OREANDA-NEWS. Adval Tech improves operating earnings and further expands its market position in the global automotive industry.

By opening its own plant in Mexico for the manufacture of plastic components for the automotive industry in November 2015, and completing the acquisition of Fischer IMF in mid-April, the Adval Tech Group has strengthened its market position in the global automotive industry. Adval Tech's Components segment focuses on the automotive market and related applications in other industries. The company's principal markets in the mold making segment are consumer and personal care, packaging, medical and automotive.

Total income and operating earnings 2015

At CHF 224.3 million, the Group's total income in the review period was CHF 22.7 million below the previous year's figure (CHF 247.0 million). Roughly 2/3 of this 9.2% contraction was due to exchange rate movements, primarily as a result of the lifting of the euro-franc exchange rate floor in January 2015. At constant exchange rates, total income declined by only 2%. The Components segment accounted for some 68% of total income (2014: 66%) while the Molds segment made up the remaining 32% (2014: 34%).

Despite the decline in total income, Adval Tech increased EBITDA by 4.7% to CHF 24.4 million (previous year: CHF 23.3 million) and raised the EBITDA margin from 9.4% to 10.9%. Net of currency effects the EBIT margin was 11.9%. Adval Tech lifted EBIT in the year under review to CHF 9.8 million (2014: CHF 8.9 million), corresponding to an EBIT margin of 4.4% (2014: 3.6%). Net of currency effects the EBIT margin was 5.6%. With the rapid implementation of specific cost reduction and efficiency enhancement measures, whose impact unfolded primarily in the second half of the year, Adval Tech was largely able to offset the negative effects of the Swiss franc's substantial appreciation. In overall terms, the Adval Tech Group closed the 2015 financial year with a net result of CHF 0.6 million (2014: CHF 1.9 million, first half of 2015: CHF -2.8 million).

Components segment

Total income in the Components segment (metal and plastic) of CHF 153.1 million for 2015 was 6.9% lower than the previous year's CHF 164.4 million. At constant exchange rates, the decline was only 3.6%. Thanks to a successfully implemented cost reduction program, efficient cost control and contracts for two complementary production systems, the Components segment posted EBITDA of CHF 12.3 million (2014: CHF 10.2 million). Net of currency effects the total was
CHF 3.2 million above the year-back figure. The Components segment raised its EBIDTA margin by 1.8 percentage points to 8.0% (2014: 6.2%).

Since January 2015 Adval Tech has been producing air deflection elements and air guidance systems for Audi in Hungary using an innovative tooling concept. Adval Tech has delivered plastic components for the Q7 model to the Audi plant in Bratislava since early 2015. Components for the A4 model have been shipped to Audi's plant in Ingolstadt since mid-2015. Based on the good experience of this collaboration and in response to the innovative approach to tooling and the positive effect it has had on the components, Audi also chose the Adval Tech Group to supply air deflection elements and air guidance systems for the new Audi site in Mexico. Upon completion of testing and final acceptance of the tools and production equipment in Europe, Adval Tech shipped them to the new production facility in Quer?taro, Mexico. Adval Tech built this new greenfield plant not far away from Audi plant in this country.

Adval Tech succeeded in securing an additional plastic components order during the year under review with airflow systems for the VW Touareg. Series production is scheduled to start in Hungary in 2017 and continue for eight years.

In the metal components unit, a tier-one-customer (direct supplier to automotive manufacturers) has nominated Adval Tech for a second steering system production line. The Components segment also launched series production of an electric column adjustment subassembly for BMW's 35up platform (3, 5, 7, X3, X5, X6, X7 series) during the year under review.

Molds segment

In the second half of 2015, the Molds segment (mold-making), which trades under the name FOBOHA, was able to successfully complete some of the projects that had been deferred during the first half of the year to generate total income of CHF 74.4 million (previous year: CHF 86.1 million). At constant exchange rates, total income for the Molds segment was on a par with the previous year. At CHF 9.7 million, EBITDA was CHF 1.3 million below the prior-year figure of CHF 11.0 million. By contrast, the EBITDA margin rose to 13.0% (2014: 12.7%).

FOBOHA Switzerland won a new order in the strategic field of food packaging and bottle caps despite the significant appreciation of the Swiss franc. It also developed a pilot mold for one of the world's leading consumer goods groups – FOBOHA Suzhou (China) then manufactured the corresponding production molds.

The establishment of a global key account team managed from the Haslach site (Germany) and offering international clients a high level of service worldwide, has paid off. Adval Tech FOBOHA pursued several innovation projects in 2015 too. These include the technological development of injection blow-molding tools based on cube technology.


With the construction of the new plastic components plant in Mexico and the acquisition of Fischer IMF (Germany) in the metal components sector, the Adval Tech Group reached two more significant milestones in implementing its focusing strategy, laying a foundation for future growth in the automotive market.

In order to meet customer needs even better, in 2016 Adval Tech will concentrate on the full integration of Fischer IMF, bringing the facility in Mexico up to speed, and the successful filling of newly won orders.

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Background information about the Adval Tech Group

Adding value through innovation – that's what Adval Tech stands for. Adval Tech is the partner of choice – for high-volume components manufactured in metal and plastic and for high-performance molds for the production of plastic components. In the components business, Adval Tech focuses on the automotive market and on related applications. Adval Tech's principal markets in the mold-making segment are consumer and personal care, packaging, medical and automotive. Adval Tech covers the entire value chain as a one-stop-shop, from product development to prototyping, to mold and tool development, and through to component production and assembly.