Press Release: Schweiter Technologies: Figures for 2018

Schweiter Technologies / Schweiter Technologies: Figures for 2018.

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Growth in revenues amid challenging market conditions

Steinhausen, March 11, 2019 - Schweiter Technologies enjoyed a

successful 2018 business year in a market characterized by fluctuating

demand.

Net revenues rose to CHF 1,047.4 million (prior year: CHF 980.2 million),

equivalent to an increase of 7% (5% in local currencies). Organic growth

came to 2%. Owing to one-off positive effects the previous year (in

particular a high single-digit million windfall profit from the sale of

property), Group EBITDA amounted to CHF 111.0 million, just short of the

prior-year figure of CHF 114.4 million. EBIT came to CHF 82.2 million

(prior year: CHF 87.3 million). Athlone Extrusions, acquired in the

previous year, made a positive contribution to both revenues and

earnings. Net income from continuing operations declined to CHF 60.3

million (prior year: CHF 77.0 million) partly because of exchange rate

losses following exchange rate gains in the amount of CHF 11.0 million

in the previous year.

Cash and cash equivalents came to more than CHF 108 million, after

expenditure of about CHF 105 million for the Perspex acquisition and a

dividend distribution of about CHF 64 million. The Board of Directors

will propose paying a dividend of CHF 40 per bearer share at the General

Meeting on April 11, 2019.

The media conference will be held in Zurich at 11 a.m. today in the

Marriott Hotel, Neumühlequai 42.

The 2018 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

m) CHF) 2018 + / -

Net revenues 1'047.4 980.2 +7%

EBITDA 111.0 114.4 - 3%

as a % of net revenues 10.6% 11.7%

EBIT 82.2 87.3 - 6%

Net income from continuing operations 60.3 77.0 - 22%

Net income from discontinued

operations - 95.0

Total net income 60.3 172.0 - 65%

3A Composites

2018 was a challenging year divided into two halves. Whereas in the

first half the mood was upbeat and the prospects for growth were good,

in the second half sentiment slowly deteriorated especially in the

Display business (Polycasa) and in Core Materials. However, the

Architecture business in Asia and the Transportation business performed

strongly in the second half.

Display

Demand in the European Display market benefited in the first half from

the generally buoyant economic environment. In the second half, however,

it failed to match the previous year's high sales volume. Uncertainty

about the duration of the economic upturn compounded by expectations of

declining raw material prices resulted in substantial destocking among

customers, especially in the Clearsheet business, and consequently in

weaker sales of acrylic products.

Higher raw material prices than the previous year coupled with fiercer

competition impacted negatively on profitability. The launch of two new

Clearsheet product lines will broaden the product range and reinforce

our market position.The Display business in the US lost some of its

momentum in the second half and as a result did not manage to match the

previous year's strong showing.

Architecture

The construction sector in Europe remained stable at a high level, even

though performance varied in the individual markets. Whereas France,

Turkey, and Eastern Europe reported a dip in sales revenues, UK recorded

a gratifying revenue increase despite the uncertainty caused by Brexit.

Italy, too, posted a positive revenue trend. The core markets - Germany,

Switzerland, and Austria - matched the previous year's high revenues,

and sales in Scandinavia and Benelux also reached the prior-year level.

The Architecture business improved profitability on the back of

technological improvements and process optimization despite higher raw

material costs.

The US construction sector remained very buoyant. Since Alucobond(R) is

still the brand for premium aluminum composites that is most often

specified by architects, revenues and earnings grew by double-digit

figures.

The Architecture business in Asia also posted double-digit growth in

revenues and earnings over the whole year thanks to a very solid second

half. Growth was driven mainly by a large number of construction

projects in China, which more than made up for weaker demand in the

Middle East in the first half.

Demand is increasingly shifting to high-quality fire-retardant and

non-combustible cladding panels, a market in which 3A Composites is

ideally positioned. Uncertainty surrounding anticipated changes to fire

protection regulations led to a certain amount of restraint in some

markets.

Core Materials

The Core Materials business turned in a satisfactory performance over

the last three quarters after getting off to a slow start in the first

quarter.

Demand from wind energy customers continued to increase, though the

regional differences were considerable. Whereas demand firmed up

substantially especially in China, the Indian market continued to suffer

from muted demand. Europe and the US benefited in both the wind and the

non-wind sectors from a strong business climate and buoyant demand,

especially in the marine products market.

Profitability was held in check by higher raw material costs and by the

price pressures exerted by global OEMs. A number of measures - product

portfolio streamlining, steps to boost efficiency, and selective price

increases - were taken to enhance profitability.

Transportation

The Transportation business picked up strongly in the second half

following a subdued first half.

Revenues from lightweight bus and RV components as well as from train

front-ends posted double-digit growth versus the previous year. The

steep rise in revenues from these two product groups almost completely

compensated for the lower sales of interior products and

function-integrated sandwich systems for rail vehicles. Customer-related

delays in two major projects in Switzerland and in China resulted in

lower sales of flooring systems year-on-year.

Owing to long-term contractual obligations, there was a certain time lag

in passing on to customers the higher costs for raw materials and

prefabricated parts. The resulting additional costs, however, were

offset by rigorous implementation of measures designed to boost

efficiency.

Outlook

Despite the ongoing weakness of demand in the Display business for

acrylic products, Schweiter got off to a good start this year and

expects a positive business performance.

The economic outlook in the core markets of 3A Composites remains

favorable. However, the current trade dispute between the US and China

is causing some unease. In operational terms, the integration of the

Perspex companies acquired at the end of 2018 will durably strengthen

the Display business and make a positive contribution to revenues and

earnings.

The Architecture business should also continue to perform strongly on

the back of the buoyant construction sector in Europe, the US, and Asia.

The trend to non-combustible cladding panels coupled with the strong

market position of 3A Composites is a medium-term sales driver in the

Architecture business.

The Core Materials business looks set to benefit from the ongoing strong

demand in China, Europe, and the US. Important trends such as the

reduction of dependence on fossil fuels, worldwide efforts to cut back

CO2 emissions, measures to improve air quality especially in China,

along with technical innovations are driving medium-term growth in wind

energy as well as in the marine and automotive sectors.

The Transportation business has a good order backlog. The trend to

weight-saving solutions for buses, RVs and rail vehicles is a key factor

driving growth in this area.

Change in management

Jan Jenisch will not stand for re-election to the Board of Directors at

the Annual General Meeting on April 11, 2019, after five years as a

member of the Board of Directors due to time constraints. The Board of

Directors sincerely thanks Jan Jenisch for his valuable commitment in

recent years.

Georg Reif, Chief Technology Officer of 3A Composites and a member of

the Management of Schweiter Technologies, has decided to take early

retirement in the first half of 2019. The Board of Directors and

Management thank Georg Reif for his many years of successful service.

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/2238024/881816.pdf

This announcement is distributed by West Corporation on behalf of West

Corporation 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

March 11, 2019 01:00 ET (05:00 GMT)