November 19, 2004
» Carlo Gavazzi: significant improvement of results in first semester | July 22, 2004
» Annual shareholders' meeting | June 17, 2004
» Gavazzi: Strongly improved earning power - resumption of dividend payment | February 6, 2004
» Carlo Gavazzi transfers part of sensor production to Lithuania |
November 19, 2004 - Carlo Gavazzi: significant improvement of results in first semester
Steinhausen, November 19, 2004 - In the first six months of the current period, ended September 30, 2004, the Zug based electronics group improved its financial results significantly thanks to continued efficiency improvements.
EBIT rose by 73% from CHF 2.2 million to CHF 3.8 million and net income almost quintupled from CHF 0.5 million to CHF 2.4 million. Bookings rose to CHF 103.4 million and operating revenue increased to 99.2 million (previous year CHF 98.4 million). Compared with the same period of the previous year and on a currency neutral basis, these increases corresponded to 6.9% and 3.0%, respectively.
Net interest-bearing debt was reduced by 20% from CHF 17.4 million at the end of March 2004 to CHF 13.9 million at the end of the reporting period and shareholders' equity increased to reach CHF 97.9 million or 56% of total assets.
Despite the difficulty in forecasting future economic developments, management is confident that operating revenue and profitability for the second half-year will slightly exceed the levels of the reporting period.
» Click here to access to the full Interim Report |
July 22, 2004 - Annual shareholders' meeting
Steinhausen, July 22, 2004 - The shareholders of the Zug-based electronics group resolved at today's shareholders' meeting to distribute a dividend of CHF 2 per bearer share (pay-out ratio 28%).
The Gavazzi family will henceforth consider the majority participation held by Barguzin, the family holding, as a long-term financial investment in the group. As a consequence of this modified participation strategy, in view of the contemplated adaptation of the number of board members to the group's size and also following statutory age regulations, the composition of the board changed. Nine members retired from the board and were replaced by the following three new members: Alessandro Berlingieri and Mario Galletto as representatives of the family holding as well as Federico Foglia, member of the executive management board of Banca del Ceresio, Lugano, Switzerland. Werner S. Welti continues to chair the board of directors, now comprising five members, including Dominique Fässler.
At the occasion of the shareholders' meeting it was announced that both operating revenue and profit of the group developed positively and within targets during the first quarter of the current financial year 2004/05 (April to June).
 » Press Release |
June 17, 2004 - Gavazzi: Strongly improved earning power - resumption of dividend payment
Steinhausen, June 17, 2004 - The Zug-based electronics group achieved a net income of CHF 5.2 million (previous year loss of CHF 2.7 million) in the financial year 2003/04 (closing March 31, 2004).
Despite the continued weak market environment, operating revenue on a currency neutral basis rose by 1%. Revenue in Swiss francs reached CHF 203.8 million and remained at the level of the previous year (CHF 204.8 million). As a result of the implemented cost saving and efficiency improvement programmes, EBIT increased by CHF 8.9 million to reach CHF 8.5 million (CHF - 0.4 million). In view of the sustained improvement of earning power, the board of directors will propose to the forthcoming shareholders' meeting the payment of a dividend of CHF 2 per bearer share.
The continuing focus on dedicated solutions for selected market segments and the expected market improvement should allow the group to return to internal growth. The contemplated higher revenue and the maintained lean structures should result in a further increase in net income.
Owing to the implemented efficiency improvement programmes, the Carlo Gavazzi Group succeeded in substantially improving its gross profit margin by 3.6 percentage points to reach 40.1%. As a result of cost cutting measures, operating expenses decreased by 1.5%. Net interest-bearing debt was reduced by 53% from CHF 37.2 million to CHF 17.4 million and equity reached a solid 51% of total assets, reflecting the further strengthened balance sheet.
Automation Components with revenue growth in a declining market
Worldwide investments in machinery and equipment, the main market of the Automation Components Business Unit, declined by 1.9% compared with the previous year. Despite this unfavourable market environment, the business unit achieved an internal growth of bookings of 8.5% (currency neutral 5.7%) and operating revenue of 5.2% (currency neutral 2.4%) and improved its market share further. Thanks to efficiency improvements in the manufacturing facilities, the gross profit margin increased despite the ongoing market price erosion. Together with strict cost control, operating profit improved by 26% to reach 7.3% of revenue.
