Georg Fischer : achieves strong growth

The achievements in the first half of 2007 paint a gratifying picture. Although Georg Fischer was able to take advantage of the favourable economic environment, the results are also proof that the Corporation is in good shape operationally.

At CHF 2,248 million, the Corporation's sales were 13 % up on the previous year (CHF 1,993 million). Adjusted for the positive currency effects and minor changes in the scope of consolidation, the rate of growth was 10 %. The market success across all Corporate Groups was underpinned by a favourable economic climate in almost all markets. GF Piping Systems and GF Automotive posted the highest growth rates of 16 % and 15% respectively. GF AgieCharmilles also continued to advance (+6 %). Year-on-year, the Corporation's sales increased 17 % in the core European market and 5% in Asia, while falling 9% in the Americas. Accounting for 41 % of sales, the German market made a substantial contribution to the Corporation's growth by delivering an increase of 13 %.

The Corporation's earnings once again grew faster than sales in the first half of 2007. At CHF 192 million, EBIT was 19% up on the previous year (CHF 161 million). All Corporate Groups improved their profitability. GF Automotive increased its EBIT margin to 8.0 %, GF Piping Systems posted a further sharp increase to 13.1 %, and GF AgieCharmilles was also up on the previous year with a margin of 6.8 %.

At CHF 136 million, net profit was 16 % up on the previous year (CHF 117 million). Free cash flow amounted to CHF 30 million. The majority of free cash flow is usually generated in the second half of the year. The difference versus the first half of the previous year is due to disposal proceeds recognized in the financial statements in 2006. Having risen compared with both the previous year and the end of 2006, net debt amounted to CHF 454 million. The positive trend toward a reduction in debt was obscured by the CHF 101 million distribution in the form of a par value reduction and the acquisition of the remaining shares in Agie Charmilles Holding AG in the amount of CHF 52 million.