Feintool - Sales and earnings both up again at Feintool

Sales and earnings both up again at Feintool

04.03.2013

Feintool Group results for financial year 2012

Feintool's positive business performance continued in the 2012 financial year: sales improved for the third consecutive year, rising 15 percent compared with the previous year to CHF 427 million; operating profit increased by a quarter to CHF 23.4 million. All segments and regions contributed to the positive result.    

   

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) and a third factory in Atsugi (Japan). In 2012 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, they represent solid yearly growth estimated at 3% for the period up to 2025. This regional presence in strong markets protects Feintool from exchange rate fluctuations and offers sound growth prospects. The strategy of specialization, internationalization and investment in highly productive facilities started to bear fruit in 2012: Feintool concluded framework agreements on new product programmes to a value of around CHF 100 million in yearly sales. These will result in a further increase in sales over the next few years if the economic situation remains stable.   

   

Parts production and automation technology boost sales   

In financial year 2012, Feintool generated sales of CHF 427.0 million (+15.2%). The short-term series parts business rose by 27.6%, of which a third was attributable to organic growth and two-thirds to growth through acquisitions (purchase of precision forming specialist Herzing + Schroth). In the capital goods business, Fineblanking Technology saw a 15.5% decline in sales, mainly owing to fewer orders within the Feintool Group. The Automation segment posted a 22.6% increase in sales, taking the disposal of the factory in Berlin into account.   

   

Nuanced picture for orders received      

Global growth in the automotive industry was sustained in 2012, with marked differences between the regional markets. Although sales rose in Asia and the USA, they declined in Europe, particularly in France, Italy and Spain. As a result of these trends, Feintool's volume of orders received fell by 4.5% to CHF 402.3 million overall. In the series parts business, order intake increased by 14.1%, mainly because of the acquisition of Herzing + Schroth, whereas in the two capital goods segments orders received were down by 6.2% in Fineblanking Technology and by a third in Automation.    

    

Good earnings situation   

All segments and regions generated a positive result in the year under review. The Feintool Group boosted its EBIT by nearly a quarter to CHF 23.4 million. The EBIT margin was 5.5%.    

The series parts business of the System Parts segment posted an EBIT of CHF 12.1 million. This result includes startup costs for the new production facility in China, high up-front costs in the single digit millions for product launches in the USA and Europe, and the negative second-half operating result of Herzing + Schroth, which was acquired on 1 June 2012. The latter was caused by the adverse effects of the first-time consolidation as well as a loss of sales from a French customer.     

The press business of the Fineblanking Technology segment generated a result of CHF 8.2 million thanks to good capacity utilization. In the Automation segment, IMA Automation in Amberg (Germany) posted a record result of CHF 7.1 million. In addition, the sale of IMA Automation in Berlin (Germany) and a small property in Lyss (Switzerland) led to a one-off contribution to the result of CHF 2.0 million, after deducting the costs of the Herzing + Schroth acquisition.   

   

Orders backlog remains high   

The total orders backlog came to CHF 191.5 million. Of this, CHF 138.1 million was attributable to the System Parts segment thanks to the acquisition of Herzing + Schroth. At CHF 45.6 million and CHF 25.8 million respectively, the Fineblanking Technology press business and the Automation segment have enough orders to last well into the second half of 2013.     

   

Solid financial position   

Following the acquisition of Herzing + Schroth, the equity ratio was 34.8 percent. As expected, this was lower than in the previous year because of the higher balance sheet total. Net debt rose to CHF 75.3 million as a result of the acquisition. In summer 2012, new funding of CHF 120 million was agreed with eight banks for five years, thus safeguarding organic and acquisition-based growth over the next few years, and replacing an existing credit line dating from 2009.     

   

Dividend payment planned   

Given the Feintool Group’s aforementioned positive performance as well as its stable financial position, the Board of Directors has decided to propose to the Annual General Meeting on 16 April 2013 that it approves a dividend of CHF 5 per Feintool share.    

   

Optimistic outlook    

On the whole, we expect global business in the relevant sectors to remain stable. Despite the uncertainties in Europe we are therefore cautiously optimistic for the 2013 financial year. We are forecasting Group sales of approximately CHF 480 million and – due to further up-front investment in new products – an operating margin similar to that achieved in 2012.       

   

Feintool: profile in brief   

Feintool is the world's leading technology group specializing in the development of fineblanking systems and the production of ready-to-install fineblanking and forming components, notably for the automotive industry. The Group maintains close partnerships with its customers across the entire fineblanking and forming process – from component design, toolmaking and system construction through to large-scale series parts production. In addition to fineblanking, Feintool Group also deploys other key processes such as precision forming and orbital technology, and is the world's only supplier of all-round solutions for the cost-effective manufacture of complex precision components. A further brand in its portfolio is IMA Automation – a leading manufacturer of automated assembly systems.    

With its locations in Europe, Japan, China and the USA, Feintool Group is represented in the world's major automotive markets. Headquartered in Lyss, Switzerland, the Group has a headcount of just under 2000. At its various locations, Feintool provides training at any given time for about 100 young people in a number of skills (multiskilled mechanics, design engineers and commercial trades).    

   

Key financial figures in brief

Figures in CHF	FY 2012 in CHF m	FY 2011* in CHF m	Change  in %
Sales Feintool Group	427.0	370.7	15.2
Fineblanking Technology segment	99.4	117.5	-15.5
System Parts segment	296.3	232.3	27.6
Automation segment	49.4	51.1	-3.2
Earnings before interest, tax, depreciation and amortization (EBITDA)	44.4	34.4	29.1
Operating profit (EBIT)	23.4	18.9	23.7
Fineblanking Technology segment	8.2	10.9	-24.4
System Parts segment	12.1	13.8	-12.5
Automation segment	7.1	4.4	61.1
Net income from continuing operations	12.8	15.4	-17.0
Total assets	386.6	326.2	18.5
Equity	134.4	129.3	3.9
Net debt	75.3	36.3	-107.4
Orders received Feintool Group	402.3	421.4	-4.5
Fineblanking Technology segment	105.2	112.2	-6.2
System Parts segment	284.0	248.9	14.1
Automation segment	39.6	74.9	-47.1
Orders backlog Feintool Group	191.5	186.2	2.8
Fineblanking Technology segment	45.6	42.5	7.5
System Parts segment	138.1	105.1	31.4
Automation segment	25.8	46.9	-45.0

    

*Due to short year 2011 not confirmed   

    

For detailed information on Feintool's results for 2012, please visit http://www.feintool.com/en/company/investor-relations.html.   

 

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