Results after 9 months / Q3 2016: Feintool generates double-digit sales growth

Feintool International Holding AG / Results after 9 months / Q3 2016: Feintool generates double-digit sales growth . Processed and transmitted by Nasdaq Corporate Solutions. The issuer is solely responsible for the content of this announcement.

In the first nine months of financial year 2016, Feintool increased its sales by 11.4 per cent to CHF 416.9 million compared to the previous year. The high-volume parts segment increased its sales by 12.2 per cent, while the investment goods business grew by 5.2 per cent.

The worldwide automotive market was robust in the third quarter. Although individual manufacturers - unlike in the previous two years - closed for the summer months, Feintool benefited from nominations secured in recent years. These are now having a positive impact on sales.

Increased sales in the third quarter
In the third quarter of 2016, group sales were up 6.1% compared to the previous year (in local currency +4.4%), while sales remained stable compared with the previous quarter. The System Parts segment, which is active in high-volume parts production, increased its sales by 8.4% (in local currency +6.5%) to CHF 121.4 million. This positive result was attributable to new orders and the consistently buoyant automotive market. However, some customers scaled down their production during the holiday months. Growth was mainly driven by the European and Asian locations, while business in the USA reached the previous year's level. The Fineblanking Technology segment, which covers the investment goods sector, generated sales of CHF 22.4 million, including internal business, and is thus 5.5% below the previous year's figure.

Overall, the Feintool Group's sales rose year on year by 11.4% (in local currency +7.9%) to CHF 416.9 million in the first nine months of 2016. 87% of third-party sales were generated in the System Parts segment.

Delayed order intake in the investment goods business
In the first nine months of the year under review, order intake fell by 12.9% to CHF 59.2 million year on year. The customers' reluctance to invest has increased in recent months, and has noticeably delayed new business.

Order backlog of six months
The order backlog in the investment goods business declined year on year as well as compared to 31 December 2015. However, Feintool still has an order backlog of around six months in the Fineblanking Technology segment.

Expected releases in the high-volume parts business remain encouraging 
Feintool's customers are planning releases amounting to CHF 223.1 million in the coming six months. This figure is 5.6% higher than in the previous year and has hardly changed compared to previous quarters.

Optimistic outlook
Assuming economically and politically stable conditions in the relevant markets for us, Feintool expects a 10% increase in sales to CHF 555 million and an EBIT margin of 7.5%.

Short profile Feintool
Founded in 1959, this technology company is a world leader in the development of fineblanking systems and in the production of pre-finished fineblanked and formed components for demanding industries, particularly the automotive industry. Feintool maintains a close working relationship with its customers throughout the entire fineblanking process - from component and tool design, to system engineering and large-scale component production.
With its combination of fineblanking and cold forming, Feintool is the only full-service provider for the efficient production of complex precision components in large quantities. Feintool's processes support the current automotive trends toward lighter vehicles, improved transmissions and module types. As a driver of innovation, Feintool consistently pushes the boundaries of fineblanking.
With locations in Europe, Japan, China and the US, Feintool is represented in the most important automotive markets in the world. Headquartered in Lyss, Switzerland, Feintool achieves revenues of roughly half a billion Swiss francs and employs around 2,200 people. Feintool trains about 60 young people at its various locations, as tool mechanics, engineers, mechatronics and other professions, thus ensuring that its ranks can be replenished with in-house talent.

The key figures at a glance

¹⁾ Compared to the same period in the previous year

Feintool International Holding AG
Industriering 8 - 3250 Lyss
Switzerland
www.feintool.com

Spokesperson

Karin Labhart
Tel. +41 32 387 51 57
Mobile +41 79 609 22 02
karin.labhart@feintool.com

The press release can be downloaded from the following link:

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Feintool International Holding AG
Industriering 8 Lyss Switzerland

ISIN: CH0009320091;