PCB | February 26, 2009

Schweizer Electronic shows considerable improvement in 2008

In 2008, Schweizer Electronic succeeded in not only developing sales volumes (up by 5% compared to the prior year), but also succeeded in strengthening productivity and qualitative growth, despite unfavourable economic conditions during the second half-year.

Highlights from 2008
• 5% increase in turnover in the 2008 financial year – despite fourth quarter sales crisis
• Industrial sales doubled
• Photovoltaic sales up 300%
• 90% of sales growth achieved in high-value circuit board technologies
• EBIDTA margin before special effects: +7,4% in 2008 after –1,2% in the prior year
• Liquidity over EUR 23 mln.
• Non-recurring items and provisions for further cost reduction measures burden the 2008 result
• 11% increase in new orders in 2008

Successful Turnaround
In the first instance, the portfolio measures led to a strengthening of Schweizer Electronic. Industrial electronics sales rose by 113% to EUR 30.7 mln compared to the prior year. The largest portion of this development was due to photovoltaic sales. As a result, the ratio of automotives reduced to 57% in the overall turnover (prior year: 67%).

In addition, the subsequently realised restructuring and cost reduction measures had a positive effect. Schweizer Electronic increased the productivity of its personnel by 10%, achieved clear savings in other operating expenses and consolidated its German production capacities earlier than planned. The first three quarters were characterised by a steady improvement in revenues. The operating result was thus above expectations.

Effects of Economic Crisis put Dampener on Fourth Quarter
The economic crisis also had a negative effect on Schweizer Electronic in its fourth quarter results, despite a rapid implementation of counter-measures. These included shortened working hours since the 1st of November 2008.

Schweizer Electronic in 2009
Schweizer Electronic will continue to implement its strategic plan unabated:
• Expanding product lines by sourcing supplies from low-cost countries
• Developing and strengthening the professional resources in sales
• Own distribution channels for major customers in automotives and industrial electronics as well as customers in small and medium-sized business
• Further developing innovative solutions such as an RFID-based measuring instrument for temperature monitoring in sensitive application areas (incl. blood products).

Schweizer Electronic has a robust balance sheet structure with an equity ratio of 33% as well as a debt ratio of 2.0. Liquidity of EUR 23.1 million consists of cash funds and unutilised lines of credit. Neither the complete, mint-condition machinery, nor the industrytypical high level of receivables, is financed by leasing or factoring. Supplier invoices are, in principle, discounted.
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