Steinhausen, 17 August, 2018 - Schweiter Technologies reported a strong first half in 2018, posting a double-digit percentage increase in revenues and profit. Group revenues were up by 11% to CHF 540.3 million (+6% in local currencies), while acquisition-driven growth was close to 8%. EBITDA rose 11% to CHF 58.3 million. Despite some major increases in raw material costs, the return on sales came to 10.8%, on level with the previous year. Operating profit (EBIT) improved by 14% to CHF 44.2 million, while net profit from continuing operations rose to CHF 33.0 million. Cash holdings stood at CHF 178 million following a dividend payout of about CHF 64 million.
| Schweiter Technologies Group (in CHF m) | H1 2018 | H1 2017 | + / - | ||
| Net revenues | 540.3 | 485.6 | +11% | ||
| EBITDA | 58.3 | 52.6 | +11% | ||
| as a % of net revenues | 10.8% | 10.8% | |||
| EBIT | 44.2 | 38.9 | +14% | ||
| Net income from continuing operations | 33.0 | 30.9 | +7% | ||
| Net income from discontinued operations | - | 98.6 | |||
| Total net income | 33.0 | 129.5 |
3A Composites revenues rose by 11% to CHF 540.3 million. EBITDA increased by 10% to CHF 59.5 million, resulting in an EBITDA margin of 11.0%. EBIT came to CHF 45.4 million.
Beyond the acquisition-related growth, the main growth drivers were the Architecture business in Asia and sustained, buoyant demand for display products in Europe. The Architecture business performed well on the whole - the significant rise in sales in Asia and the USA more than offset the temporarily lower volumes in Europe and Australia in the first quarter.
Athlone Extrusions, acquired in the second half of 2017, made a significant contribution to the rise in revenues and profits.
The rest of the Display business in Europe also reported considerable increases in revenues and profitability, outperforming the market trend. Raw material price fluctuations, coupled with a corresponding temporary downturn in demand, impacted further volume growth. The US Display business built on the previous year's success, reporting revenue growth yet again.
The Architecture business in Asia benefited from several major projects in China plus an upturn in demand. Revenue growth in this region was in the double-digit range. The US Architecture business posted significant gains compared with the previous year, whereas the Architecture business in Europe and Australia fell short of expectations especially in the first quarter.
As expected, the Core Materials business got off to a moderate start in the 2018 business year. Compared with the previous year, profitability was impacted by weaker demand in the first quarter, rising raw material costs in some cases, and price pressure from global OEMs. Sales in the second quarter, however, were up again sharply in both the wind and the non-wind sectors.
Business in the Transportation sector fell short of last year's strong performance. Delivery delays for a major customer plus technical changes to two projects led to lower sales than the previous year.
Outlook The Group expects to turn in a good performance again in the second half. In the Display and Architecture business, the Group anticipates markets to remain stable but raw material prices to trend lower. The Core Materials business is expected to post firm demand. Moreover, the delayed orders in the Transportation sector are expected to be delivered in the second half.
The complete financial statements for the first half of 2018 can be found on our website www.schweiter.com
A media conference on the 2018 half-year results for analysts, media representatives, and investors will take place at 11.00 a.m. today at the Marriott Hotel, Neumühlequai 42, Zurich.
For further information please contact: Martin Klöti, CFO Tel. +41 41 757 77 00, Fax +41 41 757 70 01, martin.kloeti@schweiter.com
Please find the Media release in the PDF attached:
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