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Pleasing 9-month result – Reconfiguration of entire production in Reconvilier in the first Quarter 2008 Dornach, 7. November 2007
In the first three quarters of 2007 Swissmetal achieved consolidated gross sales of CHF 315.5 million, which is CHF 74.9 million or 31% above the prior year. Earnings before interest and tax (EBIT) were CHF 12.7 million and have grown compared with the prior year by CHF 5.5 million or 77%. The earnings after tax (EAT) of CHF 8.2 million were CHF 5.1 million or 165% higher than the prior year figures. Swissmetal intends to consolidate all its industrial activities in Reconvilier into a single factory (currently two) by the end of the first quarter of 2008. By this means Swissmetal will achieve significant cost benefits in logistics, building and plant maintenance as well as efficiency gains in production processes. At the Reconvilier site this will create an efficient, modern, suitably-sized finishing centre for high-quality specialist products with long-term profitability. In the first three quarters of 2007 Swissmetal achieved consolidated gross sales of CHF 315.5 million. The increase in sales of CHF 74.9 million or 31% compared with the prior year can be attributed to an expanded volume of business, the first consolidation of Avins Industrial Products Corp. acquired in the US and higher metal prices. The gross margin of CHF 114.3 million was up by CHF 15.8 million or 16%.
Despite increased sales, since the start of the year it has been possible to reduce staff numbers by 84 full-time equivalents or 10% from 847 full-time equivalents as at the end of December 2006 to 763 as at the end of September 2007. This clearly shows the initial effects of the industrial repositioning of Swissmetal to turn it a profitable company. Staff costs as a proportion of gross margin fell in line with this by 10% from 63% in the prior year to 53% (after adjusting for the effects of the warehouse optimisation programme). Operating costs of CHF 31.6 million were CHF 6.4 million (25%) above the prior year, with the increase mainly being attributable to indirect materials and supplies, as well as energy. The increased energy costs are above all attributable to general rises in energy prices. The increase in indirect materials and supplies in Switzerland relates not only to an increased volume of business but also and primarily to initial costs for a large number of new tools for the new extrusion press in Dornach. In addition, materials costs in the area of maintenance have risen as a result of a higher level of contracting out.
The earnings before interest and tax (EBIT) were CHF 12.7 million, which was an increase of CHF 5.5 million or 77% compared with the prior year. The earnings after tax (EAT) of CHF 8.2 million were even CHF 5.1 million or 165% higher than the prior year figures.
On 30 September 2007 consolidated total assets comprised CHF 235.4 million, having risen by CHF 18.8 million (9%) since 31 December 2006, particularly due to increased business activity and the acquisition of Avins Industrial Products Corp.
As at the end of September 2007 the equity was CHF 138.8 million in total, which shows an increase of CHF 12.5 million since the end of December 2006.
Reconfiguration of the entire production in Reconvilier in the first quarter of 2008 |
