Breitenbach, August 21, 2019 — In the first half of 2019, the Von Roll Group achieved a positive operating result (EBIT) of CHF 3.7 million with net sales of around CHF 155 million.
Despite of a weak market environment, the Von Roll Group achieved a net profit of around CHF 0.9 million, at the same level as the previous year. The high use of resources to enter new markets and the continuing slowdown in the economy were the reasons for the generally weaker financial figures for the first half of the year compared with the previous year. Group sales in the first half of the year were around 8.8 % below the previous year. Adjusted for the business units divested in the first half of 2018, the decline amounted to 6.9 %. Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to CHF 11.4 million.
The current weak economic forecasts continue to be a challenge for the Group in the second half of the year. Irrespective of this, the Von Roll Group will continue resolutely to expand its business activities into new markets such as automotive and aerospace, even if doing so requires increased investments and expenses to the detriment of the earnings situation.
Change to Swiss GAAP FER
The Board of Directors has decided to change the accounting method for the financial statements from IFRS to Swiss GAAP FER as of December 31, 2019. This change will enable the Von Roll Group to organize its financial reporting more efficiently from a cost-benefit perspective. In addition, this step will enable the targeted growth to be better reflected, for example through through joint ventures.
With the change to Swiss GAAP FER, the accounting principles currently applied remain unchanged. The main adjustments relate to the balancing of pension obligations, the treatment of goodwill and deferred taxes. As of December 31, 2018, the balance sheet is expected to shrink to approximately CHF 312 million and the equity ratio to approximately 64 %, a reduction of approximately 3 %-points. The change will have a significant impact on the presentation of the income statement, although positive and negative effects on the result will be partially offset.
Transparent reporting in line with the true-and-fair principle continues to be guaranteed even after the transition from IFRS to Swiss GAAP FER.
|in CHF 1,000||1H 2019||1H 2018||Change|
|EBITDA from continuing operations||11,412||16,703||–31.7%|
|Net income for the period||894||954||–6.3%|
|Cash flow from operating activities||405||6,861||–94.0%|
|Equity ratio (%)||66.7%||28.7%||+38 ppt.|
|Number of employees (FTE)||1,252||1,277||–2.0%|
About Von Roll Holding AG: As a Swiss industrial company, Von Roll Holding AG focuses on products and systems for power generation, transmission, storage and distribution. Von Roll is a global market leader for electrical insulation products, systems and services and has a worldwide presence in 14 production sites with around 1,250 employees. The company supplies customers in over 80 countries.
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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/.