Half-Year Report 2004HUBER+SUHNER: Strong Growth and Outstanding Result
HUBER+SUHNER have returned to the path of growth in the first six months of 2004. The Group achieved an extremely positive result due to the restructuring effects, which are now showing their full impact, and on appreciable growth in sales. The operating result (EBIT) improved to CHF 22.7 million (previous year 3.8), and consolidated profits rose from CHF 1.6 million to 19.9 million. Bookings grew by 19 percent to CHF 317.6 million (previous year 267.4), and net turnover rose 9 percent to CHF 292.6 million (previous year 267.9). When taking into account the portfolio changes (–14.7 million) the increase in turnover amounted to 16 percent. This upswing based on growth is in all three main markets of “Communications,” “Transport,” and “Industry” and in all three geographical regions. Gross margin increased from 33 percent to 37 percent, and the balance sheet situation has further strengthened. Despite strong growth, a positive free cash flow was achieved; bank liabilities have been further reduced, while net liquid assets have increased. Equity rose by 8 percent to CHF 277.1 million (previous year 257.1), which now accounts for 61 percent of the balance sheet total (previous year 56 percent). HUBER+SUHNER expect this positive turnover and earnings development to continue and forecast also a good result for the end of the year.
HUBER+SUHNER
GROUP
Unaudited figures in accordance with SWISS GAAP FER
|
Financial Highlights |
1st half |
1st half |
|
||||||||||||||||
| Bookings |
317.6 |
267.4 |
19% |
||||||||||||||||
| Mobile Communications + Electronics |
167.5 |
121.2 |
38% |
||||||||||||||||
| Wired Solutions + Networks |
150.1 |
146.2 |
3% |
||||||||||||||||
| Net Sales |
292.6 |
267.9 |
9% |
||||||||||||||||
| Mobile Communications + Electronics |
153.4 |
123.1 |
25% |
||||||||||||||||
| Wired Solutions + Networks |
139.2 |
144.8 |
-4% |
||||||||||||||||
| EBIT (operating profit) before restructuring costs |
22.7 |
5.5 |
313% |
||||||||||||||||
| EBIT after restructuring costs |
22.7 |
3.8 |
497% |
||||||||||||||||
| Net income |
19.9 |
1.6 |
|||||||||||||||||
| EBITDA |
36.3 |
22.0 |
65% |
||||||||||||||||
| Empoloyees at the end of period |
2558 |
2564 |
-0.2% |
||||||||||||||||
| Free Cash Flow |
17.6 |
13.6 |
29% |
||||||||||||||||
The positive trend that was already emerging towards the end of last year has been confirmed and strengthened in the first six months of 2004. HUBER+SUHNER have continued to gain impetus. Their two business Sectors (Mobile Communications + Electronics plus Wired Solutions + Networks) increased turnover with their ongoing businesses and improved earnings. The Mobile Communications + Electronics Sector is growing at an above-average rate. The sharp rise in bookings at the start of the year required a high degree of operational flexibility, but was handled successfully. Along with the increase in sales revenue, profitability also improved appreciably.
As a result of the better economic situation and the associated rise in confidence, customers have again started to place orders with a somewhat longer-term planning horizon. In conjunction with often very low inventory levels, this situation triggered a sharp rise in demand, especially in the first quarter.
This fast growth, paired with the current low cost basis, generated an encouraging consolidated profit with a return on sales of 6.8 percent – a level never achieved before. HUBER+SUHNER expect this situation to normalise again as costs start to rise slightly as a result of growth.
HUBER+SUHNER are on track to achieve or even exceed the targets reported at the last media and analyst conference on 17 March 2004.
