Steinhausen, March 5, 2021 -- Schweiter Technologies posted a 
record-high result amid challenging market conditions. Despite the 
COVID-19 pandemic and negative currency effects, the Group posted sales 
of CHF 1,160.2 million in 2020, which was only slightly lower than the 
previous year's CHF 1,179.6 million (-2%). In local currencies, sales 
were +3% higher versus 2019. Group EBITDA improved by a staggering +43% 
compared with the previous year (+49% in local currencies), reaching a 
new record high of CHF 175.7 million. The return on net sales rose by 
close to 5 %-points to 15.1%. EBIT also rose faster than sales to CHF 
137.6 million (previous year: CHF 85.2 million), while net income 
increased to CHF 103.5 million (previous year: CHF 60.0 million). 
 
   Operating cash flow came to about CHF 158 million, equivalent to a 
year-on-year increase of more than 51%. Cash and cash equivalents rose 
to around CHF 164 million following a dividend distribution of 
approximately CHF 57 million. 
 
   At the General Meeting on April 1, 2021, the Board of Directors will 
propose paying a dividend of CHF 40 per bearer share and to elect two 
new independent members of the Board of Directors. A change at the top 
of the management board is also planned for 2022. 
 
   The 2020 Annual Report and the investor presentation can be downloaded 
from: 
http://www.schweiter.ch/s1a200/investoren/geschaftsberichte-prasentationen.html 
 
 
 
 
 
Key figures 
Schweiter Technologies Group           2020         2019 
(in CHF m)                                                 + / - 
                                 ----------   ----------   ----- 
 
Net revenues                        1,160.2      1,179.6     -2% 
EBITDA                                175.7        123.1    +43% 
  as a % of net revenues              15.1%        10.4% 
EBIT                                  137.6         85.2    +61% 
Net income                            103.5         60.0    +73% 
-------------------------------  ----------   ----------   ----- 
 
   Business performance 
 
   In a year dominated by the COVID-19 pandemic, the diversification of 
Schweiter Technologies proved to be a strength. While some market 
segments and geographies were affected by the lockdown measures and had 
to cope with a steep fall in demand, the European display business in 
particular, with its variety of clear sheet products, and the Core 
Materials business for the wind energy sector benefited from firm 
demand. 
 
   The Group responded promptly to the pandemic in order to ensure that 
production continued uninterrupted while protecting the health of its 
employees. In particular, production at sites that manufacture 
transparent sheets for protection against infection were operating at 
the limits of capacity. Moreover, demand from wind energy customers 
picked up appreciably following a strong performance the previous year. 
 
   A flexible response at production sites with lower capacity utilization 
coupled with lower raw material costs and selective price adjustments 
produced a disproportionately large increase in profitability and a 
record-high result. 
 
   Display 
 
   The European display business was marked by two contrasting trends. On 
the one hand, clear sheet production was running at full capacity, and 
the company took a number of measures so as to be able to meet the 
exceptionally high demand for transparent sheets. On the other hand, 
display revenues in the areas of advertising, trade fairs and interior 
design plummeted between March and September. 
 
   The US display business also suffered a massive downturn in demand in 
these areas. The integration and restructuring of the foamboard business 
of Newell Brands Inc., acquired in September, was set in motion 
successfully as planned. The acquisition will contribute to the Group's 
profit growth as of the coming year. 
 
   Growth in profitability clearly outpaced sales growth owing to falling 
raw material prices, high capacity utilization in clear sheet production, 
a temporary reduction in production capacity plus strict cost discipline 
at all sites. 
 
   Architecture 
 
   The Architecture segment produced very mixed results in regional terms. 
While sales in the USA increased further following a strong performance 
the previous year, the European and Asian businesses fell short of the 
2019 levels. 
 
   The construction sector in Europe showed wide differences from country 
to country. Construction projects in Central Europe, primarily Germany, 
continued virtually unabated, whereas construction activity in some core 
markets such as France, the United Kingdom, and southern Europe came to 
a complete standstill at times owing to the pandemic. On top of this, 
the ongoing uncertainties surrounding Brexit had a negative impact on 
demand in the UK. 
 
   Construction in Asia was also very mixed regionally, impacted by project 
delays and building freezes. In China, the construction business 
practically came to a standstill in the first quarter but then recovered 
gradually, reaching gratifying levels by the fourth quarter. The markets 
in India and the Middle East felt the impact of the pandemic with a 
certain time lag. 
 
