Annual Results 2009
(Thomson Reuters ONE) -
Conzzeta AG / Annual Results 2009 processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement.
Conzzeta faces up to a difficult environment
Zurich, March 30, 2010. - The Conzzeta Group was strongly affected by the
economic crisis in the 2009 business year and adapted its operations to the
weakened market environment. Consolidated net revenues reached CHF 955.2
million, a decline of 35.1 % over the previous year. The high degree of
self-financing and diversification of the Group's businesses proved their worth.
Above all the Sporting Goods (Mammut Sports Group) and Real Estate business
units contributed to stabilizing the Group. The consolidated operating result
showed a small loss of CHF 1.4 million. That includes non-recurring costs ofCHF
22.3 million for capacity adjustments. Thanks to an extraordinary profit from
the divestment of properties not essential to business operations, the Group
result was just on the positive side at CHF 3.3 million. The Group's liquidity
was secured. The Board of Directors is proposing to the General Meeting of
Shareholders on April 28, 2010 an adjusted dividend of CHF 30.00 per bearer
share and CHF 6.00 per registered share, to take account of the changed economic
situation.
The performance of the Conzzeta Group was strongly affected by the economic
crisis in the 2009 business year. Consolidated net revenues declined by 35.1 %
to CHF 955.2 million (previous year: CHF 1 472.5 million). Adjusted for negative
currency translation effects of 2.4 %, as well as minor effects due to changes
in the scope of consolidation, the fall in net revenues was 32.6 %. With the
exception of the Sporting Goods business unit (Mammut Sports Group), which
achieved a gratifying increase in revenues of 11.8 %, all other businesses
reported declining revenues. Despite carrying over well-filled order books from
2008, the business units operating in the machinery and systems engineering
sector were extremely hard hit by the abrupt downturn in the global economy and
had to introduce short-time working as early as the spring of 2009. In view of
the lower volume of orders expected in the long term, the Sheet Metal Processing
Systems, Glass Processing Systems, Automation Systems and Foam Materials
business units adjusted their capacities to the weakened market environment. The
number of employees in the Group fell to 3 225 (previous year: 3 718), down by
13.3 % compared with the end of 2008.The operating result contains non-recurring
costs of CHF 22.3 million for capacity adjustments to take account of the
changed market environment. The consolidated operating result (EBIT) showed a
small loss of CHF 1.4 million (previous year: CHF +97.8 million), primarily due
to the steep fall in orders in machinery and systems engineering.
The Group result was just on the positive side at CHF 3.3 million (previous
year: CHF 78.8 million). It contained an extraordinary profit of CHF 11.0
million from the divestment of properties not essential to business operations.
The Conzzeta Group was able to secure liquidity in 2009. The Group achieved a
cash flow from operating and investment activities (free cash flow) of CHF
141.8 million (previous year: CHF -30.8 million). Consistent management of net
working capital made a significant contribution to the decrease in accounts
receivable and inventories. The investments in property, plant and equipment and
intangible assets of CHF 28.0 million (previous year: CHF 56.0 million) were
adjusted in line with economic developments.
With an equity ratio of 78.0 %, the Group remains on a very solid financial
footing. The cautious financing policy enabled Conzzeta to maintain its
geographical market coverage, strengthen its presence in growth markets and
continue to invest in innovation projects in all business units. That made a
significant contribution to securing the future market position.
Business units
TheSheet Metal Processing Systems business unit (Bystronic) had to cope with a
52.2 % slump in sales, which came in at CHF 356.1 million (previous year: CHF
745.1 million). The slump affected the laser and waterjet cutting systems as
well as pressbrakes. Demand fell steeply in markets such as Scandinavia, as well
as Southern and Eastern Europe. The fall-off was less marked in Central Europe
and Great Britain. In Asia, China showed an upward trend, returning to growth.
Despite the difficult business environment, Bystronic maintained, and in some
cases strengthened, its market presence. The sales and service network, with
dedicated companies in over 20 countries, was further developed through the
opening of a subsidiary in Russia. On the innovation front, Bystronic introduced
some impressive new products - under the motto "simply economical" - in the
areas of waterjet cutting, bending and automation.
TheGlass Processing Systems business unit (Bystronic glass) generated sales of
CHF 145.6 million (previous year: CHF 244.6 million) in the reporting year,
which represents a decline of 40.5 %. The global recession brought a slump in
demand for glass and glass-processing machinery. Bystronic glass had to deal
with falling demand in all product groups and market regions. Worst-affected was
the machinery for automotive applications. The tense market situation increased
the competitive pressure on all suppliers. However, the reporting year also
produced some positive results. In the Middle East, Bystronic glass won further
major orders for turnkey manufacturing installations. The first automated
production line for bonded PVC windows was launched in the USA, offering window
manufacturers significant cost and quality advantages.
