment sales despite a weak start in North America by 15.8 % to CHF 27.1 million (previous year: CHF 23.4 million). Under the leadership of the turnaround manager appointed at the end of 2017, the implementation of the restructuring program was accelerated and the structures were streamlined, which generated additional costs in the reporting period. Renegotiations for supply contracts with poor margins are progressing gradually. Year-on-year, the Power Magnetics division reduced the segment loss to CHF 3.2 million (previous year: CHF 3.5 million) and posted a negative segment profit margin before restructuring costs of
-12.0 % (previous year: -14.8 %).
The Automotive division recorded a strong first half of 2017/18. At CHF 25.7 million (previous year: CHF 25.4 million), sales were 0.8 % above the high level of the previous year. The segment result was CHF 8.9 million (previous year: CHF 5.9 million), positively impacted by a one-time effect in connection with the insurance settlement following the fire at the Schaffner plant in Thailand at the end of 2017. The segment profit margin was 34.5 % (previous year: 23.1 %). Adjusted for this one-time effect, the operating profit margin was slightly higher than in the previous year at 23.6 % (previous year: 23.1 %). In the reporting period, additional projects for filters to be used in electromobility were pushed ahead. These projects will have a positive impact on Schaffner's business within the next few years. Outlook In a continuing positive economic environment and at comparable exchange rates, Schaffner expects sales growth to continue. Assuming that material prices remain constant in the second half of the year, Schaffner strives to maintain the EBIT margin (excluding one-time effects) at least at the level of the first half. As before, the Schaffner Group continues to aim for organic sales growth of 5 % per year on a multi-year average basis, and for an EBIT margin of at least 8 % in the medium term. Contacts Marc Aeschlimann Chief Executive Officer T +41 32 681 66 06 marc.aeschlimannschaffner.com | Kurt Ledermann Chief Financial Officer T +41 32 681 66 08 kurt.ledermannschaffner.com |
Half-year report 2017/18 The complete Schaffner half-year report 2017/18 is available at www.schaffner-ir.com.
Click here for the half-year report 2017/18: https://www.schaffner-ir.com/reports/ Conference call and audio webcast, 9 May 2018, 10.00 a.m Marc Aeschlimann, CEO, and Kurt Ledermann, CFO, will comment on the results of the Schaffner Group for the first half of 2017/18 in a conference call. The conference call will be held in German. The dial-in numbers are:
+41 58 310 5000 (Europe) +44 207 107 0613 (UK) +1 631 570 5613 (USA) When registering for the conference call, please state your name and company. The presentation of Schaffner’s half-year results 2017/18 will be broadcast live in an audio webcast. Click here for the audio webcast:
https://78449.choruscall.com/dataconf/productusers/schaffner/mediaframe/24150/indexr.html After the presentation the audio webcast is available as a recording. Click here for the recording:
https://78449.choruscall.com/dataconf/productusers/schaffner/mediaframe/24150/indexr.html Financial calendar 6 December 2018 11 January 2019 | Publication of annual report 2017/18 23rdAnnual General Meeting |
Schaffner Group | Key financials Consolidated income statement | in CHF ‘000 For the first six months (1 October to 31 March) | 2017/18 | 2016/17 | Net sales | 108,281 | 94,579 | EBIT | 8,976 | 6,037 | in % of net sales | 8.3 | 6.4 | Net profit for the period | 3,959 | 4,171 | in % of net sales | 3.7 | 4.4 | Net profit for the period per share in CHF | 6.24 | 6.57 | | | | Consolidated balance sheet | in CHF ‘000 | 31.3.2018 | 30.9.2017 | Total assets | 155,621 | 137,299 | Current assets | 121,502 | 101,633 | Non-current assets | 34,119 | 35,666 | Total liabilities | 99,829 | 82,899 | Shareholders' equity | 55,792 | 54,400 | Equity ratio in % | 35.9 | 39.6 | | | | Cash flow | in CHF ‘000 For the first six months (1 October to 31 March) | 2017/18 | 2016/17 | Cash flow from operating activities | 2,829 | -838 | Cash flow from investing activities | -4,978 | -1,041 | Cash flow from financing activities | 10,217 | 6,569 | Free cash flow | -1,618 | -3,093 | | | | Segment reporting | in CHF ‘000 For the first six months (1 October to 31 March) | 2017/18 | 2016/17 | EMC division | | | Segment sales | 55,544 | 45,746 | Segment profit | 7,534 | 6,207 | in % of segment sales | 13.6 | 13.6 | Power Magnetics division | | | Segment sales | 27,079 | 23,386 | Segment profit | -3,243 | -3,461 | in % of segment sales | -12.0 | -14.8 | Automotive division | | | Segment sales | 25,658 | 25,447 | Segment profit | 8,862 | 5,887 | in % of segment sales | 34.5 | 23.1 | | | | Key share figures | 31.3.2018 | 30.9.2017 | Numbers of shares | 635,940 | 635,940 | Shareholders' equity per share in CHF | 87.73 | 85.54 | Share price in CHF | 293 | 317 | Market capitalization in CHF Mio. | 186 | 202 |
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