Oberer Deutweg 4
8400 Winterthur, ch
+41 52 234 41 41
The Winterthur Technology Group shows significant improvements in sales and profit Increased demand for innovative grinding technology - attractive
Winterthur Technology Group, a leading European provider of complex abrasive technology, runs operations in Switzerland, Austria and Sweden. In the financial year 2005 sales have increased from EUR 72.4 million (CHF 111.8 million) to EUR 78.4 million (CHF 121.4 million). Compared to 2004 this corresponds to an increase of 8.3 % and 8.7 % in local currencies. This improvement is based on organic growth in Europe, specifically generated by the new subsidiaries in the new EC countries and in Russia. Even more significant increases have been achieved in Asia. This positive trend is also reflected in the order backlog at the beginning of 2006. Compared to 2005 the order-book has improved by 2 digit figures.
The successful sales development is clearly shown in earnings before interest, taxes, depreciation and amortisation (EBITDA) with an increase of 10.5 % from EUR 12.4 million in 2004 to EUR 13.7 million. This corresponds to an EBITDA margin of 17.5 % which lies at the upper end of the management’s forecast for 2005. The development of earnings before interest and taxes (EBIT) shows an impressive EUR 10.4 million, corresponding to an increase of 37.8 % compared to the previous year (EUR 7.6 million). This includes EUR 1.7 million of goodwill amortisation that is no longer allowed to be deducted under IFRS due to no impairment. This preliminary information for 2005 deserves even more appreciation as it has to be considered in view of an environment where raw materials and energy cost have sharply risen and the Swedish Crown having shown a clear weakness against the Euro.
The management expects this positive trend to continue throughout 2006. This is based on further improving the existing market positions and on over-proportional organic improvements in the fast growing markets, yielding an average growth of 6 % to 8 %. Customer oriented, innovative products and services will support an up-trend during 2006. A new glass ceramic high-tech material that will be released in the near future looks especially promising.
The audited annual report will be commented on at the occasion of the media conference on 10 April 2006.
Profile Winterthur Technology Group (WTG), a leading European provider of complex abrasive technologies, is headquartered in Zug and has operations in Switzerland, Austria and Sweden. Winterthur Technology AG is a holding company under Swiss law with a listing on the SWX Swiss Exchange. It has slightly more than 600 employees, and in 2005 achieved sales of approximately EUR 78 million in 2005. Working closely with clients, the company develops and produces complex high-margin, high-tech abrasive technology consumables, primarily bonded abrasive tools used in the automotive, gas turbine and steel industries. Production takes place in Austria (Villach) and Sweden (Västervik). In Switzerland (Winterthur) there is a finishing plant and a logistics center. The Group’s main brands are Winterthur, Rappold and SlipNaxos. WTG’s products - vitrified grinding wheels, resin bonded grinding wheels, cut-off wheels and diamond and CBN grinding tools - are sold in all the relevant European markets as well as in North and South America, and Asia.
Winterthur Technology Ltd / Winterthur Technologie AG
in EURm 2004 2005
Net Sales / Nettoerlös 72.4 78.4
% Growth / Steigerung 6.6% 8.3%
EBITDA 12.4 13.7
% Margin / Marge 17.2% 17.5%
EBIT 7.6 10.4
% Margin / Marge 10.5% 13.3%
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