SANT'ANTONINO, Switzerland, April 2, 2004 (PRIMEZONE) -- Operating against the backdrop of continued economic malaise, the Interroll Group, a worldwide leading supplier of conveyor components and subsystems for unit load handling, succeeded in increasing its revenue, profit and margins in the 2003 financial year.
Registering a figure of CHF 222.2 million, the Interroll Group achieved a year-on-year increase in sales of 10% in 2003. This was accomplished against the backdrop of the weak US dollar, Singapore dollar, and British pound. Expressed as total output (i.e. net sales +/- changes in work in progress and finished goods + own goods capitalised) Interroll generated CHF 214.8 million in the year under review, compared with CHF 203.7 million in the 2002 financial year.
As in the preceding financial year, Interroll displayed a solid and stable earnings performance in 2003, achieving increases in profits and margins.
Further significant increase in operating profit and margins
In the year under review, earnings before interest, taxes, depreciation and amortization (EBITDA) were propelled upwards by CHF 9.3 million, taking the overall figure to CHF 33.6 million. This represents a year-on-year increase of 38.5%. Interroll's EBITDA Margin grew from 11.9% to 15.6% computed on the basis of total output. This corresponds to a growth rate of 31.1% compared with 2002. EBITDA benefited from a gain of CHF 7.4 million on disposal of the Bulk Handling unit at the end of June 2003. Excluding this non-recurring effect, Interroll's operating profit margin increased to 12.2%, an admirable performance. Earnings before interest and taxes (EBIT) recorded an increase of CHF 1.4 million compared with the 2002 financial year. Thus, EBIT rose to 6% of total output.
Marked improvement in net profit
Year on year, net profit increased by CHF 1.4 million to CHF 7.1 million in the 2003 financial year. Growth within this area, which amounts to 25%, is attributable to several factors: enhanced productivity at all plants, revenue growth, greatly improved profitability within the Subsystems segment, and continuous monitoring of fixed costs. The sale of our Bulk Handling unit had no extraordinary effect on net profit.
Cash flow from operating activities remained stable in the year under review, registering a figure of CHF 22.3 million. This corresponds to 10.4% of total output. The equity ratio increased by a third from 32.9% to 44% year-on-year.
Revenue by segment
Interroll's total revenue of CHF 222.2 million for the year under review was comprised of CHF 125.7 million generated by the Components segment (Interroll Drives & Rollers and Interroll Bulk Handling in the first six months) and CHF 96.5 million generated by the Subsystems segment (Interroll Dynamic Storage and Interroll Automation). Within the Components segment, EBITDA amounted to CHF 26.6 million in the 2003 financial year, i.e. 21.2 % of total output (CHF 19.2 million, or 15.2 % of total output, after deduction of gain on disposal of Bulk Handling. This represents an increase of CHF 3.8 million compared with the previous year. The Subsystems segment achieved an EBITDA figure of CHF 7.0 million, i.e. 7.3% of total output, compared with CHF 1.5 million posted in the 2002 financial year. This marked improvement by CHF 5.5 million goes back to two main factors: considerably increased margins in the Dynamic Storage business unit and the acquisition of the Axmann companies. The Bulk Handling unit sold to Italian-based Rulli Rulmeca S.p.A. in Bergamo in mid-2003 was deconsolidated at the end of June 2003.
Regional overview
In Europe, sales revenue amounted to CHF 159.2 million for the year under review, in contrast to a figure of CHF 135.9 million recorded in 2002. Despite operating within an extremely challenging market environment, Interroll succeeded in further enhancing its position in Europe. Our new subsidiaries in Poland and the Czech Republic, coupled with the roll-out of new products, contributed to this solid performance.
Our expectations were not met fully in the North American market. In this region, sales revenue amounted to CHF 52.9 million, compared with CHF 56.7 million achieved in 2002. However, calculated in local currency, net sales remained stable year on year. Interroll's US-based subsidiaries were adversely affected by a sharp decline in sales experienced by several customers operating within the area of conveyor technology (particularly systems integrators). This situation was compounded by the weak US dollar.
