Schweizer continues successful course in 1H/2011

In the first half year, sales volume increased to 58.0 million Euro (previous year 50.8 million Euro), a plus of 14% compared to the corresponding first half of the previous year. EBITDA was at 8.2 million Euro and EBIT was at 5.7 million Euro. Based on these results, earnings per share were 1.27 Euro for the first half year 2011, an increase by 15% compared the same period of last year, adjusted by special effects. This increase resulted mainly from customers in the automotive and industry segments. With sales of 30.2 million Euro (previous year 25.2 million Euro), the automotive segment represents 52% (previous year 50%) of total sales of the first half year. This success was primarily achieved through Schweizer’s solutions within the fields of System Cost Reduction and Power Electronics which precisely meet requirements of the automotive industry. The industry segment, too, grew disproportionately in the first half year 2011. Sales of 10.4 million Euro (previous year 5.8 million Euro) was supported by a positive market development in the field of control electronics. In the first months of 2011, the market for photovoltaic was characterized by insecurity and weak business volumes on its customers’ side. For Schweizer this lead to noticeable declines in sales in this customer segment. Whereas in the first half year 2010 sales of 15.9 million Euro could be achieved, sales in the first half year of 2011 were reduced by 18% to 13.0 million Euro. In the past months the company’s financial stability was further significantly improved and the balance sheet grounds on a solid foundation. This is sustained by an equity ratio of more than 50 % and a net gearing of smaller 5%. The financial situation allows for a well-resourced entrepreneurial room to move and is the basis for Schweizer’s diversification strategy. The company strategy is focused on the Asian growth region as a complement to its European business. Furthermore, the concentration on the dynamic topics mobility and energy efficiency in the sales segments Automotive, Solar and Industry opens up disproportional growth opportunities. In parallel, Schweizer accordingly and consistently gears its portfolio to mastering the challenges of its target markets by offering a range of technological possibilities, which can be combined with one another in a modular manner. The implementation of this strategy is based on the company's structuring into four business segments. The existing segments of PCBs and Tracing are to be expanded. The Systems and Energy segments are being established and their structure will contribute to the complementary enhancement of the existing business areas. The creation of these new segments represents a first step in the tactical implementation of Schweizer's diversification strategy. In the context of this diversification strategy, the company announced the foundation of Schweizer Energy Pte. Ltd. in Singapore in May. This new company is at the centre of developing Asian markets in the field of energy generation and energy storage. Globally, first insecurities caused by the debt crises are looming ahead. Nevertheless the company confirms its expectations for the Fiscal Year 2011 for a sales increase of up to 110 to 120 million Euro and an EBIT-Margin of 9% to 10%.