HALF-YEAR REPORT 2005Increased profitability despite lower sales
For the HUBER+SUHNER Group, a leading global supplier of components and systems for electrical and optical connectivity, the first six months of 2005 were characterized by solid execution in a business environment which was less buoyant than the corresponding period the year before.
The operating result (EBIT) improved by 7% to 24.3 mCHF (22.7) and the Net Income of 24.3 mCHF (19.9) reflects an increase of 22%, bringing Return On sales (ROS) to an all time high of 8.8%. This is primarily a result of an increase of Gross Profit Margin to 38.5% (36.9%) and to a limited extent, a favourable currency exchange situation.
As foreseen in the company's comments at the Analyst and Media conference in March 2005, the “miniboom” of the first half year 2004, saw no repetition this year and therefore revenue levels are 5.9% (5.1% with adjustments for portfolio changes) below the level of the corresponding period last year. The sales trend is positive however, and the Order Intake is 19.2% higher than the previous half year (second half year 2004).
In spite of higher Dividends, active cash management and an improved working capital situation provided a strong Free Cash Flow of 19 mCHF (17.6).
Net liquidity has increased with 19 mCHF to 72 mCHF and bank debt has been further
reduced and is of little significance.
Business highlights:
