Winterthur Technology Group (WTG) posts solid annual results;
a dividend will be proposed.
Zug, 18 March 2009
WTG boosted net sales by 39% to EUR 219 million (CHF 347 million) in FY 2008 – which was attributable to acquisition- as well as organic-based growth – while increasing the EBIT margin to 13.5% of sales and substantially reducing debt thanks to robust cash flow.
Winterthur Technology Group (WTG) posted net sales amounting to EUR 219 million (CHF 347 million) in FY 2008, corresponding to a significant surge of 39% compared with the previous year’s figure of EUR 147 million (CHF 258 million). The increase was essentially achieved due to the first-time, full consolidation of the Wendt Group, for which only one half-year period was taken into account in 2007. Organic growth amounted to roughly 3%, assuming unchanged foreign-exchange rates. Calculated in euros, organic growth was 1.8%. According to the management’s assessment, the abrasives market was already declining in 2008. The Group therefore succeeded in gaining new market share. The strongest growth was achieved in the area of Wendt machine tools, amounting to 5.5% calculated in euros. New machine tools accounted for a 14% share of Group sales.
Despite higher commodity prices, the Group boosted gross profit once again compared with the previous year’s mark, it amounted to 40.9% of sales in FY 2008 (versus 40.6% in 2007). Operating profit (EBIT) at 13.5% of sales came in noticeably higher versus the 2007 figure of 10.9%. However, the previous year’s figure was burdened by specific amortisation charges on intangible assets. Earnings before interest, taxes and amortisation (EBITA) amounted to EUR 34.3 million, accounting for 15.6% of sales (versus 15.9% in 2007). Net income totalled EUR 16.1 million (CHF 25.6 million) compared with EUR 17.1 million (CHF 28.1) in 2007. Future foreign-currency earnings were intentionally posted at roughly EUR 1.6 million lower in FY 2008 than actually will be realised, in order to conform to IFRS standards due to currency-hedging transactions. Nevertheless, this negative effect will have a positive impact in the financial year 2009. After taking this effect into account, adjusted net income of EUR
17.6 million is derived for FY 2008, which compares with adjusted net income of EUR 14.6 million for FY 2007. The previous year also included adjustments particularly for the effects stemming from German corporate tax reform.
WTG succeeded in reducing net debt by nearly EUR 10 million. Equity amounted to 46.4% at year-end 2008 (versus 41.6% at 31/12/2007), which, in combination with the conservative business model, safeguards all covenants. Based on future cash flows, no impairment was detected in any of the Group companies. As a sign of confidence, a positive signal to the shareholders is sent by proposing a dividend distribution at the Annual General Meeting. A constant dividend yield compared with 2007 has been derived as a basis of calculation, but based on the current share price.
In 2009, there are merely a few sectors that are likely to evade the effects of abstinence on the part of consumers. These include infrastructure projects, in particular, such as alternative energy production and essential medical technology products. Furthermore, inventory reduction by important customers should extend into the second quarter. We anticipate that these effects will be partially offset through the newly created Winterthur Service and Advisory Centres – particularly in Central and Eastern Europe, Asia and Brazil. Acquisitions as well as investments that do not serve to maintain the disposition for production, or cannot be amortized within a 12-month period, will be scaled back until further notice. Cost-cutting measures will be carried out proactively in 2009 as well.
The Board of Directors has decided to assign Edgar Rappold the position of Chairman, which should enable him to more intensely apply his experience and network of relationships in the service of the Group. Reto Braun will continue to serve on the Board of Directors as Vice-Chairman. Norbert Lamers has been appointed as Delegate to the Board of Directors. Edmar Allitsch was extremely successful as CEO in 2008 and will continue to serve the Group in this position.
The media and analysts’ conference featuring the Annual Report 2008 will be held at 10:00 a.m. on 18 March 2009 at the SIX Swiss Exchange.
For further information:
Dr. Edgar Rappold, Chairman of the Board of Directors
Markus Brütsch, CFO
Telephone: +41 52 234 41 41
Email: ir@winterthurtechnology.com
Fax: +41 52 234 41 06
www.winterthurtechnology.com
SIX Ticker Symbol: WTGN
ISIN: CH0021892606
Winterthur Technologie Group Profile
Winterthur Technology Group (WTG), with registered office in Zug, is a leading international supplier of complex grinding technology with production facilities in Switzerland, Germany, Austria, Sweden, Belgium, the USA, Russia and China. The Group holds a 40% equity interest in the stock exchange-listed company Wendt (India) Ltd. WTG is a holding company incorporated under Swiss law and listed on the SIX Swiss Exchange. It employs over 1,500 persons and realised sales of more than EUR 219 million in FY 2008. In close cooperation with its customers, the company develops and manufactures complex, high-margin consumer goods in the grinding technology segment with a high-technology content, in particular bonded grinding tools used in the cutting tool, automotive, turbine, machine tool and steel industries. The Group’s main brands are Winterthur, Wendt, Rappold and SlipNaxos. WTG products – ceramic grinding wheels, synthetic resin bonded grinding wheels, cut-off wheels, diamond and CBN grinding and dressing tools, together with grinding machine tools – are distributed in all the relevant markets of Europe, North and South America and Asia.
|
