Schweizer Electronic: Turnover down by 5.7% in 1H/2019

In the second half year the turnover decline slowed down to 2.9 percent, while a difference of -8.5 percent against previous year’s period was reported in the first quarter. The EBITDA (earnings before interest, taxes, depreciation and amortisation) amounted to 1.0 million euro (2018: 6.6 million euro), which corresponds to an EBITDA margin of 1.7 percent (2018: 10.3 percent). The EBIT (earnings before interest and taxes) amounted to -2.3 million euro (2018: 2.8 million euro). Schweizer continues to invest strongly in the promising future topics of chip embedding and the setting up of the high technology plant in China. "We pursue these topics unabatedly despite the current economic slowdown. Furthermore, the Executive Board has started a comprehensive programme for cost reduction already in the first half year. This has already triggered successes whose positive effects on the result situation, however, will partly not become visible until the second half year", a press release states. On the basis of a stable development in the second half year, the manufacturer expects an annual turnover of EUR 120 to 125 million which is equivalent to a growth of between -4 and 0 percent (previously forecast: -5 to +5 percent) as well as an EBITDA margin of between 0 and 4 percent (previous forecast: between 4 and 6 percent). This corresponds to an absolute EBITDA of 0 to 4 million euro (previously forecast: 5 to 7 million euro). Our project in China is expected to contribute a negative EBITDA of 3.0 million euro in fiscal year 2019.