BURKHALTER HOLDING AG MEDIA RELEASE
2017 Half-Year Results As Expected
As expected and as previously announced, the Burkhalter Group closed the first half of 2017 with a slight increase in operating profit and a reduction of -8.3% in Group profit. This is due to a fall in income from Alpiq Burkhalter Technik AG, a 50% joint venture between Burkhalter Holding Ltd and Alpiq Intec AG. A similar trend is expected for the second half of 2017.
Zurich, 18 September 2017
The outlook with which the Burkhalter Group started the 2017 financial year has proved right after the first six months. Despite a slight increase in the operating profit (without joint venture +2.7 %), the Group profit has decreased by -8.3%, which is due to income from Alpiq Burkhalter Technik AG falling from CHF 2,996 million in the first half of 2016 to CHF 1,294 million in the first half of 2017. This fall is attributable to work on the Gotthard Base Tunnel, which is almost complete.
The earnings per share decreased by -8.5% on the previous year (+8.9%) to CHF 2.47 (previous year CHF 2.70). The operating result (EBIT) fell by -6.3% to CHF 18.5 million (previous year CHF 19.7 million), and the Group profit decreased by -8.3% to CHF 14.8 million (previous year CHF 16.2 million). At CHF 247.6 million, sales were more or less on a par with the previous year (244.4 million).
Growth through selective acquisitions
The Burkhalter Group purchased Bieri Elektrotechnik AG in Uetendorf on 9 January 2017. The company builds switchgear assemblies and has been operating in the electrical market since 1989. Its products range from installation distributors for private households and large-scale system assemblies with measuring fields for commercial and industrial use through to control cabinets for building automation and measuring and control technology applications.
As of 30 June 2017, the Burkhalter Group comprised 45 independent electrical engineering companies in 99 locations in Switzerland. Bieri Elektrotechnik AG is the 19th acquisition by the Burkhalter Group since its IPO in June 2008. It remains a part of the Group's strategy to achieve inorganic growth via the targeted purchase of other Swiss electrical engineering companies. The Burkhalter Group is always on the lookout for good companies and is regularly engaged in negotiations. However, as the Group is profit-oriented and acquisitions are only made selectively and at fair prices, it is difficult to say in advance when the next acquisition will take place.
Outlook
As a result of the fall in income from Alpiq Burkhalter Technik AG, the Burkhalter Group's management currently anticipates that earnings per share will decline in the 2017 financial year compared with the 2016 financial year.
Key figures
In CHF million | 30.06.2016 | 30.06.2017 | + / - in % |
Operating result (EBIT) | 19.7 | 18.5 | -6.3 |
Group profit | 16.2 | 14.8 | -8.3 |
Group sales | 244.4 | 247.6 | +1.3 |
CHF | |||
Earnings per share | 2.70 | 2.47 | -8.5 |
The 2017 interim report can be downloaded from the Burkhalter website at http://www.burkhalter.ch/en/investor-relations/reports
Telephone conference: Monday, 18 September 2017, from 09h15
The Burkhalter Group will discuss its 2017 consolidated interim financial statements during a telephone conference today.
Please call in five minutes before the start of the conference (at 09h15) on
+41 (0)58 310 50 00 (Europe)
+44 (0)203 059 58 62 (UK)
+1 (1)631 570 56 13 (USA)
The moderator for the telephone conference will connect you with the Chairman of the Board of Directors, Mr Gaudenz F. Domenig and the CEO and the delegate of the Board of Directors, Mr Marco Syfrig.
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