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Von Roll Hol­ding AG: First half-year results 2016

Au/Wädenswil, August 25, 2016 — The­re were no signi­fi­cant chan­ges in the rele­vant mar­ket seg­ments com­pa­red with the pre­vious year. Mar­ket reces­sions had a nega­ti­ve impact, and weak sales led to an ope­ra­ting EBIT of CHF ‑5.4 mil­li­on as against CHF ‑6.6 mil­li­on in 2015. Alt­hough the loss was redu­ced year on year, the over­all result clear­ly does not meet expectations.

The actions taken wit­hin the trans­for­ma­ti­on stra­te­gy, such as con­so­li­da­ting plants and laun­ching new pro­ducts, have alrea­dy begun to bear fruit:

Gross pro­fit incre­a­sed by 11.1% year on year des­pi­te weak sales.

The gross mar­gin rose from 16.3% to 19.7%.

The cost-cut­ting pro­gram­mes that were laun­ched last year and that have alrea­dy been imple­men­ted resul­ted in savings as intended.

In the lar­gest seg­ment, Insu­la­ti­on, the gross mar­gin incre­a­sed in all pro­duct are­as, con­fir­ming the bene­fits of the transfor­mation pro­cess and sen­ding out a posi­ti­ve signal for the fu­ture. In addi­ti­on, the power genera­ti­on mar­ket seg­ment sta­bi­li­sed. Sales were wea­ker in the high-vol­ta­ge motors and fire-resistant cables sec­tors. Both mar­kets are hea­vi­ly depen­dent on the cru­de oil pri­ce, which means a noti­ce­ab­le decli­ne in orders from the oil- and gas indus­try. In the Insu­la­ti­on seg­ment the operat­ing EBIT incre­a­sed from CHF ‑4.0 mil­li­on to CHF 0.8 million.

By con­trast, the Com­po­si­tes seg­ment pos­ted disap­poin­ting results, with both sales and ope­ra­ting EBIT down on the previ­ous year. This was pri­ma­ri­ly due to a lack of orders in the ballis­tics and alu­mi­ni­um smel­ter segments.

The results for the first half of the year show that the­re is still a long way to go in impro­ving the ope­ra­ting busi­ness. The trans­formation and focus on new growth seg­ments such as electro­mobility and wind power, as well as the adjus­t­ment of capa­ci­ty levels are not yet com­ple­te. As a con­se­quence of the site clo­sures towards the end of 2015, the num­ber of posi­ti­ons was redu­ced by 13.5% com­pa­red with the pre­vious year.

As announ­ced in ear­ly July 2016, fur­ther mea­su­res are plan­ned to save CHF 18 mil­li­on in cos­ts from 2017 on­wards. Savings of around CHF 4 mil­li­on are alrea­dy expec­ted for the second half of 2016, while rest­ruc­tu­ring cos­ts will amount to some CHF 8 mil­li­on. The refi­nan­cing of the bond to be re­deemed in Octo­ber 2016 has been secured.

Fur­ther infor­ma­ti­on can be found in the Semi-Annu­al Report 2016. This is avail­ab­le in digi­tal form at http://www.vonrollgroup.com/en/.

 

Key figu­res

in CHF 1,000

1H 2016

1H 2015

Chan­ge

Order inta­ke

172,385

190,967

-9.7%

Net sales

174,098

189,097 -7.9%

   the­re­of Insulation

118,979 124,344

-4.3%

   the­re­of Composites

51,309

58,173

-11.8%

   the­re­of other activities

3,810

6,580

-42.1%

EBIT

-5,384

-6,557

17.9%

Net inco­me for the period

-11,134

-15,939

30.1%

Cash flow from ope­ra­ting activities

-12,583

-16,822

25.2%

Equi­ty ratio (%)

14%

22%

-8 ppt

Num­ber of employees (FTE)

1,856

2,146

-13.5%

 

About Von Roll Hol­ding AG: As a Swiss indus­tri­al com­pa­ny Von Roll Hol­ding AG focu­ses on pro­ducts and sys­tems for power genera­ti­on, trans­mis­si­on and sto­rage. Von Roll is a glo­bal mar­ket lea­der for electri­cal insu­la­ti­on pro­ducts, sys­tems and ser­vices and has a world­wi­de pre­sence in about 28 sites in 15 coun­tries with 1,856 employees.

 

Con­ta­ct

Clau­dia Güntert
Head of Cor­po­ra­te Communications
& Inves­tor Relations
T +41 61 785 52 36
F +41 61 785 58 92
E press@vonroll.com

 

This press release is based on infor­ma­ti­on cur­r­ent­ly avail­ab­le. Unfo­re­see­ab­le risks and influ­en­ces may lead to dis­crepan­ci­es with the state­ments made here. For more infor­ma­ti­on on the com­pa­ny and its busi­ness per­for­mance, plea­se refer to the Annu­al and Semi-Annu­al Report of Von Roll Hol­ding AG which is avail­ab­le in digi­tal form at https://www.vonroll.com/en/.