half year report 2006As we look back on an outstanding first half of 2006, we note that growing target markets, successful new products, full-capacity production and low operating costs all contributed to an exceptionally high increase in sales and earnings in the first six months of the 2006 business year.
Order intake rose 26.2% over the same period last year, from CHF 287.8 to CHF 363.3 million. At the same time, net sales grew 16.8%, from CHF 275.3 to CHF 321.7 million. Such growth and considerable advances in the Fiber Optic + Cable Technology business sector produced record earnings, with a gross margin of 40.3% (previous year, 38%) and an operating profit (EBIT) 87.9% higher at CHF 46.1 million (previous year, CHF 24.6 million). Our 14.3% EBIT margin was in the two-digit region for the first time and well above expectations. CHF 6 million one-time earnings from the sale of our Sucoflex business unit to Sika, and dissolution of unneeded guarantee reserves also contributed to our operating profit. In spite of a financial result much lower than that of the same period in the previous year, net income was up a proud 74.2%, from CHF 22.9 to CHF 39.9 million, resulting in a return on sales (ROS) of 12.4%.
For the second half of the year we anticipate a continuation of the positive business environment even though experience has taught us that sales will be somewhat lower due to the usual seasonal fluctuations. As of today, for 2006 as a whole, we project sales in excess of CHF 600 million and an EBIT margin in the lower two-digit region. Even without currency gains similar to the level of the previous year’s, net income should grow markedly to another record level.
