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Gurit Reports Significantly Improved Profitability and Stable Net Sales in 2016
Net sales for FY 2016 amount to CHF 352 million, a currency-adjusted increase of 0.3% versus 2015
Operating profit margin at 10.5% of net sales, best operating profit margin in more than 15 years
Net profit increases to CHF 26.0 million, profitability target substantiated for the second consecutive year
Proposed distribution of CHF 20.00 per bearer share
Gurit (SIX Swiss Exchange: GUR) today reported stable net sales of CHF 352 million for the full year 2016 despite a challenging economic environment. The Company successfully managed to bear up against a decline of newly installed wind capacity of -14% globally and lower project realizations in the marine and industrial sectors in 2016. Against these challenges, operating profit rose to CHF 36.8 million (10.5% of net sales) and net profit amounted to CHF 26.0 million for the full year 2016.
Gurit`s Composite Materials Business achieved mixed results in its various market areas. In Wind, it suffered from the decline in newly installed wind capacity in China of 24% compared to the 2015 all-time high. Net sales to the wind energy market declined by 4.1% (currency-adjusted: -2.9%) to CHF 149.0 million. Material supply to other material markets slightly declined by 1.6 % in reported Swiss francs (currency-adjusted: 0.0 %), mainly due to lower sales to the marine market which could not be fully offset by the positive double- digit growth in the aerospace business. In total, net sales in the Composite Materials Business decreased by 3.0% (currency-adjusted: ‑1.6%) year-on-year from CHF 274.0 million in 2015 to CHF 265.6 million in 2016.
Gurit`s Composite Components Business showed the anticipated drop in sales and declined by 34.3% (currency-adjusted: -27.9%) from CHF 26.4 million in 2015 to CHF 17.3 million in 2016. The decrease results from the orderly end of contracts over the course of 2015.
Gurit`s Tooling Business was able to report yet another record year. Less prone to the cyclicality of newly installed wind capacity and benefitting from the continued pre-investment in longer wind blade moulds, net sales increased by 16.9% (currency-adjusted: 21.8%) to CHF 69.0 million in 2016 compared to net sales of CHF 59.0 million in 2015.
Profitability Level Substantiated
Despite the challenging market environment, Gurit achieved an operating profit of CHF 36.8 million in 2016. The operating profit margin improved from 9.2% in 2015 to 10.5% in 2016, substantiating the Company`s profitability target for the seconds consecutive year. This development is mainly attributable to a favorable product mix, the ongoing programs to continuously improve operational excellence as well as a favorable raw material and foreign exchange rate situation.
Gurit reports a net profit of CHF 26.0 million in 2016 (2015: CHF 22.6 million). This equals to earnings per listed bearer share of CHF 55.64 (2015: CHF 48.24).
Continued Positive Cash Flow and Strong Balance Sheet
Gurit generated a positive cash flow from operating activities of CHF 37.9 million and closed the year with a net cash position of CHF 37.2 million (2015: CHF 20.4 million) and an equity ratio of 76.6 % (2015: 71.4 %). Following the large capital investment program of 2015, capital expenditures were lower in 2016 and amounted to CHF 10.5 million (2015: CHF 16.7 million).
Overall, Gurit currently estimates that the Company will continue to grow on a low single-digit level in 2017. In terms of profitability, the Company strive to further substantiate its mid-term target of 8 –10% operating profit margin.
Annual General Meeting of Shareholders on April 12, 2017
The Board of Directors will propose to the Annual General Meeting of Shareholders (AGM), scheduled for April 12, 2017, to distribute a total of CHF 9.4 million corresponding to an increased amount of CHF 20.00 per listed bearer share out of the reserves from former capital contributions. The full invitation to the AGM including all motions proposed by the Board of Directors will be available for Download at http://www.gurit.com/Investors/AGM from March 14, 2017, onwards.
Online publication of Annual Report 2016, Media/Analyst conference and international Webcast today, Wednesday, March 8, 2017
Gurit has published its Annual Report 2016 online at http://www.gurit.com/Investors/Reports. Management will discuss the results today in further detail at a joint media and analyst conference in Zurich at 08:30 a.m. CET. This year, the conference will take place at a different venue: The Zurich Marriott Hotel, Neumuehlequai 42, CH-8006 Zurich. As always, the presentations will be held in English and will also be accessible as webcast at http://www.gurit.com/Investors/Webcasts where an archived version will later be available for download.
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