Feintool Group results for financial year 2013: Double-digit growth in sales and earnings

Feintool International Holding AG / Feintool Group results for financial year 2013: Double-digit growth in sales and earnings . Processed and transmitted by Nasdaq OMX Corporate Solutions. The issuer is solely responsible for the content of this announcement.

Feintool has once again ended its financial year with a positive result. Sales in the 2013 financial year increased by a substantial 12 percent year on year to CHF 477 million, with operating profit increasing by 11 percent to CHF 24.5 million.

In the 2013 financial year, the Feintool Group generated sales of CHF 477.4 million (+11.8%). The series parts business System Parts grew sales by 21%, with this figure being split equally between organic growth and acquisitions (purchase of precision forming specialist Herzing + Schroth in 2012). Currency fluctuations, particularly the weakness of the Japanese yen, impacted sales by CHF 7.6 million. Sales at the capital goods business, Fineblanking Technology, were largely constant. As expected, the Automation segment posted a 9.5% drop in sales, taking the disposal of the factory in Berlin in 2012 into account.

Good earnings
All segments and regions generated a positive result in the year under review. The Feintool Group rose its EBIT by 11.3% to CHF 24.5 million. The EBIT margin was 5.1%. The series parts business System Parts profited from the healthy automotive market worldwide and the initial results of orders won in previous years. The segment closed the financial year with an EBIT of CHF 21.3 million. This good result was achieved despite continuing start-up costs for the new production plant in China, seven-figure up-front costs for product launches in the USA and a weak Japanese yen. The Fineblanking Technology segment posted a somewhat smaller result of CHF 6.5 million, influenced by a changing product mix and higher development costs. In the Automation segment, IMA Automation in Amberg (Germany) generated an EBIT of CHF 3.7 million, or 8.8%.

Due to good performance at an operating level and a tax rate positively influenced by one-off factors, Feintool achieved net income of CHF 18.8 million, representing an increase of 66%.

Strong order intake  
Global growth in the automotive industry was sustained in 2013, with marked differences between the regional markets. Sales rose in Asia and the USA, but remained constant in Europe. Overall, orders received rose by 32.2% to CHF 531.9 million. In the System Parts segment they improved by 41.8%, influenced by new product programmes and the acquisition of Herzing + Schroth. The capital goods business Fineblanking Technology suffered from the reluctance of major European countries to invest, recording a fall of 12.0%, while Automation orders received rose by 30.0%.  

Orders backlog rises yet again
The total orders backlog came to CHF 242.7 million. Of this, CHF 181.0 million was attributable to the System Parts segment. At CHF 38.4 million and CHF 36.0 million respectively, the Fineblanking Technology press business and the Automation segment have enough orders to last well into the second half of 2014.  

Higher dividend payment planned
Given the Feintool Group's positive performance as well as its strong financial position, the Board of Directors has decided to propose to the Annual General Meeting on 15 April 2014 that it approve a 20% higher dividend of CHF 1.20 per Feintool share.

Changes on the Board of Directors
The Board of Directors will also propose to the Annual General Meeting that Dr. Thomas Muhr, Managing Partner at Muhr und Bender KG, be appointed to the Board. Furthermore, Steffen Schroth, a member of the Board to date, will not be standing for reelection.

Optimistic outlook
Assuming the global business situation in the relevant sectors remains stable, Feintool is optimistic about the prospects for the 2014 financial year. Based on nominations already received from its major customers, it is therefore forecasting Group sales of approximately CHF 520 million and an operating margin of around 7 percent. In the medium term, the aim is to increase sales to CHF 600 million on an EBIT margin of 8 percent.

The Feintool strategy

Successful specialization and high investment ratio
In recent years Feintool has concentrated heavily on its core competencies of fineblanking and forming; these now account for about 90% of Group sales. As a partner to global automotive suppliers and manufacturers, Feintool specializes in high-quality solutions for fineblanking systems and in the mass production of high-precision components for seat mechanisms, drive trains and safety systems. The internationalization of the Feintool Group was energetically pursued through the restructuring of the plant in Nashville (USA) and the opening of a manufacturing facility in Taicang (China). In 2013 Feintool also continued with its extensive investment strategy, thanks to which the Group now has one of the most up-to-date ranges of fineblanking machinery on the market anywhere in the world today.

Market growth and market shares
Feintool's manufacturing activities are located mainly in Europe, the USA, Japan and China - the major automotive markets where its products are actually sold. Together, these markets represent solid yearly growth estimated at 3% for the period up to 2021. This regional presence in strong markets protects Feintool from exchange rate fluctuations and offers sound growth prospects.

Key financial figures in brief

Figures in CHFFY 2013
in CHF mFY 2012*
in CHF mChange in %Sales - Feintool Group477.4427.011.8   Fineblanking Technology segment98.699.4-0.8   System Parts segment358.6296.321.0   Automation segment41.849.4-15.5Earnings before interest, tax, depreciation and amortization (EBITDA)51.743.020.2Operating profit (EBIT)24.522.011.3   Fineblanking Technology segment6.57.4-11.1   System Parts segment21.311.880.4   Automation segment3.77.1-48.4Net income 18.811.465.9Total assets398.9385.93.4Equity183.8136.834.4Net debt33.075.3-56.2Orders received - Feintool Group531.9402.332.2   Fineblanking Technology segment93.0105.2-12.0   System Parts segment402.8284.041.8   Automation segment51.539.630.0Orders backlog - Feintool Group242.7191.526.7   Fineblanking Technology segment38.445.6-15.8   System Parts segment181.0138.131.0   Automation segment36.025.839.3Employees 2015180911.4Apprentices103994.0

* adjusted in line with new accounting standards (esp. revised IAS 19)

For detailed information on Feintool's results for 2013, please visit http://www.feintool.com/en/company/investor-relations.html

Feintool International Holding AG
Industriering 8
3250 Lyss
Switzerland

Media spokesperson

Karin Labhart
Phone   +41 32 387 51 57
Fax       +41 32 387 54 16
Mobile  +41 79 609 22 02
karin.labhart@feintool.com
www.feintool.com

The press release can be downloaded from the following link:

Press Release (PDF)


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Source: Feintool International Holding AG via Globenewswire
HUG#1766046

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Feintool International Holding AG
Industriering 8 Lyss Schweiz

ISIN: CH0009320091;