Feintool results for 1st quarter of 2016: Feintool posts growth of 12% and continues its upward trend
OREANDA-NEWS. Feintool reported sales of CHF 139 million from January 1 through March 31 2016, which corresponds to an increase of 12% after adjusting for currency-related factors. The series parts production business saw growth of 8% before allowing for exchange rate effects, while the cyclical investment goods business grew by 32%.
The Feintool Group continued to benefit from its strong market position and the relatively positive market environment in the first quarter of 2016. The Group as a whole posted sales of CHF 139.2 million, a 16.0% rise in terms of the reporting currency. Of this total, currency influences accounted for four percentage points. Series production of complex precision components (System Parts segment) benefited from a further ramping-up of projects acquired earlier. This segment upped its sales by 12.0% to CHF 119.3 million, a rise 7.6% in currency adjusted terms. All regions contributed to the growth. In the investment goods business, Fineblanking Technology's sales rose by 32.4% to CHF 22.0 million.
Subdued inflow of orders for investment goods - but healthy orders backlog
Orders received in the Fineblanking Technology segment decreased by 23.6% to CHF 17.8 million. In many places, uncertainty in the markets resulted in retrained investment. Although plenty of queries are still being received, new orders have slowed noticeably. The orders backlog decreased by 12.5% versus the previous year to CHF 39.4 million. Fineblanking Technology has enough investment goods orders in hand to last six to eight months.
Expected order releases in the series parts production business reach all-time high
Expected order releases for the next six months rose by 7.9% to CHF 222.5 million, an all-time high for the company.
Feintool expects business to continue its positive trend during 2016. This year we anticipate sales growth of 5% to around CHF 530 million and an EBIT margin of approx. 7%.
Organizational changes at Feintool
In a move that had been prepared some time ago and for reasons of age, CEO Heinz Loosli will be handing over to his designated successor, Bruno Malinek, as of September 1, 2016. Malinek, who has profound knowledge of the sector, will combine the role of CEO with that of Head of the System Parts segment.
To ensure that his many years of experience of Feintool's business are not lost to the company, Heinz Loosli will be proposed for election to the Board of Directors at the 2017 Annual General Meeting. Furthermore, two current Directors - Wolfgang Feil and Kurt Stirnemann - will not be standing for re-election at the 2017 AGM for reasons of age.
Key financial figures in brief
Figures in CHF
|Feintool Group consolidated sales||139.2||120.0||16.0||12.0|
|Fineblanking Technology segment||22.0||16.6||32.4||31.4|
|System Parts segment||119.3||106.5||12.0||7.6|
|Orders received - investment goods|
|Fineblanking Technology segment||17.8||23.3||-23.6||-24.0|
|Orders backlog - investment goods|
|Fineblanking Technology segment||39.4||45.1||-12.5||-12.5|
|Expected releases - series parts|
|System Parts segment||222.5||206.1||7.9||6.2|
Profile in brief
Feintool is the world's leading technology group specializing in the development of fineblanking systems and the production of ready-to-install fineblanking and forming components, notably for the automotive industry. The Group maintains close partnerships with its customers across the entire fineblanking and forming process - from component design, toolmaking and system construction through to large-scale series parts production. In addition to fineblanking, the Feintool Group also deploys other key processes such as precision forming and orbital technology, and is the world's only supplier of all-round solutions for the cost-effective manufacture of complex precision components.
With its locations in Europe, Japan, China and the USA, the Feintool Group is represented in the world's major automotive markets. Headquartered in Lyss, Switzerland, the Group has a headcount of just under 2,000. At its various locations, Feintool provides training at any given time for about 80 young people in a number of skills (mainly multi-skill mechanics, design engineers and commercial trades).