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Von Roll tack­les weak mar­ket envi­ron­ment in the first half of 2019

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.

Key figu­res

in CHF 1,000 1H 2019 1H 2018 Chan­ge
Order inta­ke 155,514       180,810 –­14.0%
Net sales          154,754           169,767 –8.8%
    the­re­of Insulation          111,429            119,415 –6.7%
    the­re­of Composites              43,325              50,352 –­14.0%
EBIT­DA from con­ti­nuing operations 11,412 16,703 –­31.7%
EBIT                3,653                8,829 –58.6%
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.

 

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/.