Feintool boosts order intake by over 50 percent

In the first six months of the 2009/10 financial year, Feintool’s key markets – in particular the global automotive sector – recovered and even experienced growth. Furthermore, measures undertaken by Feintool last year made a clear impact. Sales were down around 4.0% to CHF 179.3 million compared with the previous year (CHF 186.7 million). However, the figure was unchanged after currency adjustment.

A higher gross margin, improved cost structures and the elimination of loss-making operations meant that the Group was able to achieve a positive operating result (EBIT) in the second quarter too. For the first six months of the current financial year, this figure stands at CHF 3.5 million. The trend in order intake was particularly gratifying, rising by a substantial 53.7% to CHF 197 million year-on-year. The CHF 127.2 million increase in orders in hand as at 31 March 2010 represents a jump of 15.5% compared to the end of the last financial year.

The Fineblanking Technology and Automation segments continued to experience slower recovery in the field of long-term industrial goods than the Systems Parts segment in the short-term series parts business.

Parts manufacturing in high demand
The System Parts segment posted a healthy set of results worldwide in the first quarter, doubling its order intake to CHF 125.3 million and increasing sales by 25% to CHF 110.9 million. At 5,9%, the EBIT margin was well above the year-back figure.

Technology for the fast-growing Asian market
In the press sector, Feintool experienced recovery in the Chinese and Korean markets in particular. The Fineblanking Technology segment increased order intake by 25% year-on- year to CHF 34.7 million. Despite the drop in sales by around one third to CHF 31.1 million, better cost management meant that a positive result was generated before depreciation, interest and taxes (EBITDA). Overall, the segment lifted its operating result (EBIT) from CHF 3.5 million to CHF -0.6 million.

Automation with lower costs
Order intake in the Automation segment was in line with expectations at CHF 37.0 million. In view of the late-cyclical nature of the equipment business, the first-half sales of CHF 40.1 million were well below the previous year at 26.9%. Despite low capacity utilization rates, cost-cutting measures resulted in a 52.5% rise in operating income (EBIT) to CHF 2.7 million.

All segments demonstrate innovative strength
All segments have been strengthened in both organizational and operational terms. With regard to sales, the Group was able to lower its break-even point to around CHF 100 million. All segments have worked extremely hard on innovative and challenging product developments. As a result, the flexible, high-performance and energy-efficient servopress series and the new assembly line for medical technology are due to be launched this financial year.

Each segment has also secured major new orders in the reporting period. The Chinese car manufacturer BYD has opted for Finetool’s fineblanking technology and expertise while System Parts has used fineblanking to produce new series parts for airbag components. The Automation segment also made a number of new acquisitions great future potential in the electronics, medical technology and metal fittings industries.

Positive outlook for the second half
The Feintool Group is optimistic about the second half of 2009/10. Prospects are currently good and we are reiterating our previously announced forecast for sales of CHF 340 to 350 million. We are now also predicting a positive EBIT figure for the year as a whole.

Further informatione
Feintool International Holding Karin Labhart Mediensprecherin Tel.: 032 387 51 63 karin.labhart@feintool.com.

--- END press release Feintool boosts order intake by over 50 percent ---

  Feintool International Holding AG (company entry)