Feintool sales experience double-digit growth
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.
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%.
Financial figures at a glance
|Operating profit (EBIT)||37.8||45.9||21.4||14.6|
|Free cash flow||2.7||-10.4|
(comparison period per 12/31/2015)
|System Parts Segment||9.2||14.2||242.0||211.9|
|Orders received |
serial parts production
in CHF Mio.
in CHF Mio.
|System Parts Segment||10.8||16.5||122.7||105.4|
|Total Feintool-Group |
1 compared to the same period in the previous year
Media release as pdf
The automobile industry of tomorrow
The high points of the day included the presentation by Thomas Palme and the podium discussion that followed, which involved customers, professors and the Feintool management. Thomas Palme is an automobile industry expert from the Boston Consulting Group, and was therefore able to offer a look into the future challenges in the industry and the various scenarios.
Latest developments in fineblanking
Christian Maurer, Head of Materials Technology at Feintool, presented the newest research results about tungsten carbide for tools as well as hot fineblanking, and talked about the challenges involved in the production of bipolar plates. This research was carried out with RWTH Aachen University and ETH Zurich, which continually explore the boundaries of fineblanking. In addition, Feintool shared the experiences its Arbeitskreis Feinschneiden has gained with users, fineblanking producers, tool and materials manufacturers, and lubricant producers, with the aim of furthering research.
Spare parts elements available quickly
Feintool was also able to present a further development in the area of service: the new central warehouse close to Frankfurt. This warehouse for replacement part elements offers clients spare parts quickly at attractive prices and with fast delivery. Dr. Fabrice Seite, Head of Global Service, pointed to the advantages gained from FEINmonitoring and how the customer can benefit from the set-up of the global service team.
Competence center for press construction expanded
In a tour of the site in Jona, Switzerland, guests were given an insight into the expanded press competence center with its engineering services, streamlined flow line and testing facilities. The tour concluded with the presentation of a pioneering innovation.
Information about the Feintool Circle Meeting
Selected clients have the opportunity to take part in one of Feintool’s most important innovation events: the Circle Meeting. The event is generally held every two years and fosters joint exchange among fineblanking specialists from all over the world.