First semester 2002 with 10% higher operating income
Net sales of the sia Group amount to CHF 119.2 million for the first semester 2002. Compared with the previous year and adjusted for currency fluctuations, this represents an increase of 15.2%. Operating income (EBIT) was boosted by 9.7% and totals CHF 11.5 million (previous year: CHF 10.4 million). The trading profit margin (9.6%) remains on the previous year's level (2001: 9.9%). Due to the negative impact of the strong Swiss franc, the net profit of CHF 6.3 million is below the CHF 7.8 million recorded for the previous year. The sia Group is planning further acquisitions for the second semester.
In the first six months the sia Group was able to boost sales from CHF 105.7 million to CHF 119.2 million, an increase of CHF 13.5 million or 12.7%. Acquired in 2001, sia Fibral Ltd. made a substantial contribution to this showing. The increase thus achieved by the Thurgau/Switzerland-based company exceeds the industry average by a large margin. The unfavourable influence of the strong Swiss currency depressed sales revenues by CHF 2.6 million. Net sales of the sia Group in local currencies totalled CHF 121.8 million.
The development of operating income before interest and taxes (EBIT) kept up with the growth of sales. The acquisition as well as the production process optimisation measures generated improved operating income of CHF 11.5 million (previous year: CHF 10.4 million). The trading profit margin of 9.6% is almost identical to the figure reported for the previous year (9.9%); this can be attributed primarily to the unfavourable exchange rate developments. The strong Swiss franc had a similarly negative effect on net income; the CHF 6.3 million recorded for the first semester 2002 is hence below the relevant figure for the previous year (CHF 7.8 million). Disregarding exchange rate influences, profits have actually increased.
Positive development of ordersOrders have developed very positively: an increase over the previous year of just under CHF 27 million or 20.0% can be reported. As a result, orders on hand have reached a record level. The sia Group reports boosted sales in all geographic areas of the world. Exceptional growth has been experienced in North America, where sales increased by 62.7%. Switzerland was the only country in which the consequences of the economic downturn were felt; here, a decrease of 5.9% was recorded.
Three of the four application areas (Metal, Automotive paint and bodywork, Furniture/Interior works) were able to boost sales. The only area in which sia Abrasives recorded a decline was Panels. Results in the metal and automotive paint and bodywork business are especially satisfactory: sales were boosted by 17.7% and 13.7% respectively in these fields.
Acquisitions and planned take-oversIntegration of sia Fibral Ltd. into the sia Group proceeded according to plan. The Fibral range perfectly supplements the sia product range and thus generates higher sales on both sides. Sales are hence significantly above the level of the previous year. By merging the two locations in Great Britain at the sia Fibral Ltd. headquarters per end of the year, we expect to achieve higher value creation and profitability.
On 1 July 2002 the sia Group acquired a further company: Weck Schleifmittel GmbH in Sol-ingen is a production and distribution company which primarily serves the metal-processing industry in Germany. Whilst sia Abrasives Deutschland GmbH will in future focus on the two market segments wood and automotive paint and bodywork as well as on trading activities, Weck Schleifmittel GmbH as a metals specialist will concentrate on the metal processing in-dustry.
For the sia Group, the USA is the most important growth market. The Group Management is currently looking into a number of acquisition options there. In June 2002 the declaration of intent regarding the acquisition of a specialised production and distribution company was signed. The due diligence process has been initiated.
OutlookThanks to the highly satisfactory developments in the first half of the year, and in view of the excellent stock of orders on hand, sia Abrasives expects sales for the business year 2002 to grow by substantially more than 10% and an EBIT margin of 9% to 10%. These assumptions are based on a stable economic environment and unchanged exchange rates. The Group's second-semester focus will be on the expansion and development of production operations with the aim of reducing processing and delivery times.
For further information
Peter A. Schifferle, CEO
Gerhard Mahrle, CFO
Phone: +41 52 724 45 75
Fax: +41 52 724 45 70
E-mail: ir@sia-abrasives.com
Internet: http://www.sia-abrasives.com/
® Correct nomenclature for sia Abrasives Holding AG
As there are other companies and organizations that use the same abbreviation as our company, we would be grateful if you could help to avoid any misunderstandings by always writing our name as follows: sia Abrasives (never just sia by itself). |
