Currency effects and reduced demand had a negative impact on revenues and results of operations

In the first nine months of 2015, Looser Holding AG, headquartered in Arbon (Switzerland), generated consolidated net revenues of CHF 330.7 million (prior year: CHF 370.8 million). Thus net revenues declined by 10.8 percent from the previous year. The decline after adjustments for currency effects amounted to 2.8 percent. The operating result (EBITDA) was reduced to CHF 36.8 million compared to CHF 48.0 million in the prior year. The EBITDA margin amounted to 11.1 percent (prior year: 13.0 percent). The appreciation of the Swiss franc and generally weakened demand, in particular in the Coatings segment, had a significant impact on revenues and results of operations in the first nine months of 2015.

Consolidated net income declined to CHF 9.1 million (prior year: CHF 17.0 million) due to the reduced result of operations. The balance sheet continued to be sound with a 41.1 percent equity ratio.

Net debt decreased by CHF 10.9 million from the comparable prior year date and remained unchanged from the level reported in the 2014 financial statements.

Detailed segment information

Net revenues in the Coatings segment declined by 16.7 percent from the prior year level and by 14.9 percent after currency adjustments. On the one hand, demand weakened further in all product areas (wood, non-stick and packaging coatings). On the other hand, in addition to the effects of the strong Swiss franc, the current economic environment in China had a negative impact on the development of revenues. A 4.5 percent decline in revenues compared to the prior year period was reported in the Industrial Services segment. Revenues after currency adjustments fell by 3.3 percent. While trading activities in the areas of cranes, modular space systems and construction machinery experienced a slight decline, the rental business and in particular the Event Services product area recorded a stable development so that the share of rental income in total revenues increased marginally over the prior year. Net revenues in the Temperature Control segment declined by 14.2 percent from the prior year and by 2.8 percent after currency adjustments. Declining revenues from applications for the semi-conductor industry could not be offset by positive developments in the core business. The Doors segment again saw a positive development. Net revenues after currency adjustments increased by 6.2 percent from the prior year period.

Change from IFRS to Swiss GAAP FER

The Board of Directors decided to change the accounting standards from IFRS to Swiss GAAP FER. This resolution will be implemented retroactively from the 2014 financial year when drawing up the 2015 financial statements. The registered shares of Looser Holding AG will continue to be listed on the SIX Swiss Exchange and to be a component of the Swiss Performance Index (SPI).

The change from IFRS to Swiss GAAP FER will mainly involve adjustments with respect to the accounting for business combinations (treatment of goodwill and intangible assets arising from acquisitions) as well as pension obligations (IAS 19). Under Swiss GAAP FER, goodwill within the Looser Group will in the future be capitalized and amortized over the useful life. As far as pension obligations are concerned, the Looser Group's liabilities under existing retirement benefit plans will be much lower pursuant to Swiss GAAP FER. From today's point of view, Looser Holding AG anticipates that, due to the change to Swiss GAAP FER, its equity base will continue to be sound at approximately 33 percent and its EBIT margin will be reduced by up to 1.5 percentage points.

Outlook for 2015

For the full financial year Looser Holding AG expects a decline in revenues by 10 to 12 percent and a reduced EBITDA margin compared to the prior year.

Key figures Looser Group

(Amounts in thousands of CHF)

Key revenue figures of the segments

(Amounts in thousands of CHF)