HUBER+SUHNER: Net sales in the first half year slightly below previous year – profitability suffers due to the Swiss franc appreciation
Despite the strong appreciation of the Swiss franc, net sales of HUBER+SUHNER was only reduced by 2.9 % to CHF 356.1 million. The order intake of CHF 356.3 million (-12.9 %) fell significantly compared to the same period in the previous year, but stabilised at the level of the second half year 2014. At 6.5 %, HUBER+SUHNER achieved an EBIT margin within the announced target range of 6-7.5 %. Net income fell to CHF 6.1 million due to non-cash-related, balance-sheet-based currency losses of CHF 12.8 million.
The division Fiber Optics posted an excellent result: With an increase of 20.7 %, net sales rose to a new record level. Cube Optics, which was acquired in October last year, developed very dynamically.
Key figures Continued growth of Communication market, decrease in Transportation and Industrial
|in CHF million ||H1 2015 ||H1 2014 ||Change in % |
|Group || || || |
|Order intake ||356.3 ||408.9 ||-12.9 |
|Net sales ||356.1 ||366.8 ||-2.9 |
|EBIT ||23.3 ||33.8 ||-31.3 |
|in % of net sales ||6.5 ||9.2 || |
|Net income ||6.1 ||28.3 ||-78.5 |
|in % of net sales ||1.7 ||7.7 || |
|Free operating cash flow ||12.1 ||-2.1 ||n/a |
|Radio Frequency division || || || |
|Order intake ||97.8 ||125.3 ||-21.9 |
|Net sales ||103.5 ||116.1 ||-10.8 |
|EBIT ||8.8 ||15.7 ||-43.5 |
|in % of net sales ||8.5 ||13.5 || |
|Fiber Optics division || || || |
|Order intake ||137.5 ||138.6 ||-0.8 |
|Net sales ||138.9 ||115.0 ||20.7 |
|EBIT ||14.4 ||12.4 ||15.8 |
|in % of net sales ||10.4 ||10.8 || |
|Low Frequency division || || || |
|Order intake ||121.0 ||145.0 ||-16.5 |
|Net sales ||113.7 ||135.7 ||-16.3 |
|EBIT ||3.6 ||8.4 ||-56.5 |
|in % of net sales ||3.2 ||6.2 || |
With a net sales increase of 9 %, the Communication market continued to grow pleasantly. This positive dynamic was primarily driven by the expansion of the leading position in the market for mobile phone infrastructure. HUBER+SUHNER also gained a foothold in India as part of the LTE (long-term evolution) roll-out and has already recorded initial successes in South-East Asia. Furthermore, Cube Optics, which was acquired in 2014, has had a very successful half year, achieving clearly above average growth.
The Transportation market saw a major downturn, with net sales reduced by 15 %. The main reason for this was the situation in China, where the merger of national rail manufacturers China Southern Rail (CSR) and China Northern Rail (CNR) resulted in project delays. Various delays in the railway market also impacted projects in Europe. However, the major SBB Twindexx project, that was recently awarded, will have a positive gradual effect on the railway segment.
Net sales in the Industrial market decreased by 8 %. The main factors were the difficult currency situation and a further base effect in the solar business. After a subdued situation in the previous year, the Aerospace+Defense market segment is developing positively again. The investments made in the sales channels are taking effect gradually. Outlook
Based on the average exchange rates in the first six months, HUBER+SUHNER expects net sales in the second half of the year to remain at similar levels as in the first six months of 2015. If the announced major roll-outs of rail and communication infrastructure projects in China will go ahead over the next few months, the order intake could catch momentum in the second half of the year. For the EBIT margin, HUBER+SUHNER confirms the target range of 6-7.5 % for the current financial year.
This media release and the detailed half year results 2015 are also available on the website below Company/Media.
Leiterin Corporate Communication
+41 44 952 2560
Half-year report 2015
Press Release H1 2015
Factsheet HY 2015