Restructuring of Electronic Packaging successfully completed
Despite the continued decline of demand from the US telecom infrastructure of more than 10%, the Electronic Packaging Business Unit succeeded in stabilising its operating revenue in US dollars on the level of the previous year. Revenue in Swiss Francs decreased by 12% as a consequence of the ongoing devaluation of the US dollar. As a result of the speedily implemented, strict restructuring process, major improvements of the operating performance were achieved. Operating profit increased by CHF 6.8 million or 12% of revenue compared with the previous year and the business unit succeeded in returning to profitability. In order to reduce its dependency on telecom, new market segments were accessed and a first large order from the medical sector could already be secured. In addition, recently established co-operations with manufacturers of active boards are developing favourably and are expected to generate additional business volume in future.
Key figures Group (CHF million)
| Income Statement | 2003/04 | 2002/03 | % |
|---|
| Bookings | 206.5 | 208.9 | - 1.1 | | Operating revenue | 203.8 | 204.8 | - 0.5 | | EBIT | 8.5 | 0.4 | - | | Group net income | 5.2 | - 2.7 | - | | Cash flow | 10.4 | 5.8 | + 79.3 | | Employees | 999 | 1033 | -3.3 |
| Balance sheets (as of March 31) | 2004 | 2003 | % |
|---|
| Net working capital | 46.0 | 49.7 | - 7.4 | | Net interest-bearing debt | 17.4 | 37.2 | - 53.2 | | Shareholders' equity | 95.9 | 89.7 | + 6.9 | | Total assets | 186.4 | 195.8 | - 4.8 |
Key figures business units
| CHF Mio. | 2003/04 | 2002/03 | % |
|---|
| Bookings | | Automation Components | 149.9 | 138.2 | + 8.5 | | Electronic Packaging | 56.6 | 70.8 | - 20.1 | | Operating revenue | | Automation Components | 145.9 | 138.7 | + 5.2 | | Electronic Packaging | 57.9 | 66.1 | - 12.4 | | Operating profit | | Automation Components | 10.6 | 8.4 | + 26.2 | | Electronic Packaging | 2.1 | - 4.7 | - | | Employees | | Automation Components | 831 | 854 | - 2.7 | | Electronic Packaging | 162 | 171 | - 5.3 |
Outlook 2003/04
It is expected that the focus on product innovation for defined market segments, the enhanced utilisation of all available channels to market and the visible economic recovery should allow the group to return to internal growth. The contemplated revenue growth and the lean structures should result in further improvements of net income.
The Automation Components Business Unit will continue to focus on its core product lines and on innovative automation solutions for the selected market segments. For 2004/05, the business unit expects a moderate growth of operating revenue and an over-proportional increase in operating profit.
The Electronic Packaging Business Unit should benefit from the enhanced and systematic sales efforts and the now visible market recovery. As a consequence, the unit should be able to grow operating revenue and to increase operating profit in excess of revenue growth.
Proposals to the annual shareholders' meeting
In consideration of the net income achieved in the reporting period and the expected positive development of the group's performance, the board of directors will propose to the forthcoming shareholders' meeting of July 22 to pay a dividend of CHF 2 per bearer share.
» Press information |
February 6, 2004 - Carlo Gavazzi transfers part of sensor production to Lithuania
Steinhausen, February 6, 2004 - In order to further improve the competitiveness and the operating margin of its Automation Components Business Unit, Carlo Gavazzi, the Zug based electronics group is transferring part of its production from the Danish facility located in Hadsten to Kaunas, Lithuania.
The new sensor plant in Lithuania, which started production in December 2003, will increase employment to 60 during the year. After the corresponding reduction of the workforce in Hadsten, 150 people in R&D and production will continue to be employed at the Danish location. In the previous financial year, Automation Components, one of Carlo Gavazzi's core businesses, achieved an operating revenue of CHF 140 million.
Management also confirms that it is confident of reaching the group's earnings targets for the current financial year ending March 31, 2004 as communicated in the interim report issued in November 2003.
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