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Operative and financial progress Dornach, 12 August 2004
Half-year report of Swissmetal as at 30th June 2004 A few weeks after the successfully completed refinancing, Swissmetal can now submit a half-year report that shows considerable operative and financial progress compared to the same period of last year. In the first semester of 2004, the gross added value sales increased by 8% to CHF 60.1 million, while the operating earnings improved from CHF 1.9 million to CHF 6.9 million. Influenced by once-only effects, earnings after taxes increased to CHF 12.3 million (prior year CHF -0.8 million). For the complete year 2004, Swissmetal expects a consolidation of the company progress.Clear increases in sales In the first half-year of 2004, Swissmetal has been able to increase the gross added value sales by CHF 4.6 million, to CHF 60.1 million. As an important indicator in the industry, the gross added value sales is calculated from the gross sales minus the cost of metal at standard metal prices. As a result of the relatively high metal prices, gross sales (+19%) increased more strongly than the gross added value sales (+8%).
The increase in sales was due, in particular, to increased sales in Switzerland, France, the USA and the Far East. The Electronics and Turning parts segments again showed strong growth in the first half-year, while Swissmetal also registered higher sales in the Electrical Engineering and Industry & Construction segments. Due to the large increase in metal prices, on the other hand, the Consumer Goods segment experienced falling sales.
Back into the black Earnings after taxes increased to CHF 12.3 million in the first half-year, with once-only effects to the extent of CHF 8.2 million(dissolution of provisions and book profits) having a positive effect. The turnaround measures and the improved economic situation also contributed to the better result. The favourable effects of the operative turnaround introduced in 2003 can be seen in particular in the ratio of personnel expenses to gross margin, which improved from 63% to 58%. In the second quarter of 2004, the balance sum of Swissmetal increased to CHF 153.7 million (+6% compared to the end of 2003), above all due to a growth-related increased requirement for working capital. The operating cash flow amounted to CHF 2.5 million (prior year: CHF 3.9 million). It was strongly influenced by a purchase of debt in connection with guarantees towards a former German subsidiary company (CHF 5.6 million) and by further Cash Outs (CHF 3.4 million) due to restructuring and refinancing. Overall, Swissmetal achieved a slightly negative cash flow of CHF -0.1 million in the first half-year of 2004 (prior year: 0.7 million).
Outlook The growth scenario has also been confirmed in the second quarter of 2004, which - in combination with the turnaround measures - has had an overall positive effect for Swissmetal. In the first semester of 2004, the incoming orders were 33% higher than the comparable period of the prior year, at CHF 68.1 million. Swissmetal will also continue its course of a cost and cash optimized management in the second half year, in order to become more profitable in the medium to long-term. |
