Georg Fischer (GF, Schaffhausen / Switzerland; www.georgfischer.com) blamed negative currency effects, volatile raw material prices and a slump in the fourth quarter for a 59% year-on-year fall in operating profit (EBIT) to CHF 134m (EUR 90m). Sales dipped by less than 1% to CHF 4.46 bn. The 2008 EBIT margin fell to 3% compared with 7% in 2007.

GF Piping Systems reported growth of 12% year-on-year adjusted for currency effects and acquisitions, with sales of CHF 1.22 bn in 2008, driven by good progress in emerging markets. EBIT fell slightly to CHF 122m, CHF 4m down on 2007, but accounted for over 90% of overall EBIT at the company.

Expansion in the piping systems unit in 2008 was boosted by the acquisitions of US market leader Central Plastics – see Plasteurope.com of 16.01.2008 – and Canadian distributor Alfa Plastics – see Plasteurope.com of 23.05.2008. During the year GF also acquired Swiss domestic and heating water supply systems specialist JRG Gunzenhauser and developed access to Asian growth markets through its production facilities in China, India and Malaysia.

GF said that the piping systems unit will develop sales in non-cyclical businesses, emerging markets and Asia in the future to continue to stabilise profitability. Overall, the company said that it is not possible, in the current economic climate, to give a forecast of business performance in 2009. It is, however, adhering to its medium-term growth and earnings targets, with the increasing need for clean water and demand in new markets offering growth opportunities.

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Georg Fischer annual report 2008 as a PDF document (3,211 KB)