Result improve for Adval Tech in the first half of 2013
2013 half-yearly results for Adval Tech Group
With total income of CHF 139.4 million (1H 2012: CHF 144.9 million), the Group generated operating profit before depreciation, interest and tax (EBITDA) of CHF 11.9 million, corresponding to an increase of 20% year-on-year (1H 2012: CHF 9.9 million). The initiated cost-cutting measures had a positive impact on the results. Operating profit before interest and tax (EBIT) amounted to CHF 2.8 million (1H 2012: CHF 0.7 million), overall company result to CHF -0.9 million (1H 2012: CHF -7.7 million).
For customers in the automotive sector in particular, Adval Tech offers a very attractive package for the production of metal and plastic components, with Switzerland as a tried-and-tested production location, a low-cost plant in Hungary and production facilities in the US and China (plastic components). Thus, the Adval Tech Group has recently won several promising new orders, while at the same time raising its profile as a direct supplier to automotive manufacturers in the premium segment. In the mold-making sector, Adval Tech is expanding its range under the FOBOHA brand in order to further enhance its power, together with the Components segment, as a one-stop shop for selected areas of application. The Adval Tech Group is also striving to achieve greater market penetration for FOBOHA's cube technology.
In line with its new strategy, the Adval Tech Group is concentrating on mold making and on selected activities in the components business. In July 2013, the Group sold its business in Mexico (Omni Manufacturing Services S.A. de C.V., Querétaro) and its medical technology activities in China (Adval Tech Medical (Suzhou) Co. Ltd.) to the US company Phillips-Medisize.
Adval Tech is also involved in talks regarding the sale of a property no longer required for operations in Canton Aargau (Switzerland), and properties in Xiamen (China). Once all transactions have been completed, the Group expects a reduction in net debt. This will put Adval Tech in a better starting position from which to develop the Group.
In the Components segment (metal and plastics) the total income of CHF 105.6 million was around CHF 5 million below the year-back figure of CHF 110.8 million. In currency-adjusted terms, the decline amounts to around CHF 10 million. The segment posted EBITDA of CHF 7.0 million, maintaining the same level as the previous year (1H 2012: CHF 7.0 million). The EBITDA margin therefore improved by 0.3 percentage points to 6.6% (1H 2012: 6.3%).
The Group company Styner+Bienz FormTech AG (Switzerland) had a positive impact on the result of the Components segment.
The Molds segment posted total income for 1H 2013 of CHF 36.2 million which is CHF 1.0 million below the year-back figure of CHF 37.2 million. By contrast, EBITDA improved significantly from CHF 2.3 million in 1H 2012 to CHF 3.9 million in 1H 2013. The EBITDA margin was 10.8% (1H 2012: 6.2%)
The cost-cutting measures announced at AWM Mold Tech AG in Muri (Switzerland) in 2012 had a positive impact on the result for the first time. The performance of the Group company FOBOHA GmbH in Haslach (Germany) in terms of sales, earnings and new orders remains encouraging.
As announced at the financial statements press conference in April 2013, during the current financial year, the Adval Tech Group will be concentrating its efforts on reducing its debt and improving its operating result.
The numerous restructuring and cost-cutting measures initiated in the operating business are absolutely essential for the Group's long-term success.
With a significantly simpler Group structure, a clear focus and rigorous cost management, Board of Directors, Group Executive Management and all staff at Adval Tech Group are working tirelessly to achieve the objectives set.
In light of the general market and economic trend, the Group expects the positive performance in the first half of 2013 to be followed by a fairly difficult period in the second half of the year. The sale of the subsidiaries in Mexico and China will also lead to an annualized decline in sales by between CHF 25 million and CHF 30 million. Efforts to further reduce costs will continue. The planned launch of product operations for numerous new projects in the second half of 2013 may entail special expenses. The aim of achieving a turnaround on the level of EBIT in time for the 2013 annual financial statements is therefore an ambitious one.
Publication of 2013 Semiannual Report
The 2013 Semiannual Report will be published at the same time as this media release: http://www.advaltech.com/group/for-investors/publications/semi-annual-report.html
Results for 2013: End of March, 2014
Financial statements conference for financial analysts: April 29, 2014 in Zurich
Financial statements press conference: April 29, 2014 in Zurich
Publication of the annual report 2013: April 29, 2014
General meeting of shareholders 2014: May 22, 2014 in Bern
Except for the historical information contained herein, the statements in this media release are forward-looking statements that involve risks and uncertainties.
Adval Tech Gruppe
Adding value through innovation - that's what the name Adval Tech stands for. As a global technology and process partner, Adval Tech focuses on the complementary technologies of metal stamping and forming and plastic injection molding. In selected markets in the automotive, medical technology and consumer goods sectors, Adval Tech is a leading global supplier of volume components, subassemblies, systems, tools and special machinery. As a value-adding partner, Adval Tech covers the entire value chain: from product design and the development of volume components through design and production of the necessary molds and dies to complete manufacturing systems and the resulting production of components. Adval Tech trades on the markets under the names of AWM, FOBOHA, Omni, QSCH, Styner+Bienz and Teuscher.