Press Release: Half-year results for 2018: Schweiter reports steep growth in revenues and profit

Schweiter Technologies / Half-year results for 2018: Schweiter reports

steep growth in revenues and profit. Processed and transmitted by

Nasdaq Corporate Solutions. The issuer is solely responsible for the

content of this announcement.

Steinhausen, 17 August, 2018 - Schweiter Technologies reported a strong

first half in 2018, posting a double-digit percentage increase in

revenues and profit. Group revenues were up by 11% to CHF 540.3 million

(+6% in local currencies), while acquisition-driven growth was close to

8%. EBITDA rose 11% to CHF 58.3 million. Despite some major increases in

raw material costs, the return on sales came to 10.8%, on level with the

previous year. Operating profit (EBIT) improved by 14% to CHF 44.2

million, while net profit from continuing operations rose to CHF 33.0

million. Cash holdings stood at CHF 178 million following a dividend

payout of about CHF 64 million.

Schweiter Technologies Group (in CHF m) H1 2018 H1 2017 + / -

Net revenues 540.3 485.6 +11%

EBITDA 58.3 52.6 +11%

as a % of net revenues 10.8% 10.8%

EBIT 44.2 38.9 +14%

Net income from continuing operations 33.0 30.9 +7%

Net income from discontinued operations - 98.6

Total net income 33.0 129.5

3A Composites revenues rose by 11% to CHF 540.3 million. EBITDA

increased by 10% to CHF 59.5 million, resulting in an EBITDA margin of

11.0%. EBIT came to CHF 45.4 million.

Beyond the acquisition-related growth, the main growth drivers were the

Architecture business in Asia and sustained, buoyant demand for display

products in Europe. The Architecture business performed well on the

whole - the significant rise in sales in Asia and the USA more than

offset the temporarily lower volumes in Europe and Australia in the

first quarter.

Athlone Extrusions, acquired in the second half of 2017, made a

significant contribution to the rise in revenues and profits.

The rest of the Display business in Europe also reported considerable

increases in revenues and profitability, outperforming the market trend.

Raw material price fluctuations, coupled with a corresponding temporary

downturn in demand, impacted further volume growth. The US Display

business built on the previous year's success, reporting revenue growth

yet again.

The Architecture business in Asia benefited from several major projects

in China plus an upturn in demand. Revenue growth in this region was in

the double-digit range. The US Architecture business posted significant

gains compared with the previous year, whereas the Architecture business

in Europe and Australia fell short of expectations especially in the

first quarter.

As expected, the Core Materials business got off to a moderate start in

the 2018 business year. Compared with the previous year, profitability

was impacted by weaker demand in the first quarter, rising raw material

costs in some cases, and price pressure from global OEMs. Sales in the

second quarter, however, were up again sharply in both the wind and the

non-wind sectors.

Business in the Transportation sector fell short of last year's strong

performance. Delivery delays for a major customer plus technical changes

to two projects led to lower sales than the previous year.

Outlook

The Group expects to turn in a good performance again in the second

half. In the Display and Architecture business, the Group anticipates

markets to remain stable but raw material prices to trend lower. The

Core Materials business is expected to post firm demand. Moreover, the

delayed orders in the Transportation sector are expected to be delivered

in the second half.

The complete financial statements for the first half of 2018 can be

found on our website www.schweiter.com

A media conference on the 2018 half-year results for analysts, media

representatives, and investors will take place at 11.00 a.m. today at

the Marriott Hotel, Neumühlequai 42, Zurich.

For further information please contact:

Martin Klöti, CFO

Tel. +41 41 757 77 00, Fax +41 41 757 70 01, martin.kloeti@schweiter.com

Please find the Media release in the PDF attached:

Media release (PDF): http://hugin.info/100347/R/2211072/861028.pdf

This announcement is distributed by Nasdaq Corporate Solutions on behalf

of Nasdaq Corporate Solutions clients.

The issuer of this announcement warrants that they are solely

responsible for the content, accuracy and originality of the information

contained therein.

Source: Schweiter Technologies via Globenewswire

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Schweiter Technologies

Neugasse 10 Horgen Switzerland

ISIN: CH0010754924;

http://www.schweiter.com

(END) Dow Jones Newswires

August 17, 2018 00:00 ET (04:00 GMT)