TheAutomation Systems business unit (ixmation) closed the reporting year with
sales of CHF 56.1 million (previous year: CHF 73.6 million). Almost half of the
23.7 % decline in sales was due to the divestment of the business with
production automation systems in Pieterlen (Switzerland), which was sold in a
management buyout. ixmation is concentrating its activities in Switzerland on
sales and servicing of systems for automation of assembly and testing, based at
a new site in Burgdorf. In a demanding market environment, the ixmation
companies in the USA and Asia succeeded in gaining high-profile new customers.
The business in Malaysia received a welcome boost from major contracts for the
electronics industry.
TheFoam Materials business unit (FoamPartner) generated sales of CHF 116.8
million in 2009, a decline of 20.1 % compared with the previous year (CHF 146.3
million). Sales volumes were down in the technical foams (industry, packaging
and automotive) and comfort (mattress and pillow cores) business segments, with
the former more strongly affected by the slowdown in demand. FoamPartner
achieved an important intermediate goal in foam materials development. Initial
customer tests with the new sealant foam RegiSealAqua were a great success. In
the comfort segment, the novel AventO2 mattress core material, which is enriched
with lavender, was successfully launched. The plant in Changzhou (China), which
was opened in 2008, succeeded in significantly increasing output in the
reporting year. As a result, local production of important foam types for the
Asian growth market is possible.
TheSporting Goods business unit (Mammut Sports Group) increased sales in the
reporting year by 11.8 % to CHF 215.3 million (previous year: CHF 192.6
million). In the clothing segment, the snow and alpine/mountain collections were
in particular demand; while in technical products, the avalanche rescue device
Barryvox and the headlamp made good progress. There was vigorous sales growth in
the markets of Germany, Switzerland, Italy and Great Britain, as well as in
important new markets such as Japan and Korea, where the business unit invested
in building up the sales network. Mammut also succeeded in growing in the USA,
against the market trend. The development of sales in Eastern Europe failed to
meet expectations, above all because of the adverse exchange rate situation.
Further Mammut Stores and numerous shops-in-shop were opened in 2009 in
collaboration with specialist retailers.
TheGraphic Coatings business unit (Schmid Rhyner) reported sales of CHF 43.2
million (previous year: CHF 47.5 million), representing a fall of 9.2 %. As a
result of the economic crisis, demand in the printing industry (commercial and
packaging printing) declined. Despite the increase in competitive pressure,
Schmid Rhyner succeeded in maintaining its market position, and increasing both
market share and sales in some markets. The sales company in the USA,
established in 2008, also achieved advances in the market. In the reporting
year, a number of new product lines were introduced. For packaging printing, a
special line was developed for food, beverages and tobacco packaging.
TheReal Estate business unit (Plazza Immobilien) generated revenues of CHF 21.4
million (previous year: CHF 22,0 million) in 2009. The decrease of 2.5 % is
largely due to lower rental incomes, following the sale of a property. In the
reporting year, two properties not essential to business operations were sold,
bringing an extraordinary result of CHF 11.0 million. For a former industrial
site in Wallisellen, Plazza Immobilien launched a planning project for a
high-end development with a strong residential element. A modern development
with around 190 apartments is planned.
Trends and outlook
It is still difficult to make predictions about business developments in 2010.
There are increasing signs of a slow recovery in the world economy, raising
hopes of an improvement in the market environment of the Conzzeta Group
businesses. In the capital goods sector, there are emerging signs of a slow
upturn, but the pick-up in incoming orders is still uneven. Furthermore, the
machinery and systems engineering businesses are beginning the 2010 business
year with their order books at a much lower level than in the previous year. It
can be expected that 2010 will be another challenging year. As a result, the
machinery and systems engineering sector will not yet return to its previous
position of strength. In the consumer goods sector, we may have to live with the
fact that it will no longer be possible to achieve the growth rates seen in
previous years. The Group's goal for 2010 is to get back into the profit zone.
The sound financial structure, as well as the capacity adjustments made in 2009
in response to the changing market situation, will contribute to achieving that
goal. In the current year, the Group will focus on positioning the business
units to take full advantage of the next upswing, with the goal of emerging from
the crisis stronger.
The full version of the Annual Report is available atwww.conzzeta.ch
For further information, please contact:
Carlo Menotti, Head of Corporate Services
Phone +41 44 468 24 84
media(at)conzzeta.ch
The Conzzeta Group is an internationally active Swiss holding company, with
approx. 3 300 employees worldwide. Its activities are in the areas of machinery
and systems engineering, foam materials, sporting goods, graphic coatings and
real estate. Conzzeta's shares are listed on the SIX Swiss Exchange (SWX:CZH).
Changes in interim reporting
As a result of a change in the listing regulations of the SIX Swiss Exchange,
Conzzeta will publish an interim report as at June 30, from the 2010 business
year onwards. Interim reporting in four-month periods will be discontinued.
The media release including consolidated income statement can be downloaded from
the following link:
[HUG#1398656]
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Conzzeta AG
Giesshübelstrasse 45 Zürich Switzerland
WKN: 265798;ISIN: CH0002657986;
Media release: http://hugin.info/100413/R/1398656/354355.pdf
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Datum: 30.03.2010 - 00:30 Uhr
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