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Gurit made good progress in strategy implementation. The acquisition of PH Windsolutions, the foundation of a balsa wood joint-venture in Indonesia and the integration of the acquired PET business into the Company`s Composite Materials business represent the key achievements in the first half-year 2017. Sales-wise, Gurit met mixed market conditions across its target industries which led to a temporary dip in sales; and yet, the Company was able to further increase its operating profitability by 11% year-on-year.
Gurit Composite Materials
The business unit Composite Materials achieved net sales of CHF 129.7 million in the first half of 2017 (1HY 2016: CHF 136.0 million). This represents a decrease of -1.8% on currency-adjusted basis and -4.6% in reported Swiss francs. Sales to the wind energy market dropped by -3.0% on a currency-adjusted basis (-5.9% in reported Swiss francs) to CHF 69.1 million in the first six months of 2017 (1HY 2016: CHF 73.5 million). The decline mainly results from a weaker than expected demand situation in India which could not be fully compensated by the amount of newly installed capacity in other global wind energy regions. Revenues in other material markets (Marine, Industrial, Automotive Materials) decreased by -0.4% on a currency-adjusted basis (-3.1% in reported Swiss francs) to CHF 60.6 million in the first half of 2017(1HY 2016: CHF 62.5 million), mainly due to the continued hesitant order situation in the European and Asian marine leisure markets as well as the ongoing lack of large builds in the Middle Eastern construction industry due to the end customer credit situation. Sales to the European Aerospace industry showed further growth.
Gurit Composite Components
The business unit Composite Components reported net sales of CHF 9.8 million for the first half-year 2017 as compared to CHF 9.4 million in the first six months of 2016. This represents an increase of 14.8% on a currency-adjusted basis (+4.3% in reported Swiss francs).
Gurit Tooling
In Tooling, sales of wind turbine blade moulds and related equipment in the first six months of 2017 came in well and above the Company`s estimate at the beginning of the year. Demand from both Chinese and international customers was positive, also with regard to moulds for off-shore wind installations. Revenues increased by 0.5% on a currency-adjusted basis (‑3.3% in reported Swiss francs) to CHF 35.6 million (1HY 2016: CHF 36.8 million).
Key Financial Figures
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Key Financial Figures
in TCHF
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1HY 2016
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1HY 2017
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Change in %
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Change at constant rates
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Net Sales by Markets:
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|
|
|
|
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Wind Energy
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73'497
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69'139
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-5.9%
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-3.0%
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Other Material Markets
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62'495
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60'575
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-3.1%
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-0.4%
|
|
Gurit Composite Materials
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135'992
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129'714
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-4.6%
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-1.8%
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|
|
|
|
|
|
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Gurit Composite Components
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9'417
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9'823
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4.3%
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14.8%
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Gurit Tooling
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36'847
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35'647
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-3.3%
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0.5%
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|
|
|
|
|
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TOTAL NET SALES
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182'256
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175'184
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-3.9%
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-0.5%
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Operating profit
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19'113
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21'220
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11.0%
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13.2%
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EBIT
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19'113
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21'220
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11.0%
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13.2%
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Profit for the period
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14'104
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15'319
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8.6%
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8.6%
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| |
|
|
|
|
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Operating cash flow
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12'593
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11'068
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|
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Capital expenditures
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7'535
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4'034
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Equity ratio
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72.9%
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77.5%
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|
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FTEs
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2,187
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2,237
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Strong Operating Profit and Balance Sheet
Despite the challenging market environment in the Composite Materials business, Gurit was able to achieve a further improved operating profit of CHF 21.2 million in the first six months of 2017. The operating profit margin for the first half-year 2017 rose to 12.1%.
Profitability in particular benefited from the continued good turnover in the tooling business as well as a favorable product mix in the composite materials business and a marked improvement in the automotive components business. The ongoing operational improvements also contributed to the exceptionally strong profitability level.
Net profit for the first half-year 2017 amounted to CHF 15.3 million (1HY 2016: CHF 14.1 million). This represents an increase by 8.6% and equals to earnings per listed bearer share of CHF 32.78 (1HY 2016: CHF 30.16).
Gurit generated a positive net cash flow from operating activities of CHF 11.1 million in the first half-year 2017. Capital expenditures amounted to CHF 4.0 million in the first six months of 2017 and were used for replacement and upgrading of production equipment as well as for an additional, larger production bay at the Company`s Tooling premises in Taicang, China.
Outlook
Overall, Management confirms to reach a low single-digit revenue growth for the full year 2017 under the assumption that the Indian wind energy market will return to growth in the fourth quarter of the year. The wind energy industries in Europe and the Americas are anticipated to see a fair amount of newly installed capacity in the second half of 2017. Operating profit margin is expected to reach the upper end of the guided range of 8 to 10 percent of net sales, including an anticipated non-recurring one-time expense in the range of around 1% of annual operating profitability.
Online publication of Half-Year Report 2017, Media/Analyst conference and international webcast today, Friday, August 18, 2017
Gurit has published its Half-Year 2017 Report online at http://www.gurit.com/Investors/Reports
Management will discuss the results today in further detail at a joint media and analyst conference in Zurich at 09:00 a.m. CEST. The conference will take place at the Zurich Marriott Hotel, Neumuehlequai 42, CH-8006 Zurich. As always, the presentations will be held in English and will also be accessible as webcast at http://www.gurit.com/Investors/Webcasts where an archived version will later be available for download.
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