Business News
2013 first half-year results – Significant profitability improvement
Thursday 29. August 2013 - Sales 5.6% up at CHF 563.0 million
Operating result (EBIT) at CHF -3.8 million with CHF 24.7 million improvement vs. previous year
Cash at disposal increased by CHF 25.7 million
Order backlog up 8.3% vs. previous year
Sales for Bobst Group are 5.6% up at CHF 563.0 million for the first half year 2013. The improvement is due to a good order backlog at the beginning of the period and to increasing orders compared to the previous year. Operating result (EBIT) is close to break even with a CHF 24.7 million improvement compared to the first six months of 2012. The significant amelioration in the operating result (EBIT) is due to higher sales and the positive impact of the Group transformation program. Estimated sales for the full year are expected to be slightly higher than in the previous year. At current exchange rates and barring unforeseen circumstances, we expect to improve the full year’s results achieved in 2012.
During the first half of 2013, consolidated sales amounted to CHF 563.0 million, representing an increase of CHF 30.1 million, or +5.6%, compared with the same period in 2012. This evolution was due to an increase of CHF 27.4 million in volume and price along with a positive impact of CHF 2.7 million due to a favorable exchange rate evolution.
The operating loss amounted to CHF 3.8 million compared with a loss of CHF 28.5 million for the same period in 2012. The significant improvement in the operating result (EBIT) is due to higher sales and the positive impact of the Group transformation program.
The operating results (EBIT) of the three Business Units are as follows:
Sheet-fed: CHF -23.9 million (30 June 2012: CHF -40.8 million)
Web-fed: CHF +7.0 million (30 June 2012: CHF +6.8 million)
Services: CHF +14.1 million (30 June 2012: CHF +5.6 million)
The net loss amounted to CHF 13.0 million against a loss of CHF 35.1 million in 2012. The cash at disposal increased by CHF 25.7 million and amounted to CHF 331.1 million at the end of June 2013. On 23 July 2013 part of this cash was used to reimburse the CHF 100 million public bond reaching maturity and the balance remains available for future business needs.
The consolidated shareholders’ equity reached 29.2% of the total balance sheet, compared to 27.3% at the end of 2012. The increase is mainly due to the impact of the revised accounting standard IAS 19 on ‘Employee Benefits’.
Outlook for the second half of 2013
The Group is confident of experiencing a sales volume during the second half of 2013 comparable with the second half of the previous year, despite market conditions remaining volatile and a further deterioration of demand in Europe and the Middle East during the first half of 2013. Growth in Asia and the Americas compensate for this deterioration and order intake was up 7.6% by the end of July compared to the same period in 2012. This will lead to a good loading of all plants up to the end of the year.
Full year estimated sales are expected to be slightly higher than in the previous year. At current exchange rates and barring unforeseen circumstances, we expect to improve the full year’s results achieved in 2012. This takes into account the need to compensate for the non repetitive government grants received in 2012.
The Group continues to implement its strategy – which is to innovate, to increase its presence in growing markets, to increase the performance of its services and to improve its operational excellence – in order to achieve the communicated mid-term targets (by 2015 EBIT of 7% and 9-12% ROCE).