Press Release: First semester results of financial year 2018: Feintool's net sales and EBIT grow at double-digit rates

Feintool International Holding AG / First semester results of financial

year 2018: Feintool's net sales and EBIT grow at double-digit rates.

Processed and transmitted by Nasdaq Corporate Solutions. The issuer is

solely responsible for the content of this announcement.

In the first half of 2018, the technology company increased its net

sales by 13.6 percent year-on-year to CHF 337.3 million. In local

currency, organic growth amounts to 7.3%. The operating earnings (EBIT)

in the same period increased by 14.4% to CHF 25.7 million. Feintool also

expects to see positive business development for the year as a whole.

For Feintool, the long-term strategy, with its focus on fineblanking and

forming combined with consistent internationalization and technical

innovation, has once again proven its worth. In addition, Feintool is

investing in the growth market of electrification and expanding its

strategic business fields into the market for electric motor components.

Dynamic market environment

The growth of the global automotive industry continued in 2018.

According to estimates (1), global car production increased by 2.5%

year-on-year. Feintool benefited from this positive industry trend and

grew - despite challenging general conditions -, outpacing the market in

every relevant region.

Positive business development

During the period under review, the Feintool Group generated net sales

of CHF 337.3 million, which corresponds to an increase of 13.6%.

Adjusted for currency and acquisition effects, the company achieved

growth of 7.3%. EBITDA increased by CHF 5.4 million to 45.4 million in

the first six months of the year and operating earnings (EBIT) by 14.4%

- or by 10.9% in local currency - to CHF 25.7 million. This corresponds

to an unchanged EBIT margin of 7.6 %. The Group result amounted to CHF

16.9 million (previous year CHF 14.0 million) and thus increased -

adjusted for currency effects - by 19.8%.

1 LMC Automotive.

Parts production a growth driver both in Europe and increasingly China

Of all the corporate divisions, the System Parts segment, in which

Feintool is globally active with the high-volume production of precision

fineblanked and formed components, accounted for the largest share of

sales. During the first half of the year, the segment grew by 7.3% to

CHF 295.2 million in local currency, generating 87.3% of the

consolidated sales.

Once again, all regions have grown. Europe (+ 6.6% in local currency) is

driven by increased sales volumes of new products. Asia (+ 27.1% in

local currency) is benefiting on the one hand from the acquisition in

the previous year, and on the other from steadily increasing releases

from our customers. Despite a stagnating market, Feintool was still able

to grow by 2.2% (in local currency) in North America. However, part of

this increase is due to higher steel prices. Europe contributed 57.7% to

sales in the parts area, while the US share was 31.1%, and that of Asia

11.2%.

In the Fineblanking Technology segment, in which Feintool offers

comprehensive technological solutions for fineblanking, net sales

increased by an encouraging 43.7% to CHF 53.3 million. With excellent

sales of press systems, the segment posted its highest net sales and

number of new orders in eight years in the first half of 2018.

Optimistic outlook

Feintool expects the positive business development to continue in the

second half of financial year 2018, albeit in a market environment

characterized by political uncertainties and by the waste gas measuring

cycle. Overall - taking into account the acquisition of Stanz- und

LaserTechnik Jessen GmbH - we expect to see net sales of between CHF 670

million and CHF 700 million and an EBIT margin similar to that of the

first half of 2018.

Overview of key financial indicators

Change Jan. 1 - Jan. 1 -

in local Change June 30, June 30,

currency in 2018 CHF 2017 CHF

in %(1) %(1) millions millions

Net revenue 10.3 13.6 337.3 296.8

EBITDA 9.9 13.4 45.4 40.0

Operating earnings (EBIT) 10.9 14.4 25.7 22.5

Group result 19.8 20.3 16.9 14.0

Free cash flow -25.2 -47.4

Total assets

(comparison period ending Dec. 31, 2017) 6.4 635.9 597.4

Shareholder's equity

(comparison period ending Dec. 31, 2017) 5.0 266.9 255.2

Net sales(1)

- Fineblanking Technology segment 43.7 43.7 53.3 37.1

- System Parts segment 7.3 11.0 295.2 266.0

Consolidated Feintool Group total 10.3 13.6 337.3 296.8

Orders received investment goods 17.4 17.4 57.9 49.3

Order backlog investment goods -0.5 0.0 47.2 47.2

Expected releases - high-volume parts

production 18.7 24.0 295.9 238.6

Change in Apr. 1 - June Apr. 1 - June

local currency 30, 2018 CHF 30, 2018 CHF

in %(1) Change in %(1) millions millions

Net sales

- Fineblanking

Technology

segment 53.7 53.9 30.7 20.0

- System Parts

segment 7.8 12.6 150.3 133.4

Consolidated

Feintool Group

total 11.8 16.0 176.0 151.8

Orders received

investment

goods 27.0 27.4 28.6 22.4

(1) compared to the same period in the previous year

All detailed information on the 2018 half-year report can be found at

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

Feintool in brief

Feintool is an internationally active technology and market leader in

the field of fineblanking as well as a global provider of high-quality

and cost-effective fineblanked and formed components As an innovation

driver, Feintool consistently pushes the boundaries of fineblanking and

develops smart solutions for its customers' ideas with two possibilities

for implementation: On the one hand, the delivery of fineblanking

systems and innovative tools and, on the other hand, the complete

production of precise fineblanked and formed components in high outputs

for demanding industrial applications. Feintool covers the entire

process chain. The processes used by Feintool support the trends in the

automobile industry. Thus, Feintool is a project and development partner

in the field of lightweight construction, module variations, and

alternative drive concepts such as hybrid and electric.

The company, founded in 1959 and headquartered in Lyss, Switzerland, has

its own production plants and technology centres in Europe, the United

States, China, and Japan, so it is always near its customers. Around

2,600 employees and 70 trainees work worldwide on new solutions and

create key advantages for Feintool customers.

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

www.feintool.com

The press release can be downloaded from the following link:

Press Release (PDF): http://hugin.info/100443/R/2212088/862340.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: Feintool International Holding AG via Globenewswire

--- End of Message ---

Feintool International Holding AG

Industriering 8 Lyss Switzerland

ISIN: CH0009320091;

http://www.feintool.com

(END) Dow Jones Newswires

August 22, 2018 01:00 ET (05:00 GMT)