Luzerner Kantonalbank AG
Tests zur Entfernung von Arsen mithilfe der keramischen ItN-Flachmembran mit herausragenden ErgebnissenItN Nanovation AG 20.08.2018 18:30
Stadtname / PLZ
Mi, 18.07.2018 07:00
Announcement according to SIX adhoc publication article 53 KR
Georg Fischer AG: Positive momentum continued in the first half-year of 2018
Schaffhausen (pta006/18.07.2018/07:00) -
- Sales up 20% to CHF 2'396 million, organically 12%
Amid positive economic developments worldwide, sales went up 20% during the first semester of 2018 to CHF 2'396 million compared to the same period of 2017. All three divisions did contribute to the increase. Free of acquisitions and currency effects organic growth stood at 12%. Following another semester of operating margin expansion, the operating result grew 24% to CHF 208 million. All three divisions increased their operating result (EBIT), most significantly GF Piping Systems and GF Machining Solutions. The operating margin or return on sales (ROS) improved from 8.4% to 8.7% and the return on invested capital (ROIC) went from 19.2% to 21.2%. Net profit after minorities increased by 27% to CHF 150 million. Seasonality-driven free cash flow before acquisitions stood at CHF -55 million, compared to CHF -30 million during the same period of 2017. For the whole year, we continue to expect a figure in line with our published CHF 150-200 million goal. Earnings per share reached CHF 37 against CHF 29 in the first semester 2017.
The portfolio of GF Automotive has been enriched with the acquisition of Precicast Industrial Holding SA (Switzerland), a leading precision casting specialist in the promising aerospace and gas turbine field. As a consequence, the division has been renamed GF Casting Solutions. The long-term financing of the Corporation has also been further strengthened and strategic flexibility increased with the emission of a 10-year, CHF 200 million straight bond with a 1.05% coupon.
All three divisions with growth rates well above target:
GF Casting Solutions saw its sales grow by almost 28% to CHF 924 million, supported by a stronger Euro and the consolidation effect of the acquisitions successfully executed in 2017 and early 2018. Organic growth stood at a high 11% despite slowing growth rates in the car sector worldwide. Taking into account raw material-related price increases, the actual volume increase amounted to 9% as new light metal orders for SUVs and electric cars did come on stream and truck-related demand was quite sustained.
The division increased its operating result by 13% from CHF 53 million to CHF 60 million, but its operating margin slightly retracted from 7.3% to 6.5% as raw material price increases actually reduced profitability and the costs relating to the ramp-up of the new light metal plant in the US went up in preparation for the production start at mid-year. The light metal foundry recently purchased in Romania had a good start of the year and so had the newly acquired Precicast in Switzerland. Both companies were accretive to earnings.
GF Machining Solutions recorded a successful semester with an order intake increase of 8% on the back of strong orders received in Asia, but also in Europe. Sales grew 18% to CHF 525 million, with an organic growth of 14%. The division lifted up its operating result by 50%, from CHF 28 million to CHF 42 million, for an operating margin of 8%, against 6.3% in the first half of 2017. The new products launched in 2017 did contribute the most to these operational improvements. The connectivity software company Symmedia GmbH (Germany), acquired in September 2017, has been successfully integrated and contributes to the acceleration of our digitalization drive.
Strategy 2020 well on track at its mid-term:
The shift to higher margin businesses is proceeding apace, with emphasis on digital valves and sensors at GF Piping Systems, magnesium/aluminum structure components at GF Casting Solutions and machine-tools for aerospace and medical applications at GF Machining Solutions. Finally, the strong focus on customer-driven innovation is being pursued in order to anchor this important skill set into our corporate culture.