The technology company looks back on a positive financial year: Compared to the previous year, sales increased in 2016 to CHF 552 m; growth in local currency was nearly 6%. The operating result (EBIT) increased by more than 20% compared to the previous year, to more than CHF 41 m. The operating margin amounted to 7.5%.
Organic higher sales The global automobile industry continued to grow in 2016. Feintool benefitted from this positive industry trend and grew - despite challenging demands - by outpacing the market in every relevant region.
The Feintool Group generated sales of CHF 552.2 m in the 2016 financial year, which corresponds to an increase of 8.5%. Adjusted for currency effects, the company achieved a growth of 5.9%.
The System Parts segment, in which Feintool is globally present with the high-volume production of precise fineblanked and formed components, accounts for the largest share of sales. In the reporting year, the segment grew in local currency by 6.5% to CHF 479.3 m, thus generating 86.8% of the consolidated sales. This increase is primarily due to the increased global volume of new products in Europe in comparison to the previous year.
In the Fineblanking Technology segment, in which Feintool provides comprehensive technological solutions for fineblanking, sales totaled CHF 92.7 m. The 4.9% increase compared to the previous year in local currency is due to the pick up of press sales in Asia as well as increased internal orders.
Vastly improved operating profit All segments and regions made a positive contribution to the operating profit this year as well. The Feintool Group generated an EBIT of CHF 41.3 m, which is a significant increase of 20.8% in local currency. The operating business achieved an EBIT margin of 7.5%.
The System Parts segment achieved an EBIT of CHF 44.4 m and an EBIT margin of 9.3%. The sales growth due to the good automobile economy and new launches or ramp-ups of many products led once again to higher capacity utilization at most companies, which had a positive impact on margins overall. The programs for increasing efficiency at all locations and higher added value have supported this pleasing development.
In the Fineblanking Technology segment investment goods business, Feintool generated an operating profit of CHF 4.3 m. The margin fell to 4.7% compared to the previous year. The main reason for this development is the increased research expenses of CHF 5.6 m as an investment in the future as well as costs in the amount of CHF 1.2 m for the reorganization of the China business.
Group result has risen Feintool generated a consolidated net income of CHF 32.1 m overall, which equates to a margin of 5.8%.
Numerous orders and expected releases The expected releases from our customers in the high-volume parts business for the next six months total CHF 240.9 m. This value increased by 14.9% and is now at a record high at the end of the year. Accordingly, our customers expect a positive market environment in every region.
Orders received in the Fineblanking Technology segment fell by 8.8% to CHF 85.8 m, with CHF 28.6 m stemming from the System Parts segment, which was significantly more than in the previous year. Thus, third-party orders received fell to CHF 57.2 m. The orders backlog decreased by 18.8% to CHF 35.1 m, with CHF 16.0 m from intragroup orders. The order backlog is therefore about six months.
Higher dividend planned In view of the positive financial results as well as the stable financial position, the Board of Directors will therefore propose to the Annual General Meeting on April 25, 2017, that it increase the dividend from capital contributions by one-third to CHF 2.00 per Feintool share.
Expansion of market capacity With the goal of opening up further market segments and expanding production capacities in the European fineblanking business, Feintool is building a new plant in Most (Czech Republic). Thus, the company is fulfilling the customer desire for global suppliers that can master both basic and complex applications and are also close to the customer. The System Parts segment will develop its market position for production of simpler and less complex fineblanked components and for assembly production while Fineblanking Technology will focus on the manufacture of simple and medium-complexity fineblanking tools and spare parts. Production is planned to start mid 2018.
In addition, Feintool announced in February 2017 that it would acquire the Chinese forming plant founded in 2014 in Tianjin by the German Schuler Group. Existing orders are in the ramp-up phase; further investments and expansion are planned in the next two years. The acquisition allows Feintool to close the strategic loophole and now offer sophisticated forming applications in all important automotive markets, thus continuing to expand its market position.
Change in the Board of Directors Dr. Kurt E. Stirnemann and Wolfgang Feil, who have been members of the Board of Directors for many years, will not stand for re-election at the General Meeting of April 25, 2017. As has already been announced, the election of Heinz Loosli, CEO of the Feintool Group between 2009 and 2016, as member will be proposed to the Board of Directors.
Positive outlook Feintool is generally expecting to develop positively in 2017, albeit in market conditions that are shaped by political uncertainty. Without the influence of the latest acquisition of the Chinese forming plant, we expect turnover of around CHF 580 m and an EBIT margin of 7.5% - 8%.
The key figures at a glance
| 2016 in CHF m | 2015 in CHF m | Change in % | |
| Net revenue of the Feintool Group | 552.2 | 508.9 | +8.5 |
| Fineblanking Technology segment | 92.7 | 87.8 | +5.6 |
| System Parts segment | 479.3 | 438.0 | +9.4 |
| Earnings before interest, taxes, depreciation and amortization (EBITDA) without one-off effect* | 76.0 | 61.4 | +23.7 |
| Earnings before interest, taxes, depreciation and amortization (EBITDA) | 83.1 | 61.4 | +35.2 |
| Operating profit (EBIT) without one-off effect* | 41.3 | 32.9 | +25.6 |
| Fineblanking Technology segment | 4.3 | 4.6 | -5.6 |
| System Parts segment | 44.4 | 35.8 | +23.9 |
| Operating profit (EBIT) | 48.4 | 32.9 | +47.2 |
| Group result | 32.1 | 20.1 | +59.7 |
| Total assets | 530.7 | 426.9 | +24.3 |
| Equity | 229.9 | 207.9 | +10.6 |
| Net debt | 16.2 | 11.1 | +45.9 |
| Expected call-offs high-volume parts production (System Parts segment) | 240.9 | 209.6 | +14.9 |
| Orders received third (investment goods) (Fineblanking Technology segment) | 57.2 | 77.2 | -25.9 |
| Order backlog third (investment goods) (Fineblanking Technology segment) | 19.1 | 36.0 | -46.9 |
| Employees | 2 239 | 2 049 | +9.3 |
| Apprentices | 68 | 75 | -9.3 |
*In the reporting year, the Swiss pension fund adapted the regulations to the current general conditions (life expectancy, interest rate expectations, etc.). Thus, there is a one-off positive effect on the group result in the amount of CHF 7.1 m.
All the information on the Feintool annual results for 2016 can be found in the 2016 Annual Report, which is available online at https://www.feintool.com/en/company/investor-relations/
Feintool in brief
Feintool is an internationally active technology and market leader in the field of fineblanking This technology is distinguished by cost-effectiveness, quality and productivity. As an innovation driver, Feintool consistently pushes the boundaries of fineblanking and develops smart solutions for its customers' ideas with two possibilities: On the one hand, our fineblanking systems and innovative tools and, on the other hand, the complete production of precise fineblanking and formed components in high volumes for demanding industrial applications. Feintool covers the entire process chain. The processes used by Feintool support the trends in the automobile industry. Thus, Feintool is a project and development partner in the field of lightweight construction, different module types, and alternative drive concepts, such as hybrid and electric. The company founded in 1959 and headquartered in Lyss, Switzerland, has its own production plants and technology centers in Europe, the United States, China and Japan so it is always near its customers. Around 2,200 employees and nearly 70 trainees work worldwide on new solutions and create key advantages for Feintool's customers.
Feintool International Holding AG Industriering 8 3250 Lyss Switzerland
Media spokesperson
Karin Labhart Telephone +41 32 387 51 57 Mobile +41 79 609 22 02 karin.labhart@feintool.com www.feintool.com
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