Press Release: Schweiter Technologies: Figures for 2017

Schweiter Technologies / Schweiter Technologies: Figures for 2017.

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Growth in revenues and a sharp rise in net income

Horgen, March 9, 2018 - Schweiter Technologies generated another year of

revenue growth and a sharp rise in net income for the 2017 financial

year.

Net revenue from continuing operations increased 7% (+6% in local

currencies) to CHF 980.2 million (prior year: CHF 917.5 million).

Organic growth was 4%. Group EBITDA grew to CHF 114.4 million (prior

year: CHF 112.3 million), equivalent to 11.7% of revenue. EBIT improved

to CHF 87.3 million (prior year: CHF 85.6 million) and net income from

continuing operations increased 27% to CHF 77.0 million (prior year: CHF

60.5 million) in part due to favourable exchange rate gains. Athlone

Extrusions, acquired as at 31 July 2017, made a positive contribution to

revenue and earnings. Overall net income came in at CHF 172.0 million

(prior year: CHF 70.6 million) and includes a gain of CHF 95.0 million

from discontinued operations.

Cash and cash equivalents exceeded CHF 230 million even after a dividend

distribution of approximately CHF 57 million. The Board of Directors

will propose a special dividend of CHF 5 per share in addition to the

ordinary dividend of CHF 40 per share at the General Meeting on April

13, 2018. This results in a proposed total dividend pay-out of CHF 45

per share. In addition, the Board of Directors will propose the transfer

of the company's registered office to Steinhausen.

The media conference is being held in Zurich at 11.00 a.m. today at the

Marriott Hotel, Neumühlequai 42.

The 2017 Annual Report and the investor presentation can be downloaded

from:

http://www.schweiter.ch/s1a200/investoren/geschaftsberichte-prasentationen.html

Key figures

Schweiter Technologies Group (in CHF 2017 2016

millions) + / -

Net sales 980.2 917.5 7%

EBITDA 114.4 112.3 2%

in % of net revenues 11.7% 12.2%

EBIT 87.3 85.6 2%

Net income from continuing operations 77.0 60.5 27%

Net income from discontinued

operations 95.0 10.2

Total net income 172.0 70.6 143%

3A Composites

After a strong 2016, 3A Composites generated another robust financial

performance in 2017. The Display business in Europe and the US

registered strong growth and outperformed the overall economy. Revenues

of the Architecture business in the US grew by double digit percentage.

The Architecture business in Europe and Asia maintained good momentum on

the back of a successful 2016.

The Core Materials business experienced weakened demand in the core

markets of China and India in the second half of the year. While the

Non-Wind business - mainly the US Marine market - reported strong growth,

it was not sufficient to compensate for the decline in revenues in the

Wind business.

The Transportation business once again posted healthy growth, generating

a sharp increase in profitability.

Display

Revenues in Europe once again outpaced the overall economic growth. The

business benefitted from its broad product portfolio and its intensive

marketing efforts which resulted in revenue growth especially in the

areas of foam sheets, clear sheets, paper board and balsa-based

products. The market position for aluminium composite materials remained

strong. Sales rose significantly in Western Central Europe - Germany,

Austria and Switzerland - and also notably in Italy, the Czech Republic

and Poland. By contrast, the United Kingdom and France saw consolidation

of business volumes following sharp revenue increases in the prior year.

The acquisition of Athlone Extrusions, successfully completed at the end

of July, added attractive multilayer plastic substrates to the product

range.

The US Display business benefited from widespread modernization by

prominent retail chains. Revenues were sharply ahead of prior year.

Architecture

The construction sector in Europe continued to enjoy strong, sustained

growth, benefiting from historically low European interest rates. Core

markets of Germany, Switzerland and Austria registered healthy growth on

the back of a strong prior year. Revenues in the United Kingdom rose

significantly despite uncertainties surrounding Brexit. Southern and

Eastern Europe experienced volume consolidation, while revenues grew in

Scandinavia and the Benelux countries.

US construction activity remained strong. Thanks to its strong market

position and a focused marketing approach, revenues in the US increased

by double-digit percentage.

In Asia, the business posted modest overall growth compared to prior

year. Revenue growth in China more than compensated for a decline in

revenues in the Asia-Pacific region. In the Middle East, business

improved marginally despite a challenging political landscape and

overall market weakness due to low oil prices. India experienced a

strong shift in demand to fire-retardant materials.

A number of building fires in recent years has increased awareness of

high-quality fire-retardant and non-combustible cladding panels. With

more than 25 years' experience in this field, 3A Composites is ideally

positioned to benefit from an increased need for building safety and

more stringent fire safety regulations.

Core Materials

The Core Materials business could not quite repeat the strong

performance of prior year. Growth in the Wind business was affected by

weaker demand in the core markets of China and India in the second half

of the year.

Despite the challenging market conditions, the business was still able

to increase its market share in the Wind business. The breadth of its

product range - from products based on PET and PVC foam to balsa -

enabled it to further expand its position as preferred supplier for

customers in the Wind business.

The Non-Wind business benefited from strong demand for marine products

in the US. The business's share of the global marine market increased

once more in the 2017 financial year. Several weight-reducing solutions

in the automotive field achieved market readiness, contributing to

growth in the Non-Wind business.

The PET production facility in the US which commenced operations last

year, combined with the continuing shift from PVC to PET core materials,

produced positive effects on revenues and earnings.

Transportation

The Transportation business experienced another successful year. The

Rail vehicles business posted substantial increases in revenues and

earnings, with major contributions coming from interior products and

floor systems.

The lightweight bus components business performed in line with

expectations and on par with prior year's strong results.

Implementation of measures to improve quality and efficiency in the two

production facilities in Switzerland and Poland combined with optimized

procurement and project-management processes resulted in significant

cost savings.

Outlook

3A Composites has made a successful start to the new financial year and

prospects for the future remain solid. Though demand in the Wind

business is expected to remain somewhat softer during the first half of

the year, its prospects in the medium to long term are still healthy.

The Display and Architecture businesses should benefit from generally

positive economic prospects, and from the persistently high level of

construction activity in the core markets of 3A Composites. The

Transportation business is building upon a solid order backlog and is

benefiting from a sustained trend towards weight-saving solutions in the

transportation sector. The integration of Athlone Extrusions, acquired

in 2017, will further strengthen the Display business and make a

positive contribution to its success.

For further information please contact:

Martin Klöti, CFO

Tel. +41 44 718 33 03, Fax +41 44 718 34 51, martin.kloeti@schweiter.com

Media release (PDF): http://hugin.info/100347/R/2174635/838621.pdf

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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

March 09, 2018 00:00 ET (05:00 GMT)