The 13% fall in total income is due in roughly equal measure to the foreign exchange developments and the postponement of some large-scale projects in the Molds segment. This resulted in a slight shift in the sales breakdown of both segments of the Adval Tech Group. Components accounted for 68% (up from 65%) and Molds for 32% (down from 35%). Adval Tech achieved this gratifying EBITDA margin of 10.2% (1H 2014: 9.8%) through ongoing productivity improvements, strict cost controls and by exploiting additional synergies. In terms of EBIT, the highly unfavourable currency situation had an even greater impact for Adval Tech. Without the negative currency effects, Adval Tech would have been able to lift EBIT by CHF 0.1 million despite the lower total income and to improve the EBIT margin by 0.4 percentage points. The negative net profit is primarily due to the strong Swiss franc.

In the first half of 2015, the Components segment (metal and plastic components) generated total income of CHF 75.6 million (1H 2014: CHF 83.4 million). This corresponds to a decline of CHF 7.8 million (-9.4%) or CHF 3.7 million in currency-adjusted terms. Thanks to the successfully implemented cost-cutting drive and efficient cost controls, the Components segment nevertheless posted EBITDA of CHF 5.7 million (1H 2014: CHF 5.9 million). In currency-adjusted terms, this figure is CHF 1.1 million above the year-back figure. The Components segment lifted the EBIDTA margin by 0.4 percentage points to 7.5%.

In the first half of 2015, the Molds segment, which trades under the name FOBOHA, generated total income of CHF 35.8 million (1H 2014: CHF 44.8 million). This corresponds to a decline of CHF 9.0 million compared with the prior-year period. CHF 4.0 million of this is due to the currency trend. The delay of some projects until the second half at the Germany and China sites also impacted on the result. At CHF 4.1 million, the EBITDA figure for the Molds segment was CHF 1.7 million below the prior-year figure of CHF 5.8 million. This results in an EBITDA margin of 11.5% (1H 2014: 12.9%). In currency-adjusted terms, the segment's EBITDA was only CHF 0.8 million below the 2014 figure.

Outlook

Thanks to the systematic implementation of its focusing strategy the Adval Tech Group now has a lean organizational structure, which enables it to react quickly and efficiently to changes in the market. The Group intends to achieve future growth both organically – in business with automobile manufacturers and their direct suppliers, e.g. by expanding into Mexico – and with related applications. It is also examining the possibility of achieving growth through targeted acquisitions.

The strong Swiss franc remains a major challenge and has made it more difficult to win new orders for the Swiss sites. The Group is therefore forced to partially revise its original forecasts for 2015. Adval Tech is now targeting a currency-adjusted EBIT margin in line with 2014 for the current financial year. However, given the present exchange-rate conditions it will probably be very difficult for the Group to achieve a positive net result.