Zug, 28 January, 2010

Robust order backlog for first-quarter 2010 – EUR 10 million reduction in net debt – strong cash position

Winterthur Technology Group (WTG) realised sales of EUR 138 million (CHF 208 million) in the financial year 2009, compared with sales of EUR 219 million (CHF 347 million) posted in the record-year 2008, corresponding to a decline of 37%. The decrease in sales was limited to 22% in the fourth quarter; tools (consumables), experienced a decrease of only 17%. The results show that the extraordinary inventory reductions by the company’s customers now appear to have come to an end. Despite all the adversities, WTG achieved a low double-digit EBITDA margin. The positive net result is burdened by cash-neutral amortisation charges of EUR 4.6 million (CHF 7.0 million) and restructuring costs for the financial year 2009 of EUR 1.5 million (CHF 2.3 million). No further headcount reductions are planned for FY 2010. The improved cost structure, coupled with a boost in order intake expected to result in increased 2010 sales, should pave the way for a gradual return to former margin strength.

As of 1 January 2010, the tools business reported an order backlog of EUR 25 million (CHF 38 million), compared with the record-high of EUR 29 million (CHF 45 million) the previous year. Order intake has been favourable since October 2009. Recent investments in personnel in the Asian markets are now paying off. In particular order intake figures from China surpassed expectations. Innovations in the area of stainless-steel conditioning as well as in high-precision finishing, should help WTG in 2010 to also improve its share in traditional markets.

WTG also displayed relatively strong cash flow, which enabled the group to reduce net debt by roughly EUR 10 million (CHF 15 million). At year-end 2009 cash holdings amounted to EUR 16 million (CHF 24 million) , compared with EUR 12 million (CHF 18 million) at 31 December 2008. The equity ratio stands at approximately 50%. These strengths ensure the fulfilment of all covenants.

The complete results will be published on 22 March 2010 at 07:00.



For further information:
Dr. Edgar Rappold, Chairman of the Board of Directors
Markus Brütsch, CFO
Telephone: +41 52 234 41 41
E-mail: ir@winterthurtechnology.com
Fax: +41 52 234 41 06
www.winterthurtechnology.com
SIX Ticker Symbol: WTGN
ISIN: CH0021892606


Winterthur Technology 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, China and South Korea. 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 employed a staff of over 1,500 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 as well as Asia.