Press Release: Feintool Group: financial year 2018 - Feintool increases net sales and profits

The technology company can once again look back on a positive financial

year: Net sales grew by 11 percent year on year in 2018 to reach CHF 680

million, while operating earnings (EBIT) amount to CHF 48 million. The

operating margin stands at 7 percent. The group's net result increased

by 9.9 percent to more than CHF 30 million.

Organic increase in sales

The global automotive industry continued to grow in 2018 up to and

including the third quarter. Feintool benefited from this positive

industry trend and grew, despite challenging general conditions,

outpacing the market in every relevant region.

The Feintool Group generated net sales of CHF 679.6 million in the 2018

financial year, which corresponds to an increase of 11.0%. Adjusted for

currency and acquisition effects, the company achieved growth of 6.1%.

Of the corporate segments, System Parts, in which Feintool is globally

active with the high-volume production of precision fineblanked, formed

and stamped components, accounted for the largest share of sales. In the

year under review, the segment grew in local currency by 5.6% to CHF

586.9 million, thus generating 86.0% of the consolidated sales. This

increase is primarily due to greater sales volumes of new products in

Europe year on year, as well as the acquisition of the forming plant in

China and those operating in the field of electro sheet stamping.

In the Fineblanking Technology segment, in which Feintool provides

comprehensive technological solutions for fineblanking, net sales

totaled CHF 106.9 million, which equates to a significant increase of

16.9%. Business with fineblanking presses and tools has developed very

positively.

EBIT rises again

All segments and regions made a positive contribution to the operating

profit (EBIT) this year as well. The Feintool Group generated operating

profit of CHF 47.5 million, which corresponds to a slight increase of

1.2% in local currency.

The operating business achieved an EBIT margin of 7.0%.

The System Parts segment achieved an EBIT of CHF 43.5 million and an

EBIT margin of 7.4%. The decline in sales in the fourth quarter led to

under-utilization of production at certain plants. Moreover, some plants

are preparing for new products, which resulted in considerable ramp-up

costs.

In the Fineblanking Technology segment's investment goods business,

Feintool generated an EBIT of CHF 9.8 million. The margin increased

significantly year on year to 9.2%. The main reason for this development

is the considerably higher net sales. Research expenses were similar to

the previous year, coming in at CHF 4.8 million. Activities in this area

are continually being intensified as an investment in the future.

Group result has risen

Feintool generated a consolidated Group result of CHF 30.5 million

overall, which equates to a margin of 4.5%.

Numerous orders and expected releases

Expected releases among our customers in the high-volume parts segment

amount to CHF 286.1 million over the next six months. Nominations for

new products to the tune of CHF 55 million promise positive development

of the high-volume parts segment in the medium term.

Incoming orders in the Fineblanking Technology segment rose again --

even compared to the high level of last year -- by 1.7% to reach CHF

102.3 million, of which CHF 14.6 million were internal orders coming

from the System Parts segment and CHF 87.7 million came from third

parties. The order backlog fell by 17.9% to CHF 37.3 million. The order

inventory amounts to six to eight months for the long-term press

business. As a result, press manufacturing is in a good starting

position for the 2019 financial year.

Dividend distribution as planned in the previous year

In light of this annual result as well as the consistent payout policy,

the Board of Directors will propose to the General Meeting on 30 April

2019, that it pay a dividend of CHF 2.00 per Feintool share from capital

contributions.

Investments in increasing market shares

Business with the newly integrated electro sheet stamping technology has

likewise developed encouragingly. Due to the long-term rising demand for

efficient electric motors, especially in the field of mobility, the

investment in the acquisition of Stanz- und LaserTechnik Jessen GmbH has

proven to be the right move. In combination with the fineblanking and

forming technologies, the group is very well positioned and ready to

gain further market shares. After completing the first electro sheet

stamping orders in Europe in 2019, the new technology will subsequently

be rolled out in Asia and North America to supply the growth market of

electromobility worldwide.

Outlook

Feintool expects the automotive market to grow in the medium and long

term. Due to economic and political uncertainties, there is a

possibility of a short-term drop in sales in individual markets. Under

these general conditions, Feintool expects net sales of between CHF 690

and 730 million for the 2019 financial year, as well as a slightly

higher EBIT than in 2018.

Overview of key financial indicators

Change in

2018 2017 Change local currency

in CHF million in CHF million in % in %

----------------------------------- --------------- --------------- ------ ---------------

Net revenue of the Feintool Group 679.6 612.3 11.0 9.6

----------------------------------- --------------- --------------- ------ ---------------

Fineblanking Technology segment 106.9 91.4 16.9 16.9

----------------------------------- --------------- --------------- ------ ---------------

System Parts segment 586.9 547.4 7.2 5.6

----------------------------------- --------------- --------------- ------ ---------------

Earnings before interest, taxes,

depreciation, and amortization

(EBITDA) 89.7 83.2 7.8 6.3

----------------------------------- --------------- --------------- ------ ---------------

Earnings before interest and taxes

(EBIT) 47.5 46.3 2.6 1.2

----------------------------------- --------------- --------------- ------ ---------------

Fineblanking Technology segment 9.8 4.0 147.4 147.2

----------------------------------- --------------- --------------- ------ ---------------

System Parts segment 43.5 52.6 -17.4 -18.7

----------------------------------- --------------- --------------- ------ ---------------

Group result 30.5 27.7 9.9 9.6

----------------------------------- --------------- --------------- ------ ---------------

Total assets 705.3 600.4 17.5

----------------------------------- --------------- --------------- ------ ---------------

Shareholder's equity 320.8 255.2 25.7

----------------------------------- --------------- --------------- ------ ---------------

Net debt 147.9 81.9 80.6

----------------------------------- --------------- --------------- ------ ---------------

Expected releases of high-volume

parts production

(System Parts segment) 286.1 264.0 8.4 10.2

----------------------------------- --------------- --------------- ------ ---------------

Orders received from third parties

(investment goods)

(Fineblanking Technology segment) 87.7 82.7 6.1 6.0

----------------------------------- --------------- --------------- ------ ---------------

Order backlog for third parties

(investment goods) (Fineblanking

Technology segment) 31.0 38.3 -19.0 -19.0

----------------------------------- --------------- --------------- ------ ---------------

Employees 2,697 2,485 8.5

----------------------------------- --------------- --------------- ------ ---------------

Trainees 82 81 1.2

----------------------------------- --------------- --------------- ------ ---------------

All the information on the Feintool annual results for 2018 can

be found in the 2018 Annual Report, which is available online at

http://www.feintool.com/unternehmen/investor-relations.html http://www.feintool.com/unternehmen/investor-relations.html

------------------------------------------------------------------------------------------------------------------------

Feintool International Holding AG

Industriering 8

3250 Lyss

Switzerland

Media Spokesperson

Karin Labhart

Telephone +41 32 387 51 57

Mobile +41 79 609 22 02

karin.labhart@feintool.com

https://www.globenewswire.com/Tracker?data=jpgoEY6TvlzNe2gGb8Qt8duSWmZLnxTguyQiYNY2lvg_DznOT8DN4_KHqqR3AeyC80UyLGpbWkEQvjniFG1HX2Vf7G0MFY6RiLrvj_z-1PxEBkSAe1GLO6cdAgjC3uVx

www.feintool.com

The press release can be downloaded from the following link:

-- Press Release (PDF)

https://ml-eu.globenewswire.com/Resource/Download/b3ae8488-119b-473f-a238-6425317288d6

(END) Dow Jones Newswires

March 05, 2019 01:00 ET (06:00 GMT)