Georg Fischer : Record result for Georg Fischer

The key ratios of all three Corporate Groups are pointing upwards. GF Automotive achieved gratifying progress in both sales and earnings. GF Piping Systems again grew strongly, posting another improvement in earnings on sales that were just below CHF 1 billion. GF AgieCharmilles also grew in a year that was marked by the fast pace of numerous changes and it lifted earnings to a healthy level.

GF Automotive increased sales revenues to CHF 1.93 billion, a 9 percent increase. That this was possible without any investment in additional capacity is due to the constant efficiency gains achieved in the plants. The biggest challenge in the light metal segment was outsourcing production from Munich to other plants at the same time as demand was on the increase and aluminium prices were rising. Posting EBIT of CHF 142 million and an EBIT margin of 7.4 percent, the Corporate Group lifted earnings by 42 percent. It took some key strategic steps towards a more global focus by expanding its business in China and buying a light metal foundry in Canada. GF Automotive increased its order books by 16 percent over the previous year, setting the stage for a strong 2007.

GF Piping Systems took advantage of the favourable economic environment to capture further market share. Sales came to CHF 0.98 billion. Adjusted for disposals and currency translation effects, this equates to organic growth of 16 percent. The growth was driven by all regions, in particular by Eastern Europe, the Middle East and Asia.

The sales increase came to 36 percent in China; 80 percent of the products sold in China were manufactured locally. The markets outside Western Europe now generate 40 percent of the Corporate Group's sales. Sales per customer also increased sharply, which was attributable in part to bundling by application segments. Posting EBIT of CHF 109 million - equivalent to an EBIT margin of 11.1 percent - the Corporate Group improved its profitability by more than a third within a year and has more than doubled it in the past three years. The Corporate Group is poised to maintain its growth course in 2007.

GF AgieCharmilles lifted its sales by 8 percent to CHF 1.14 billion. The increase stems from all market regions. Owing to marked progress in the second half of the year and the ongoing drive to cut costs, EBIT improved to CHF 91 million and the EBIT margin climbed to 8.0 percent. Numerous strategic projects to generate synergies are in full swing and they will have a positive impact on the numbers in the medium term. A slowdown in the growth trend cannot be ruled out for some markets in 2007.