Semi-annual financial statements 2014: Looser Holding reports slight revenue growth

In the first six months of 2014, Looser Holding AG, headquartered in Arbon (Switzerland), generated consolidated net revenues of CHF 243.9 million. Thus revenues increased by 3.4 percent from the prior year. After adjustments for currency, acquisition and divestment effects, a slight growth in revenues by 0.2 percent was reported. This was mainly due to increased revenues (in local currencies) in three out of Looser's four segments. The operating result (EBITDA) of CHF 30.6 million also surpassed the prior year level (prior year: CHF 28.2 million). The EBITDA margin rose to 12.6 percent (prior year: 11.9 percent).

In the first half-year, the Looser Group achieved consolidated net income of CHF 9.7 million (prior year: CHF 11.2 million). Extraordinary currency losses in the amount of CHF 1.5 million relating to the disposal of the industrial coatings product area (Feycolor Group) had a negative impact on consolidated net income. On a comparable basis, consolidated net income remained at the prior year level. The balance sheet structure continues to be sound with an equity ratio of 40.1 percent.

Compared to the 2013 financial statements, net debt rose by CHF 6.4 million to CHF 151.2 million. This increase was primarily due to the cash distribution from capital contribution reserves in April and the seasonally higher amount of capital tied-up in net current assets.

Coatings: demanding market environment

With net revenues of CHF 85.5 million, the Coatings segment reported a decline in revenues for the first half-year (prior year: CHF 101.2 million). After adjustments for currency effects and the effects of the disposal of the Feycolor Group, the decline amounted to 6.1 percent. Compared to the first six months of 2013, demand in the product areas of wood coatings, packaging coatings and non-stick coatings decreased due to the generally more demanding market environment in several European countries. In China, on the other hand, the non-stick coatings product area recorded an increase against the background of the positive market development and generated a significant revenue growth against the previous year. The segment's operating result declined to CHF 9.6 million from CHF 10.7 million in the prior year. The EBITDA margin rose to 11.2 percent (prior year: 10.6 percent).

The market environment for the Coatings segment is expected to remain difficult in the second half of 2014.

Industrial Services: increase in revenues

Net revenues in the Industrial Services segment (Condecta Group) rose by 1.3 percent to CHF 28.1 million in the first six months. Revenue growth after currency adjustments was 1.4 percent. Demand for rental modular space systems and cranes experienced a positive development. Demand in the area of trading operations also saw a positive development in the first six months. The Industrial Services segment generated EBITDA of CHF 7.5 million and thus outperformed the prior year figure by CHF 0.4 million.

Due to current market developments and the expected continuously stable demand in the area of rental modular space systems, a positive development is anticipated for the second half of the year.

Temperature Control: increasing revenues and margin

Compared to the prior year period, net revenues in the Temperature Control segment (Single Group) increased by 6.3 percent to CHF 18.8 million (prior year: CHF 17.7 million). Growth after currency adjustments amounted to 7.0 percent. The segment benefited from the market growth in the area of applications for the semi-conductor industry. The operating result improved from the prior year period by CHF 0.5 million to CHF 1.7 million (prior year: CHF 1.2 million). The rise in the EBITDA margin to 9.3 percent (prior year: 6.6 percent) emphasizes the positive development in the Temperature Control segment.

In view of current order backlogs and orders received, primarily in the area of the semi-conductor industry, developments should continue at the current high level also in the second half of the year.

Doors: positive development

Following the challenging financial year 2013, the Doors segment (Prüm-Garant Group, Invado) experienced a gratifying development during the first six months. Net revenues in the segment increased by more than 20 percent against the prior year to CHF 114.0 million (prior year: CHF 91.6 million). After adjustments for the effects of the previous year's acquisition (Invado Sp. Z o.o.) and currency effects, the segment reported a 5.5 percent organic growth. Demand in the market for interior doors was markedly higher than in the first six months of the previous year. Furthermore, the number of orders received from the German construction sector was substantial. The operating result in the Doors segment improved to CHF 14.6 million (prior year: CHF 11.9 million). Thus the EBITDA margin of 12.8 percent remained at the prior year level (prior year: 13.0 percent).

In view of the positive demand situation in the construction sector and the large number of building permits granted in Germany and Poland, the chances for a positive revenue development in the second half of 2014 are good.

Outlook

For the second half of 2014, the Board of Directors and Group Executive Management expect the segments to generally continue their stable development. A possible exception will be the Coatings segment as a consequence of the continuously difficult market environment. Looser Holding is maintaining its prognosis for the entire financial year, expecting revenues and an operating result above the prior year level as well as a significant increase in consolidated net income.

Key figures of the Looser Group

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Key figures Coatings segment

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Key figures Industrial Services segment

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Key figures Temperature Control segment

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Key figures Doors segment

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