SFS Group AG Reports Unaudited Consolidated Earnings Results for the First Half of 2016; Revises Earnings Guidance for the Full Year 2016
July 21, 2016
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SFS Group AG reported unaudited consolidated earnings results for the first half of 2016. For the period, the company consolidated sales of CHF 688.8 million in the first half of 2016. This corresponds to a year-on-year increase of 2.7%. Growth resulted from changes in the scope of consolidation and favorable currency movements. Excluding these positive effects, sales were practically unchanged from the previous year's figure. In absolute numbers, operating profit EBITA improved from CHF 70.4 million in the previous year to CHF 93.3 million, which corresponds to an increase of 32.6%. This pleasing growth is attributed to various factors and measures. The clearly above-average sales growth at business operations with high value added contributed to the good result, as did the constant renewal of portfolios with innovative products and the implementation of improvement projects. Consolidated net income for the period amounted to CHF 47.1 million, an increase of 48% from the prior-year figure.
For the full-year 2016, the company expects sales growth for the current to be at the lower end of the previously guided range of 24%. The main reason for this deviation is the aforementioned quicker-than-expected phase-out of trading products at the Electronics division. On the other hand, company expect the EBITA margin for the year as a whole to be at the upper end of the previously given range of 13-14%, which represents a considerable improvement over the 12.5% margin reported for the previous fiscal year (normalized EBITA).
SFS Group AG, formerly SFS Holding AG, is a Switzerland-based company that develops and manufactures mechanical fastening systems and precision formed components. The Company serves the automotive, construction, construction supply, electrical, electronics, aerospace and medical components industries. It consists of three operating segments which represent the three business models: Engineered Components, which are customer-specific products under the SFS intec and Unisteel brands; Fastening Systems, which are application-specific products under the SFS intec and GESIPA brand, and Distribution and Logistics, which are market-oriented product ranges and logistics solutions under the SFS unimarket brand throughout Switzerland. Its subsidiaries include, among others, Ncase Limited, a supplier of subframes for rainscreen cladding, as well as developer and manufacturer of disposable products made of metal and plastic for medical device original equipment manufacturers (OEMs).