Registering net sales of CHF 10.1 million, Asia remained stable year on year. In local currency, net sales rose by 7%. This was particularly satisfying, considering the SARS epidemic. Our fledgling Interroll subsidiary in China strengthened its presence within the domestic market, having secured a major project in the area of dynamic storage in 2003.
Par value repayment
The Board of Directors will be putting forward a proposal to the General Meeting of Shareholders on May 7, 2004, covering the par value repayment of CHF 2.50 per registered share.
Outlook
Our streamlined business portfolio centered entirely around unit load handling, complemented by a more balanced risk scenario and an all-embracing range of innovative products, provides a solid foundation for sustained growth within the competitive arena and enhanced earnings performance. We are of the opinion that the economic environment will remain strained in 2004. Supported by a clearly defined strategy, an outstanding product offering, a lean corporate structure, and an ongoing programme for optimized productivity, we believe that Interroll will reap above-average rewards from an upturn in the economy.
For any questions, please feel free to contact Interroll on April 2, 2004 between 14:00 and 15:00 hrs: Paul Zumbuhl, CEO Tel. +41 91 850 25 24
Lorenz Kohler, Head of Corporate Communications Tel. +41 91 850 25 21
www.interroll.com/ir (Investor Relations) investor.relations@interroll.com
Agenda 2004
Annual General Meeting of Interroll Holding AG: Friday, May 7, 2004, Interroll Holding AG, CH-6592 Sant'Antonino/Switzerland. Half-year results: August 12, 2004
Profile of the Interroll Group
Interroll is one of the world's leading suppliers of components and subsystems for materials handling, conveyor technology, and automation. Under the umbrella of a strategic holding company located in Sant'Antonino, Switzerland, Interroll's three global business units are responsible for managing the Group's international activities, based on an incisive strategy in terms of market and product positioning. Within the Components segment, the business unit "Drives & Rollers" mainly focuses on assisting regional engineering companies and original equipment manufacturers. The business units "Automation" and "Dynamic Storage", which operate in the Subsystems segment, are responsible for system integrators, multinational corporations and end-users. Listed on Switzerland's SWX stock exchange, Interroll employs roughly 1,050 people in 25 companies worldwide.
Key Figures of the Interroll Group
Interroll Group consolidated 2003 2002 2001
Net Sales Mio. CHF 222.2 202.8 224.3
Change % 9.6 -9.6 -2.2
EBITDA Mio. CHF 33.6 24.3 22.0
Change % 38.5 10.1 3.3
in % of Net Sales % 15.1 12.0 9.8
EBITA Mio. CHF 19.8 12.7 12.3
Change % 55.9 3.0 -7.5
in % of Net Sales % 8.9 6.3 5.5
EBIT Mio. CHF 13.0 11.6 11.2
Change % 12.0 3.7 -15.0
in % of Net Sales % 5.8 5.7 5.0
Operating Cash Flow Mio. CHF 22.3 26.4 15.2
Change % -15.5 74.2 -29.5
in % of Net Sales % 10.0 13.0 6.8
Free Cash Flow Mio. CHF 27.4 0.4 7.4
in % of Net Sales % 12.3 0.2 3.3
Net Profit Mio. CHF 7.1 5.7 5.2
Change % 25.0 10.7 126.0
in % of Net Sales % 3.2 2.8 2.3
in % average shareholders'
equity (ROE) % 10.7 8.9 7.8
Number of Employees (average) 1050 1054 1105
Net Sales per employee TCHF 211.6 192.0 203.0
Investements in tangible and
intangible assets Mio. CHF 5.8 6.4 9.8
Total Assets Mio. CHF 159.1 191.3 173.4
Shareholders' Equity Mio. CHF 69.9 63.0 64.9
in % of Total Assets % 44.0 32.9 37.4
Indebtedness Factor 1.56 2.20 3.63
Dividend per share CHF - 2.50 2.50
Reduction of nominal share
value per share CHF 2.50* - -
* Proposal of the Board of Directors for the Annual General Meeting
of May 7th, 2004.