Schweiter Technologies: Gratifying growth momentum and increased earnings

Schweiter Technologies / Schweiter Technologies: Gratifying growth momentum and increased earnings . Processed and transmitted by Nasdaq OMX Corporate Solutions. The issuer is solely responsible for the content of this announcement.

Horgen, August 15, 2014 - Group net revenues amounted to CHF 375.5 million in the first half of 2014, which represents an increase of 11%. The increase in local currencies amounted to 13%. Both divisions contributed to the revenue growth. The results showed above-average rises. Group EBITDA was up 15% to CHF 40.3 million, EBIT increased by 28% to CHF 28.7 million, and net income grew by 20% to CHF 20.8 million. The Group's cash position stood at CHF 283 million after distribution of approx. CHF 57 million to the shareholders.

Schweiter Technologies Group   
(in CHF millions) H1
2014H1
2013+ / - Net revenues 375.5 338.9 11% EBITDA 40.3 35.1 15% as a % of net revenues10.7%10.4% EBIT 28.7 22.5 28% Net income 20.8 17.3 20%

3A Composites reported a figure of CHF 349.9 million for orders received (1H 2013: 306.1 million). Net revenues rose by 10% to CHF 333.1 million (1H 2013: 301.9 million). This resulted in EBITDA of CHF 33.8 million (1H 2013: 31.3 million), representing a return on sales of at least 10%. EBIT came to CHF 22.8 million (1H 2013:19.2 million).
This growth was driven primarily by the architecture and display business in Europe. To some extent this can be attributed to the favorable weather conditions at the beginning of the year. Besides a stable trend in Western European countries, revenues in Southern Europe recovered slightly, although at a low level.
Architecture continued to post encouraging results in Asia, with growth driven in part by the successful integration of the Indian-based production facilities acquired at the end of 2013. After a weak prior-year period, architecture revenues increased in the US.
Demand for core materials was solid in both the wind power industry and the marine market. The considerable pressure on prices seen in this segment in recent years also eased.
Business fell short of expectations in the transport segment. Due to project delays and partially due to long certification processes, existing customer interest could not be sufficiently translated into revenues.

SSM Textile Machinery achieved a sound figure for orders received of CHF 41.4 million (1H 2013: 39.1 million). Net revenues rose by 15% to CHF 42.2 million (1H 2013: 36.7 million). 
SSM benefited from its strong market position in the man-made fibers segment and the success of its subsidiary SSM Giudici, acquired in 2012. Among the most important sales markets, Turkey and the Southeast Asian countries developed encouragingly, while investment activity remained below average in China.
EBITDA showed a significant improvement, growing to CHF 7.7 million (1H 2013: 4.8 million). This corresponds to a margin of 18%.

Outlook
3A Composites is expected to see its overall business performance continue along similar lines in the second half. Architecture and display business will remain solid in Europe and the US. Due to its strong market position and an improved production base, the architecture business in Asia is expected to grow further.

SSM Textile Machinery business is expected to remain sound, though slowing down slightly in the second half.

A media conference on the results for the first half of 2014 for analysts, media representatives and investors will take place at 11.00 a.m. today at the Marriott Hotel, Neumühlequai 42, 8035 Zurich.

For further information:
Martin Klöti, CFO
Tel. +41 44 718 33 03, fax +41 44 718 34 51, martin.kloeti@schweiter.com

Schweiter Technologies AG
Neugasse 10, 8810 Horgen, Switzerland
Tel +41 44 718 33 03 Fax +41 44 718 34 51 www.schweiter.com

The results for the first half of 2014 can be downloaded from the following link:

Semi-Annual Report 2014 (PDF)


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Source: Schweiter Technologies via Globenewswire
HUG#1848974

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Schweiter Technologies
Neugasse 10 Horgen Switzerland

ISIN: CH0010754924;