Half-year report 2010HUBER+SUHNER achieves sharp rise in sales and profits
All three divisions with higher business volume and profits +++ broad-based geographical growth +++ Target EBIT margin range increased to 9–12%.
The first six months of 2010 at HUBER+SUHNER were characterized by a forceful economic growth spurt. The positive momentum started during the fourth quarter of 2009; and since January 2010, however, it has risen sharply again and has remained at a high level throughout the entire first half of the year. Cumulatively, newly received orders exceeded those of the previous year by 42%, totalling CHF 443.6 million (CHF 312.2 million in the previous year). Net sales during the first six months increased by 28% to CHF 400.7 million (CHF 313.6 million in the previous year). The positive impact of the increased copper price (approx. 5%) and the negative currency effects caused by the stronger Swiss Franc (approx.
–2%), had an impact on the Group’s net sales of around 3%. Discounting these effects, the growth rate amounted to 25%.
All three HUBER+SUHNER divisions, Radio Frequency, Fiber Optics and Low Frequency, recorded doubledigit EBIT margins during the reporting period. Important factors were the very high capacity utilisation, low operational expenses, and the portfolio shift to higher margin products. This exceptionally positive broadly based development resulted in the highest operating result ever recorded during a six-month period of CHF 56.4 million (CHF 22.2 million in the previous year) and an EBIT margin of 14.1%. The impact of the increased copper price had a positive effect on the operating result of around CHF 0.7 million.
The HUBER+SUHNER Group generates large parts of its net sales in the Euro and Dollar markets and is therefore affected by currency fluctuations. During the initial months of 2010, developments of the Euro and the Dollar when compared with the Swiss Franc partially compensated for each other, with the result that only a modest currency loss of CHF 0.9 million is contained in HUBER+SUHNER’s financial result. The consolidated profits after taxes for the first half year and after special depreciation for consultancy services (CHF 4 million) in connection with the change of SAP implementation partner and taxes amounted to CHF 45.1 million (CHF 20.0 million in the previous year). This equates to a return on sales of 11.3%. The free cash flow of the HUBER+SUHNER Group (CHF 2.6 million) remained positive despite a growth-linked increase in working capital, and net liquidity increased slightly to almost CHF 181 million. The equity ratio amounted to 76% of the balance sheet total at the end of the reporting period.
