Press Release: Results for the first half of financial year 2014: Feintool continues its run of success, lifting sales by 19% and doubling its operating profit

   (MORE TO FOLLOW) Dow Jones Newswires

   August 19, 2014 00:30 ET (04:30 GMT)- - 12 30 AM EDT 08-19-14

-2 of 2- 19 Aug 2014 04:30:00 UTC  Press Release: Results for the first half of financial year 2014: Feintool continues its run of success, lifting sales by 19% and doubling its operating profit

Feintool International Holding AG / Results for the first half of financial year 2014: Feintool continues its run of success, lifting sales by 19% and doubling its operating profit . Processed and transmitted by Nasdaq OMX Corporate Solutions. The issuer is solely responsible for the content of this announcement.

By selling IMA Automation Amberg GmbH, Feintool has consequently pursued its long-term strategy of concentrating on fineblanking and forming, coupled with systematic internationalization and technical innovation. In the period from 1 January to 30 June 2014, it lifted net sales* by 19.3 percent year on year to CHF 245 million. In the same period, EBITDA increased by 52 percent to CHF 30.6 million, with operating profit rising by 141 percent to CHF 17.4 million and net income up by as much as 234 percent to CHF 12.0 million.

The global automotive industry was on good form in the first half of 2014. The North American market remained at the high prior-year level, while automotive production in Europe recovered slightly from the prior-year low and the Asian market continued to grow, despite of a slightly slower pace. Estimates indicate that global automotive production expanded by 3.8% year on year.

Encouraging business situation

Across the Group, sales were up 19.3% on the prior-year period to CHF 245 million. Orders received increased by 4.3% and the orders backlog by 4.2%. The gross margin climbed by 16.8%, from CHF 82.4 million to CHF 96.2 million, while the EBITDA margin was up from 9.8% to 12.5%. EBITDA increased by 52.1%, from CHF 20.1 million to CHF 30.6 million, with the operating margin (EBIT margin) doubling from 3.5% to 7.1%. Operating profit (EBIT) therefore showed a marked increase of CHF 10.2 million to CHF 17.4 million (+141%). This performance is the result of the systematic focus on fineblanking and forming, continued internationalization and improved productivity in all areas.

Cash flows after the change in net working capital increased significantly, rising from CHF 2.1 million to CHF 18.3 million. Capital expenditure amounted to CHF 24.2 million - again around a third higher than in the previous year. Free cash flow was therefore a negative CHF 5.9 million, compared with a negative CHF 16.2 million in the previous year.

All segments and regions positive

Orders received by the System Parts segment - representing releases for the next six months - rose by 5.7% to CHF 228.5 million. Sales increased by 20.2% to CHF 205.3 million. In local currency, they were up by as much as 24.4%. Europe accounted for 55.8% of sales and the USA for 33.5%, while Asia's share fell to 10.7% largely as a result of currency movements.

Orders received by the capital goods segment Fineblanking Technology declined by a marginal 2.5% to CHF 46.2 million. The orders backlog amounts to CHF 37.5 million, which equates to around six months' worth of work. Sales stabilized at CHF 47.1 million.

Optimistic outlook

After a successful first six months of financial year 2014, we are confirming the full-year forecasts made at the start of the year; this comes despite some significant negative exchange-rate effects for the Japanese Yen versus the Swiss franc.

Barring any possible impact of the latest political developments on our markets, we expect group sales of CHF 470 - 480 million. This figure has been adjusted merely to reflect the share of sales attributable to IMA Automation Amberg GmbH, which has now been sold. We are therefore in a position to fully offset the loss of IMA Automation sales solely through organic growth in our core business. On that basis, we also continue to expect an EBIT margin in the region of 7%. In the medium term, therefore, the growth momentum displayed by the System Parts segment in the first half of 2014 also constitutes the basis for a target sales figure of CHF 600 million and an EBIT margin of 8%.

*) All figures relate to continuing operations.

Brief Feintool profile

Feintool is the world's leading technology group specializing in the development of fineblanking systems and the production of ready-to-install fineblanking and forming components, notably for the automotive industry. The Group maintains close partnerships with its customers across the entire fineblanking and forming process - from component design, toolmaking and system construction through to large-scale series parts production. In addition to fineblanking, the Feintool Group also deploys other key processes such as precision forming and orbital technology, and is the world's only supplier of all-round solutions for the cost-effective manufacture of complex precision components.

With its locations in Europe, Japan, China and the USA, the Feintool Group is represented in the world's major automotive markets. Headquartered in Lyss, Switzerland, the Group has a headcount of just under 2000. At its various locations, Feintool provides training at any given time for about 80 young people in a number of skills (multiskilled mechanics, design engineers and commercial trades).

Overview Key financial figures

30.06.2014 30.06.2013 Figures in CHF Change in % in CHF m in CHF m Net sales(1) 19.3 244.9 205.4 EBITDA(1) 52.1 30.6 20.1 Operating profit (EBIT) (1) 141.3 17.4 7.2 Net income(1) 234.3 12.0 3.6 Free cash flow 36.5 -5.9 -16.2 Total assets (comparative period ended 31.12.2013) 6.7 425.8 398.9 Equity (comparative period ended 31.12.2013) 2.0 187.6 183.8 Sales(1) - Fineblanking Technology segment 0.3 47.1 47.0 - System Parts segment 20.2 205.3 170.8 Total Feintool Group, consolidated 19.3 244.9 205.4 Orders received(1) - Fineblanking Technology segment -2.5 46.2 47.4 - System Parts segment 5.7 228.5 216.1 Total Feintool Group, consolidated 4.3 269.4 258.4 Orders backlog(1) - Fineblanking Technology segment -19.2 37.5 46.4 - System Parts segment 8.8 199.8 183.5 Total Feintool Group, consolidated 4.2 230.7 221.4

1) Continuing operations

For the detailed report on the figures for the first half of 2014, please visit http://www.feintool.com/en/company/investor-relations.html

Feintool International Holding AG

Industriering 8

CH-3250 Lyss

Switzerland

Media spokesperson

Karin Labhart

Phone +41 (0)32 387 51 57

Mobile +41 (0)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/1849516/645576.pdf

This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX 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

HUG#1849516

--- End of Message ---

Feintool International Holding AG

Industriering 8 Lyss Schweiz

ISIN: CH0009320091;

http://www.feintool.com (END) Dow Jones Newswires

   August 19, 2014 00:30 ET (04:30 GMT)- - 12 30 AM EDT 08-19-14