Demand in several end markets and regions has been recovering more quickly than expected since August. This has improved production capacity utilization, which has had a positive effect on the company's operating results. Based on the most current information available, SFS expects its operating results for the second half of the year to be significantly better than previously projected. The course of business thereafter remains subject to considerable uncertainty due to the COVID-19 pandemic.
After experiencing a sharp drop in demand in the first half of the year due to COVID-19, business activity in various markets has displayed a sustained positive trend since the summer months. This pleasing development has continued into the final quarter of the year. SFS is benefiting here from its balanced exposure in terms of end markets and regions. Automotive-related business areas that had been heavily impacted during the first half have shown a particularly strong recovery. In the electronics industry, SFS profited from successful product ramp-ups at key customers. The situation in the aviation industry remains challenging, however.
The significant improvement in demand has improved production capacity utilization, which has had a positive effect on the company's operating results. Based on the latest available data, SFS expects sales for the 2020 financial year to range between CHF 1.63 to 1.68 billion. Operating profit (EBIT) for the full year is forecast to range between CHF 180 million and CHF 200 million. Sales and operating profit for the 2020 financial year are thus expected to be lower compared to the previous financial year, but better than initially projected during the release of half-year results. Due to the COVID-19 pandemic, the course of business beyond the current financial year remains subject to considerable uncertainty.
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SFS Group AG published this content on 17 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 November 2020 05:14:05 UTC
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).
SFS GROUP AG 
