After two years of falling results, the Feintool Group posted strong sales and earnings growth and positive figures in all three segments again. In the 2003-2004 financial year, the Lyss-based technology group, which operates globally in systems and component manufacturing, increased consolidated sales by 10.6% to CHF 452.2 million, EBIT by 84.7% to CHF 14.8 million and net profit to CHF 1.6 million. Free cash flow rose from CHF 3 million to CHF 22.5 million as a result of more stable global economic conditions. This good result was also much improved year-on-year due to a redoubling of market development efforts and internal structural and efficiency improvements in all segments. Restructuring of the Automation business and US operations provided a solid foundation for sustainable sales and earnings growth. The number of employees remained stable at 1872 (excluding the 95 apprentices). With order intake and backlog significantly higher, Feintool is starting the new financial year with bright prospects and a good chance of achieving further growth.
Fineblanking/Forming lifted its sales by 8.9% to CHF 268.0 million. In the presses and systems market, Feintool managed to convince customers to increase investment in its ultra-modern technology. Order intake for both the premium brand Feintool and the second brand Schmid was excellent, almost doubling over the previous year. At the Lyss Technology Center, targeted investments reduced throughput times and increased output. The European, US and Japanese component manufacturing facilities continued to grow sales year-on-year. However, a combination of operational problems and sharply increased steel prices in the USA eroded the result. In Japan, preparations for the opening of a second facility are at a very advanced stage.
Automation's sales rose 11.5% to CHF 109.4 million. The innovative modutec system was well received in the systems market. Restructuring at the Amberg site will not have a positive impact until the subsequent financial year. Thanks to targeted restructuring and a clear market identity, Afag, the assembly components company, and BalTec, the manufacturer of riveting systems, had a successful year.
Plastic/Metal Components' sales rose by a substantial 16.2% to CHF 77.3 million. This success was the result of higher call-ups under existing contracts, interesting new start-ups and internal capacity improvements at the main factory in Biberist, at the Nashville factory and at the new production facility in Lamphun, Thailand.
Sharp rise in free cash flow - solid balance sheet structures
The consolidated cash flow statement shows cash flows from operating activities totalling CHF 37.6 million. The figure was much improved, as the operating result (impacting liquidity) rose sharply by around CHF 10 million while net current assets fell by a substantial CHF 12 million against a backdrop of rising sales. At CHF 403.3 million, total assets were slightly lower year-on-year. Equity rose from CHF 108.7 million to CHF 117.5 million, and the equity ratio improved accordingly to 29.1%. The Feintool Group's net borrowing fell sharply to CHF 130.8 million.
No surprises in statutory business
After approving the Feintool Group's consolidated financial statements and the financial statements of Feintool International Holding, the meeting decided on the appropriation of the balance sheet profit. The Board of Directors' proposal that a dividend of CHF 4 per share be distributed was approved. Shareholders unanimously discharged the Board. Tribute was paid to Michael Funk and Richard Burger, who stepped down from the Board of Directors, and Dr Thomas Bähler was elected as a new member. Ernst & Young were reelected as Group Auditors and Statutory Auditors for a further year.
Group management strengthened in technology and development
An organizational change will take effect in Group Management on 1 April 2005 with the aim of strengthening the technology and development areas. The former Head of the Lyss Technology Center, Christoph Trachsler, who has been successfully managing System Parts' distribution activities in the United States for the past four years, has been appointed as the new Head of the Fineblanking Technology Division. He will also become a member of Group Management. In his new capacity as CTO (Chief Technology Officer), the current Head of the Division, Arthur Locher, will assume management responsibility for Feintool Research & Development AG.
Based in Lyss, Switzerland, Feintool is a leading technology and systems provider in fineblanking/forming and assembly/automation as well as a global supplier of metal and plastic components.
Feintool's 1870 employees - working at its own facilities and branch operations in Switzerland (where 900 staff are based), Germany, France, Italy, Great Britain, the United States, Japan and China - are committed to customer satisfaction.
Further information after the AGM from 7.00 p.m. on +41 79 204 41 13
The press release can be downloaded from the following link:
