FEINTOOL INTERNATIONAL HOLDING AG 24.08.2015
Technology company Feintool's long-term strategy of concentrating on fineblanking and forming coupled with systematic internationalization and technical innovation has paid off. Between 1 January and 30 June 2015, Feintool achieved sales of CHF 244 million, thus equalling the previous year's figure despite difficulties on the currency front. Although the Swiss sites suffered due to the Swiss franc-euro exchange rate situation, the Group posted an EBIT margin of six percent.
The global automotive industry was on good form overall in the first half of 2015. The North American market remained at the previous year's high level, while automotive production in Europe recovered slightly from the prior-year low and the Asian market continued to grow, though at a slightly slower pace. Estimates indicate that global automotive production expanded by 1% compared with the previous year.
Satisfactory business situation
On a currency-adjusted basis, consolidated sales rose by 4.3% year-on-year to CHF 243.7 million. Both of the Swiss manufacturing facilities suffered a considerable decline in earnings amounting to CHF 3.3 million owing to the Swiss franc's appreciation against the euro. Overall, however, the Group generated EBITDA of CHF 28.3 million and an operating result (EBIT) of CHF 14.6 million. This is equivalent to an EBITDA margin of 11.6% and an EBIT margin of 6%. This performance is the result of the systematic focus on fineblanking and forming, and continued internationalization with production facilities in all the major automotive markets. Net income for the period under review came to CHF 7.4 million.
Free cash flow amounted to CHF -10.4 million. This includes expenditures for investments - e.g. in company-owned infrastructure and in the purchase of a new production facility in eastern Germany - totalling CHF 19.8 million.
Orders received in the investment goods business fell by 4.1% to CHF 44.3 million in the first six months of the year. However, the second quarter showed an increase - albeit at a low level - of 9.6%.
All segments and regions positive
Sales in the parts manufacturing segment (System Parts) rose 3.2% to CHF 211.9 million. All regions continued to grow in terms of their local currency. On a currency-adjusted basis, sales were up 8.8%. Europe accounted for 50.5% of sales. The US share was 39.4%, while that of Asia came to 10.1%. Changes from the previous year are heavily influenced by currency translation into Swiss francs.
With third-party sales of CHF 31.8 million, the Fineblanking Technology segment contributed 13% to the Group's sales.
Optimistic outlook
Feintool expects a generally positive business performance in the second half of the year too. Based on current overall conditions, sales of around CHF 500 million and an EBIT margin of between six and seven percent seem realistic. For the medium term, the company is reiterating its objective of lifting sales to CHF 600 million and operating margin to 8%.
Key financial figures in brief
Change in local currency in percent2 | Change in percent2 | 01.01.-30.06.2015 in CHF m | 01.01.-30.06.2014 in CHF m | |
Net sales1 | 4.3 | -0.5 | 243.7 | 244.9 |
EBITDA1 | -1.6 | -7.6 | 28.3 | 30.6 |
Operating profit (EBIT)1 | -9.0 | -15.7 | 14.6 | 17.4 |
Net income1 | -32.5 | -38.1 | 7.4 | 12.0 |
Free cash flow | -76.2 | -10.4 | -5.9 | |
Total assets (comparative period ended 31.12.2014) | -3.2 | -5.7 | 403.1 | 427.4 |
Shareholders' equity (comparative period ended 31.12.2014) | -11.5 | -9.0 | 184.7 | 202.9 |
Sales1 | ||||
Fineblanking Technology segment | -15.3 | -15.5 | 39.8 | 47.1 |
System Parts segment | 8.8 | 3.2 | 211.9 | 205.3 |
Total Feintool group, consolidated | 4.3 | -0.5 | 243.7 | 244.9 |
Orders received - investment goods1 | -3.9 | -4.1 | 44.3 | 46.2 |
Orders backlog- investment goods1 | 11.5 | 11.7 | 41.9 | 37.5 |
Expected releases - series parts production1 | 5.9 | 0.3 | 199.2 | 199.8 |
Change in local currency in percent2 | Change in percent2 | 01.04.-30.06.2015 in CHF m | 01.04-30.06.2014 in CHF m | |
Sales1 | ||||
Fineblanking Technology segment | -2.8 | -3.4 | 23.2 | 24.0 |
System Parts segment | 6.9 | 0.5 | 105.4 | 104.8 |
Total Feintool group, consolidated | 4.6 | -0.8 | 123.7 | 124.7 |
Orders received - investment goods1 | 10.0 | 9.6 | 21.0 | 19.2 |
1 Continuing operations
2 Compared to the prior-year period
Please find the complete results for the first half-year of 2015
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