GURIT
Performance targets met in H1 2009, but all product groups see declines / Full-year results below 2008
Swiss advanced composites developer and producer Gurit (Wattwil; www.gurit.com) met its earnings targets in the first half of 2009, posting operational EBIT of CHF 9.9m (EUR 6.5m), and with an EBIT ratio of 5.7% slightly outperforming the 5.2% EBIT ratio of the 2008 period. At the same time, sales revenue fell 26% year-on-year to CHF 175m (EUR 116m).
The company credits its operational improvement programme begun in 2008 for its stable H1 performance. However, as full-year sales are expected to be “markedly lower” compared with 2008, it warns that the operational EBIT margin for 2009 is likely to be only 5%. Management does not expect “significant market recovery” before 2010 or 2011.
Denominated in Swiss francs, sales in Gurit’s three target markets of wind energy, transportation and marine applications, taken together, declined by nearly 21%, although the decrease was only 12% when calculated at constant currency exchange rates. Wind Energy returned Swiss franc sales of CHF 117m, almost 12% behind the 2008 first half. Year-on-year, the segment increased its share of group sales to 67% from 56%. Here, the composites producer, which recently acquired a majority share in a PVC structural foam manufactuer at Tsingdao, has benefited from Chinese state investment in wind parks.
Gurit’s sales to the transportation sector decreased by 15.7% to CHF 31m, but the segment nevertheless increased its share of group revenue to 18% from 16%. This segment’s main customer is the aerospace industry, where it is a major supplier of Airbus. The company also supplies prepregs for Chinese high speed trains and reports “considerable interest” in its cost-optimised production technology for small car series in high-end markets.
Sales to customers in the depressed marine industry fell by half to CHF 22.3m in H1, a development attributed to fewer international regattas. This business’ share of turnover eroded to 13% from 19%. Gurit said it is developing new products for the marine market and expects to see a “solid recovery” in 2011. Management believes the decline in capacity utilisation rates came to a standstill after the first quarter. In the meantime, it said, production of structural foams has “improved greatly,” although prepreg manufacture is not likely to recover until 2010.
e-Service:
Gurit financial report on H1 2009 as a PDF document (837 kB)
The company credits its operational improvement programme begun in 2008 for its stable H1 performance. However, as full-year sales are expected to be “markedly lower” compared with 2008, it warns that the operational EBIT margin for 2009 is likely to be only 5%. Management does not expect “significant market recovery” before 2010 or 2011.
Denominated in Swiss francs, sales in Gurit’s three target markets of wind energy, transportation and marine applications, taken together, declined by nearly 21%, although the decrease was only 12% when calculated at constant currency exchange rates. Wind Energy returned Swiss franc sales of CHF 117m, almost 12% behind the 2008 first half. Year-on-year, the segment increased its share of group sales to 67% from 56%. Here, the composites producer, which recently acquired a majority share in a PVC structural foam manufactuer at Tsingdao, has benefited from Chinese state investment in wind parks.
Gurit’s sales to the transportation sector decreased by 15.7% to CHF 31m, but the segment nevertheless increased its share of group revenue to 18% from 16%. This segment’s main customer is the aerospace industry, where it is a major supplier of Airbus. The company also supplies prepregs for Chinese high speed trains and reports “considerable interest” in its cost-optimised production technology for small car series in high-end markets.
Sales to customers in the depressed marine industry fell by half to CHF 22.3m in H1, a development attributed to fewer international regattas. This business’ share of turnover eroded to 13% from 19%. Gurit said it is developing new products for the marine market and expects to see a “solid recovery” in 2011. Management believes the decline in capacity utilisation rates came to a standstill after the first quarter. In the meantime, it said, production of structural foams has “improved greatly,” although prepreg manufacture is not likely to recover until 2010.
e-Service:
Gurit financial report on H1 2009 as a PDF document (837 kB)
21.09.2009 Plasteurope.com [214376]
Published on 21.09.2009
German version of this article...