   The US construction industry was also hit by temporary lockdown measures, 
but nevertheless managed to gain market share and post further sales 
growth despite the pandemic-related challenges. Amid challenging market 
conditions, sales continued to rise, driven by the strategic expansion 
of the customer base, an ever improving service level, and intensified 
consulting services for technical applications. 
 
   Core Materials 
 
   The Core Materials segment maintained the previous year's strong 
momentum despite COVID-19-related challenges, posting double-digit 
revenue growth. In particular, the ongoing firm demand for core 
materials for the wind energy sector was a key factor in the steep sales 
gains and resulted in very high capacity utilization at the production 
sites and disproportionately high profit growth. 
 
   In regional terms, China again reported the strongest sales growth 
following significant increases the previous year. Demand from wind 
customers in the USA and Europe also trended strongly. Moreover, sales 
in the US marine market outpaced the previous year as of the second 
quarter, whereas revenues in the European Non-wind area were lower 
year-on-year. 
 
   3A Composites has a great competitive advantage since it covers the 
entire value chain in the balsa business, from seedlings to its own 
FSC(R) -certified plantations in Ecuador and Papua New Guinea and right 
up to the finished products. This makes the business less exposed to 
rising raw material prices and moreover ensures reliable delivery of 
balsa products to its customers. 
 
   A new PET production facility in China started the production at the end 
of 2020 in order to be closer to Asian customers and to be better able 
to meet the steeply rising demand. 
 
   Transport & Industry 
 
   After the most successful year in its history to date, the Mobility 
segment reported a double-digit decline in its sales revenue. 
 
   The Road Vehicles business was particularly hard hit by the current 
crisis because the component market for coaches collapsed almost 
completely as of the second quarter and did not stage any significant 
recovery for the rest of the year. 
 
   Sales revenue in the Rail business also fell short of the previous year, 
although the decline in this area was not nearly as steep. 
 
   Despite numerous adverse circumstances, the segment managed to turn in a 
satisfactory profit by promptly adjusting capacity and imposing strict 
cost management. 
 
   Outlook 
 
   3A Composites has gotten off to a strong start in the new year. However, 
business performance will be determined by the future course of the 
pandemic and the economic impact of the related lockdown measures. 
Nevertheless, it will be difficult to repeat the record result from the 
previous year in 2021. 
 
   The Display segment already demonstrated in the third quarter of 2020 
that a swift recovery of the markets is possible. Assuming positive news 
about vaccines, additional economic stimuli, and an end to political 
uncertainty in the USA, we anticipate a gradual recovery of the retail 
trade and, along with that, an upturn in revenues for advertising and 
shop design. On the other hand, we expect that demand for transparent 
sheets for protection against infection will weaken. 
 
   The Architecture segment should benefit in 2021 from a catch-up effect 
from postponed projects along with the implementation of projects that 
have already been initiated. However, a temporary stagnation in the USA 
is to be expected in the second half of 2021 because the fall-off in new 
building projects in 2020 will take some time before it affects the 
façade market. 
 
   The Core Materials segment forecasts demand to remain high in the wind 
energy business area. Moreover, the Non-wind area holds out the promise 
of additional growth opportunities. On the other hand, sales prices, 
especially in China, can be expected to fall owing to changed market 
conditions and tougher competition. 
 
   The Transport segment anticipates a challenging year because the market 
for buses will remain weak before any recovery sets in. The demand for 
rail vehicles, by contrast, is more robust but, depending on how the 
pandemic plays out, there may be further postponements of infrastructure 
projects, which would have a direct impact on demand for trains and 
railways. 
 
   General Meeting 
 
   Based on Art. 27 of the Federal Council's Ordinance 3 on Measures to 
Combat the Coronavirus (COVID-19 Ordinance 3), the General Meeting on 
April 1, 2021 will be held, as it was last year, without the presence of 
shareholders in person. Voting rights may be exercised through written 
or electronic power of attorney delegated to the independent proxy 
holder. Further information will be sent with the Invitation. 
 
   The Board of Directors will propose paying an unchanged dividend of CHF

(MORE TO FOLLOW) Dow Jones Newswires

March 05, 2021 00:00 ET (05:00 GMT)