14.08.2020 06:59:41
|
Press Release: Feintool: Significant decline in sales
The technology group Feintool recorded a significant decline in sales in
the first half of 2020 due to the COVID-19 pandemic. Compared to the
previous year, sales fell by 36 percent to CHF 212 million. This
resulted in an EBIT loss of CHF 18 million. Feintool is minimizing the
economic impact of the pandemic by implementing actions such as cost
cuts, postponing capital expenditures, short-time work schedules and
staffing reductions, and strengthening the group's liquidity. From
today's perspective, Feintool expects slightly higher sales and
significantly improved profitability in the second half of the year.
The Feintool Group generated net sales of CHF 212.3 million in the first
half of 2020. The System Parts segment's parts business shrank by 34.0%
to CHF 197.5 million in the reporting period. Sales in the Fineblanking
Technology segment fell by 47.0% to CHF 22.9 million. EBITDA fell by CHF
26.8 million, equal to three-quarters, down to CHF 8.0 million. Due to
the high level of depreciation and amortization, Feintool posted
negative operating earnings (EBIT) of CHF --17.4 million in the first
half of 2020. This corresponds to a decline of CHF 28.0 million. The
slump in sales - caused by the COVID-19 pandemic - had a significant
negative impact on both segments.
In the Fineblanking Technology segment, significantly lower sales
ultimately resulted in an operating loss (EBIT) of CHF 3.6 million. In
this context, Feintool continued to invest heavily in research and
development as an investment in the future. The System Parts segment
also suffered an EBIT loss in the first half of the year. Operating
earnings fell significantly by CHF 21.6 million to CHF --9.3 million.
Due to the considerable uncertainties that remain in place regarding the
extent of the pandemic and the high volatility of demand, it is
currently not possible to conclusively predict the overall impact on
sales and earnings for the full year 2020.
Crisis management measures
These developments are having a corresponding impact on Feintool's
planning and staffing levels. In this context, the group implemented
different measures depending on the region and country. In Europe, all
plants and key departments have been on short-time work schedules since
April. The size of the workforce will decline this year due to employee
turnover.
In the United States, a large part of the workforce was furloughed in
the spring in accordance with the labor market regulations in effect
there. As the plants are now seeing signs that the order situation is
recovering, a large portion of the workforce has been called back in to
work. In China, the number of employees is actually going to increase
due to the launch of new products.
In addition to HR measures, various actions were taken to further cut
costs. For example, selected capital expenditures were stopped or
postponed to a later date, available production capacities were used to
insource manufacturing processes, and the company also optimized its
inventories of raw materials and products. Cost management has led to
significant savings at all plants without jeopardizing the group's
ability to ship its products. In general, however, the same thing
applies in this regard as well: Feintool is facing different conditions
and market trends in the various regions and has introduced different
measures accordingly.
Looking toward the future with optimism
Despite the current uncertainties surrounding COVID-19 and the crisis in
the automotive market, Feintool is optimistic about the future. In
recent months, Feintool has stepped up its involvement in the megatrend
of e-mobility with its mainstay of electro lamination stamping in
Germany and China. This should put Feintool in the right position for
the expected development in this drive technology, enabling it to
benefit from the predicted global growth in e-mobility over the next few
years. For the hybrid drive market segment, which is also global, the
volume of orders, especially in Europe and China, has risen
significantly in recent months and is expected to increase further in
the second half of the year. In the medium to long term, significant
global growth is also expected in this market segment. We are also
encouraged by the fact that in the first six months we have won projects
for existing and new customers in the automotive industry in all regions
of the world and that significant new product start-ups in the areas of
fine blanking and forming are pending.
In general, due to our long-term and sustainable strategy, we expect our
position in the European, US and Asian markets to strengthen further,
especially in the coming months. In addition, despite all the measures
taken to contain the COVID-19 crisis, we are continuing to pursue
forward-looking development projects. For example, we believe the
production of bipolar plates for fuel cells holds great potential.
We are confident and optimistic that we are well prepared for the
challenges that lie ahead in the coming months. Feintool has healthy
liquidity and is financially well secured. We have concluded a new
credit agreement with our principal banks in Switzerland and Germany
which will ensure our operational and financial flexibility in the
current challenging environment.
Thanks to its broad technological base and numerous attractive projects,
Feintool can now take advantage of the opportunities arising in the
future from new drive technologies for vehicles. This area of focus is
key to our future strategic development.
Changes to the executive board
Feintool CFO Thomas Bögli will retire next year and leave the
company at the Annual General Meeting in April 2021. His successor will
be Samuel Künzli. The 35-year-old, who is originally from Eastern
Switzerland, holds a Swiss Federal diploma in auditing and most recently
worked for Stadler in Bussnang as Swiss Division CFO.
Guidance
Due to the considerable uncertainties that remain in place regarding the
extent of the pandemic and given the high volatility of demand, it is
not currently possible to conclusively predict the overall impact on
sales and earnings for the full year 2020. From today's perspective,
Feintool expects slightly higher sales in the second half of
the year and significantly improved profitability thanks to the
cost-cutting measures the company has implemented.
Overview of key financial indicators
January 1 to June January 1 to June Change in
30, 2020 30, 2019 Change local
currency in
in CHF million in CHF million in % %
--------------------------- ----------------- ----------------- ------ -----------
Net sales Feintool Group 212.3 331.9 -36 -33.3
--------------------------- ----------------- ----------------- ------ -----------
-- Fineblanking Technology
segment 22.9 43.2 -47 -46.8
--------------------------- ----------------- ----------------- ------ -----------
-- System Parts segment 197.5 299.4 -34 -31
--------------------------- ----------------- ----------------- ------ -----------
EBITDA 8 34.8 -77 -75
--------------------------- ----------------- ----------------- ------ -----------
Operating earnings (EBIT) -17.4 10.5 -265.3 -269.2
--------------------------- ----------------- ----------------- ------ -----------
-- Fineblanking Technology
segment -3.6 1.2 -389.3 -389.7
--------------------------- ----------------- ----------------- ------ -----------
-- System Parts segment -9.3 12.3 -175.8 -179.2
--------------------------- ----------------- ----------------- ------ -----------
Group result -17.5 4.7 -476.1 -509.1
--------------------------- ----------------- ----------------- ------ -----------
Free Cashflow -19 -4.9 -287.8
--------------------------- ----------------- ----------------- ------ -----------
Orders received -- capital
goods 11.8 27 -56.2 -56
--------------------------- ----------------- ----------------- ------ -----------
Orders backlog -- capital
goods 12.3 23.8 -48.2 -48.1
--------------------------- ----------------- ----------------- ------ -----------
Change in
30.06.2020 31.12.2019 Change local
currency in
in CHF million in CHF million in % %
--------------------------- ----------------- ----------------- ------ -----------
Total assets 686.1 706.3 -2.9
--------------------------- ----------------- ----------------- ------ -----------
Shareholder's equity 282.8 309.9 -8.7
--------------------------- ----------------- ----------------- ------ -----------
Net debt 162.5 140.8 15.4
--------------------------- ----------------- ----------------- ------ -----------
Employees 2 363 2 641 -10.5
--------------------------- ----------------- ----------------- ------ -----------
(MORE TO FOLLOW) Dow Jones Newswires
August 14, 2020 01:00 ET (05:00 GMT)
Wenn Sie mehr über das Thema Aktien erfahren wollen, finden Sie in unserem Ratgeber viele interessante Artikel dazu!
Jetzt informieren!