© Schweizer PCB | March 19, 2020
Schweizer posts an operative loss of €6.5 million for 2019
In the first half year 2019 Schweizer was hit by the slowdown of demand in the automobile as well as the industry sectors leading to a turnover decline of 5.7%. The turnover recovered in the second half year showing a minus of 1.6% against previous year’s period.
According to preliminary unaudited figures, the Schweizer Group achieved a turnover of EUR 120.7 million for the fiscal year 2019 which is at the lower end of the projected range of EUR 120 – EUR 125 million (previous year: EUR 125.3 million). The EBITDA amounted to of EUR 0.1 million (previous year: EUR 9.2 million) corresponds to an EBITDA margin of 0.1% (previous year: 7.3%) and is also in line with our adjusted forecast for 2019. The Group EBIT ended up at EUR -6.5 million (previous year: EUR 1.6 million) and corresponds to an EBIT margin of -5.4 % (previous year: 1.3%). The company says that while the business through its Asian partners WUS and Meiko developed on an outstanding note with a plus of 53%, sales from the parent plant in Schramberg was not moving in the same direction and showed a reduction of -17.5% against previous year’s period. Gross earnings amounted to EUR 12.6 million (2018: EUR 18.6 million). The gross margin reduced from 14.8% in the previous year to 10.5%. The company says that the main reasons for this decline were the sharply rising turnover share of printed circuit boards manufactured by its partners in Asia and the simultaneous decline their own production. “Due to the business model, gross margins in the trading business are lower than those of own production. The low capacity utilisation in particular burdened the profitability in Schramberg,” the company writes. Investment project China Schweizer says that the construction of the production and administrative building could be finalised in the year 2019 according to plan. “Despite the outbreak of the Corona virus, all employees could have returned to their workplace in the meantime, so that we currently expect the start of series production slightly delayed by mid-April,” the company writes.