Results for the first half of financial year 2016: Feintool sales experience double-digit growth

Feintool International Holding AG / Results for the first half of financial year 2016: Feintool sales experience double-digit growth . Processed and transmitted by Nasdaq OMX Corporate Solutions. The issuer is solely responsible for the content of this announcement.

Feintool's long-term strategy focusing on fineblanking and forming in conjunction with consistent internationalization and technical innovation has once again proven a success for the technology company. With CHF 279 million between January 1 and June 30, 2016, Feintool increased its sales by 14 percent - 10 percent when adjusted for currency effects. Operating profits increased by as much as 46 percent compared to the previous year (by 38 percent when currency-adjusted) to CHF 21 million. In light of these numbers, Feintool is increasing  its guidance for the financial year 2016.

The global automotive industry has proven to be pleasingly stable in the first half of 2016. The North American market remained at its high level; automobile production in Europe was able to continue the previous year's light recovery (driven by German premium segment car manufacturers); the Asian market continued to grow, albeit by a slightly lesser degree. Global automobile production is estimated to have increased by 2 % compared to the prior year.

Positive business development
When adjusted for currency effects, group-wide sales increased by 9.8% to CHF 278.5 million compared to the previous year. Thanks to excellent utilization of all plants and the impact of the new alignment of the Swiss locations that has been initiated, the EBITDA - adjusted for currency effects - increased by 24.0% to CHF 37.0 million and the operating profit increased by 37.8% to 21.4 million, corresponding with an EBITDA margin of 13.3% and an EBIT margin of 7.7%. Both figures represent a record for Feintool. This development is the result of a consistent focus on fineblanking and forming as well as the increasing internationalization of production plants in all of the major automotive markets. In the reporting period, net income amounted to CHF 13.9 million, corresponding with a currency-adjusted increase of 81.3%.

The free cash flow amounted to CHF 2.7 million. This figure includes expenditures for investments, particularly for the expansion of infrastructure and capacity amounting to CHF 21.2 million.

In the second quarter orders received recovered in the investment goods business; overall they decreased slightly to CHF 43.0 million in the first six months.

All segments and regions positive
Sales for the parts manufacturing segment (System Parts) increased - adjusted for currency effects - by 9.2% to CHF 242.0 million. All regions continued to grow, led by Europe with 14.6% growth and a 52.6% share of sales; the US share of sales amounted to 37.2% and Asia's to 10.2%.

The Fineblanking Technology segment, active in the business  of capital investment, grew by 10.7% to CHF 44.4 million (currency adjusted). With a third party sales of CHF 36.4 million , Fineblanking Technology - similar to the previous year - contributed 13% of sales to the Group.

Long-term financing secured
In July 2016 Feintool placed a promissory note amounting to €65 million. The loan is intended for general business financing, particularly for the investments needed to ensure growth. The loan consists of three tranches with maturities of five, seven and ten years.

CEO change as of September 1 2016
As part of an age-related transition long in the making, Heinz Loosli will wind up his 7 years as CEO and hand the office over to his successor Bruno Malinek on September 1, 2016. Like his predecessor, the 50-year-old will run the high volume parts production of the System Parts segment and handle the responsibilities of CEO at the same time. Heinz Loosli will be nominated for election to the Feintool Board of Directors at the General Assembly on April 25, 2017.

Optimistic forecast
Feintool is anticipating the continuation of positive business development into the second half of the year. Assuming unchanged exchange rates, Feintool is increasing its guidance and predicts sales growth of 10% to CHF 555 million with an EBIT margin of 7.5%.

Short profile Feintool
Founded in 1959, this technology company is a world leader in the development of fineblanking systems and in the production of pre-finished fineblanked and formed components for demanding industries, particularly the automotive industry. Feintool maintains a close working relationship with its customers throughout the entire fineblanking process - from component and tool design, to system engineering and large-scale component production.
With its combination of fineblanking and cold forming, Feintool is the only full-service provider for the efficient production of complex precision components in large quantities. Feintool's processes support the current automotive trends toward lighter vehicles, improved transmissions and module types. As a driver of innovation, Feintool consistently pushes the boundaries of fineblanking.
With locations in Europe, Japan, China and the US, Feintool is represented in the most important automotive markets in the world. Headquartered in Lyss, Switzerland, Feintool achieves revenues of roughly half a billion Swiss francs and employs around 2,200 people. Feintool trains about 60 young people at its various locations, as tool mechanics, engineers, mechatronics and other professions, thus ensuring that its ranks can be replenished with in-house talent.

Financial figures at a glance

1 compared to the same period in the previous year

All detailed information regarding the 2016 semi-annual report can be found at http://www.feintool.com/en/company/investor-relations/

Feintool International Holding AG
Industriering 8
3250 Lyss
Switzerland

Media Spokesperson

Karin Labhart

Tel.      +41 32 387 51 57
Mobile  +41 79 609 22 02
karin.labhart@feintool.com
www.feintool.com

The press release can be downloaded from the following link:

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Feintool International Holding AG
Industriering 8 Lyss Switzerland

ISIN: CH0009320091;