GEORG FISCHER
Piping systems unit reports profit as Swiss group records loss / Significant improvement in second half year
The GF Piping Systems unit of Georg Fischer (GF, Schaffhausen / Switzerland; www.georgfischer.com) has reported an operating profit (EBIT) before special charges of CHF 80m (EUR 55m) in 2009 compared with CHF 122m in 2008. Sales were CHF 1.07 bn, 13% down on 2008. The company said that operating profit had improved significantly in the second half of the year thanks mainly to cost-cutting measures. It added that sales were slow in the first quarter, but stabilised and slightly increased during the second half of the year. Geographically, sales in Europe showed the biggest fall, especially in eastern Europe and Russia. Sales in Switzerland remained solid. Turnover in America was also down owing to the poor economic climate. Sales in Asia recovered in the second half, especially in China.
GF said that its planned cost-cutting measures have now been fully implemented, including the merger in Italy of two manufacturing operations into one location in Busalla – see Plasteurope.com of 03.06.2009. The merger incurred special charges of CHF 13m as well as a goodwill write-off of CHF 10m. As a result, operating profit after one-off special charges fell to CHF 57 million. New plants were opened in China and India in 2009 – see Plasteurope.com of 10.11.2009 – and new market segments such as cooling lines, ship maintenance systems and renewable energies were established.
Overall, GF reported an operating loss before special charges of CHF 58m, compared with a profit of CHF 227m in 2008, thanks to significant losses in the automotive and GF AgieCharmilles machine tool business groups. Sales in 2009 fell by 35% year-on-year to CHF 2.9 bn.
The company said that demand has slightly improved in the first part of 2010 thanks to rising production and investment levels in Asia as well as in several sectors in Europe, including the car industry. However, it said that uncertainties remain regarding currency and raw material trends. If the improvement is sustained, GF said that achieving a positive net result for the year would be possible. In the medium-term, given its sustainable cost base reduction, the company repeated its 2012 objective of an EBIT margin of 8%, assuming a sustained market recovery in 2011.
e-Service:
Annual financial statements 2009 Georg Fischer as a PDF document (350 KB)
GF said that its planned cost-cutting measures have now been fully implemented, including the merger in Italy of two manufacturing operations into one location in Busalla – see Plasteurope.com of 03.06.2009. The merger incurred special charges of CHF 13m as well as a goodwill write-off of CHF 10m. As a result, operating profit after one-off special charges fell to CHF 57 million. New plants were opened in China and India in 2009 – see Plasteurope.com of 10.11.2009 – and new market segments such as cooling lines, ship maintenance systems and renewable energies were established.
Overall, GF reported an operating loss before special charges of CHF 58m, compared with a profit of CHF 227m in 2008, thanks to significant losses in the automotive and GF AgieCharmilles machine tool business groups. Sales in 2009 fell by 35% year-on-year to CHF 2.9 bn.
The company said that demand has slightly improved in the first part of 2010 thanks to rising production and investment levels in Asia as well as in several sectors in Europe, including the car industry. However, it said that uncertainties remain regarding currency and raw material trends. If the improvement is sustained, GF said that achieving a positive net result for the year would be possible. In the medium-term, given its sustainable cost base reduction, the company repeated its 2012 objective of an EBIT margin of 8%, assuming a sustained market recovery in 2011.
e-Service:
Annual financial statements 2009 Georg Fischer as a PDF document (350 KB)
05.03.2010 Plasteurope.com [215642]
Published on 05.03.2010
German version of this article...