GEORG FISCHER
Swiss plastics processor significantly improves revenues and profitability in H1 / All divisions back to making money
During the first six months of 2010, all three business divisions of Swiss plastics processor Georg Fischer (GF, Schaffhausen; www.georgfischer.com) made the most of the market recovery, especially in Asia. Revenues rose by 17% over H1 2009 to CHF 1.7 bn (about EUR 1.2 bn). Not considering currency exchange issues and changes rooted in consolidation, the year-on-year increase even reached 23%.
Profitability improved greatly thanks to increased revenues and capacity as well as a lower cost basis – the result of restructuring efforts undertaken in 2009. While the company still reported an operative loss of CHF 122m (EUR 90m) in H1 2009, this year, Ebit stands at CHF 73m (EUR 54m). The restructuring programme launched in May 2009 in an effort to cut costs has almost run its course, the company said, adding that financing remains on very solid footing.
Although the infrastructure division suffered the effects of Europe’s long and harsh winter, GF Piping Systems saw revenues rise by 10% to CHF 584m (EUR 429m). The plastics pipe division will commission a new, 20,000 m2 building services plant in Beijing in August, bringing GF Piping’s Asian production sites to 12, almost double the plants it ran only five years ago.
On the heels of the upswing in the automotive industry, GF Automotive saw revenues increase by 25%. The Swiss automotive supplier reports that both its plants in China are back to working at full capacity and are actually undergoing expansions to meet the growing local demand.
Although Georg Fischer is positive in its outlook for the next six months, the level of optimism varies by geographic region. While demand in Asia is high and the group is reaping the profits of investments made in 2009, the group said business in the US was developing at a nice pace and even in Europe, especially among the automotive industry, GF sees signs of an upswing. Nevertheless, as the current market climate remains one of volatility, the company will continue to manage costs, maintaining its strategic outlook and medium-term financial goals.
Profitability improved greatly thanks to increased revenues and capacity as well as a lower cost basis – the result of restructuring efforts undertaken in 2009. While the company still reported an operative loss of CHF 122m (EUR 90m) in H1 2009, this year, Ebit stands at CHF 73m (EUR 54m). The restructuring programme launched in May 2009 in an effort to cut costs has almost run its course, the company said, adding that financing remains on very solid footing.
Although the infrastructure division suffered the effects of Europe’s long and harsh winter, GF Piping Systems saw revenues rise by 10% to CHF 584m (EUR 429m). The plastics pipe division will commission a new, 20,000 m2 building services plant in Beijing in August, bringing GF Piping’s Asian production sites to 12, almost double the plants it ran only five years ago.
On the heels of the upswing in the automotive industry, GF Automotive saw revenues increase by 25%. The Swiss automotive supplier reports that both its plants in China are back to working at full capacity and are actually undergoing expansions to meet the growing local demand.
Although Georg Fischer is positive in its outlook for the next six months, the level of optimism varies by geographic region. While demand in Asia is high and the group is reaping the profits of investments made in 2009, the group said business in the US was developing at a nice pace and even in Europe, especially among the automotive industry, GF sees signs of an upswing. Nevertheless, as the current market climate remains one of volatility, the company will continue to manage costs, maintaining its strategic outlook and medium-term financial goals.
22.07.2010 Plasteurope.com [216837]
Published on 22.07.2010
German version of this article...