December 12, 2005
» Carlo Gavazzi: new Singapore regional headquarters for Asia-Pacific | November 18, 2005
» Carlo Gavazzi: 46% increase in net income during the first semester - Positive outlook for the full year | July 12, 2005
» Carlo Gavazzi: implementation of announced staff reduction in the Computing Solutions Business Unit | June 23, 2005
» Carlo Gavazzi: net income improved by 31% - Dividend increase from CHF 2 to CHF 5 proposed | April 12, 2005
» Carlo Gavazzi: new CEO for Computing Solutions Business Unit | April 5, 2005
» Carlo Gavazzi: passing away of Honorary Chairman Riccardo Gavazzi | March 1, 2005
» Carlo Gavazzi: Hanspeter Schraner appointed CFO |
December 12, 2005 - Carlo Gavazzi: new Singapore regional headquarters for Asia-Pacific
Steinhausen, December 9, 2005 – The Zug-based electronics group has implemented the planned strengthening of its presence in the Asian-Pacific region. With the participation of representatives of the Singapore Economic Development Board and the media, the regional headquarters of the Automation Components Business Unit was officially inaugurated yesterday. The Singapore hub coordinates all activities in the region. These include the implementation of the sales and marketing strategies in the Asian-Pacific markets as well as all logistic functions. To accomplish these tasks, it is planned to increase the headquarters’ employment from today’s 13 to 25 within the next two years. As a result of its strengthened presence, Automation Components expects an over-proportional revenue-expansion of 40% per year in the coming three years in this strongly growing market. |
November 18, 2005 - Carlo Gavazzi: 46% increase in net income during the first semester - Positive outlook for the full year
Steinhausen, November 18, 2005 – The Zug-based electronics group significantly improved its performance in the six months ended September 30, 2005. Despite non-recurring costs of CHF 0.7 million for restructuring the Computing Solutions Business Unit and start-up costs for expansion of the Automation Components Business Unit in Asia-Pacific, EBIT increased by 23.7% to CHF 4.7 million (CHF 3.8 million) and net income rose by 45.8% to CHF 3.5 million (CHF 2.4 million). Operating revenue increased by 2.7% to reach CHF 101.9 million (CHF 99.2 million).
The high free cash flow allowed the group to almost repay its net interest-bearing debt, which amounted to CHF 2.6 million by September 30, 2005. At the end of the reporting period, compared with March 31, 2005 and after a dividend payment of CHF 3.5 million, equity increased to CHF 101.3 million, now accounting for 55.5% of total assets.
Management expects that the group will achieve the planned revenue growth of around 5% for the full year, thereby outperforming market growth and that net income in the second half year will exceed that of the first semester.
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July 12, 2005 - Carlo Gavazzi: implementation of announced staff reduction in the Computing Solutions Business Unit
Steinhausen, July 12, 2005 - To improve the profitability of its Computing Solutions Business Unit, the Zug-based electronics group Carlo Gavazzi implemented the measures announced at its press and financial analysts’ meeting on June 23, 2005.
The business unit, which is operating exclusively in the USA, reduced its staff by 37 people in order to adapt the production capacity to the current market conditions. This effective reduction of the cost structure should allow the business unit to reach a positive operating profit for the current year, even though the related non-recurring costs will marginally impact the result of the first half-year ending September 30, 2005. |
June 23, 2005 - Carlo Gavazzi: net income improved by 31% - Dividend increase from CHF 2 to CHF 5 proposed Steinhausen, June 23, 2005 – In the financial year ended March 31, 2005, Carlo Gavazzi, the Zug-based electronics group, increased net income from CHF 5.2 million to CHF 6.8 million.
Operating revenue of CHF 201.8 million (CHF 203.8 million), though flat in Swiss francs, rose in local currency by 2%. Efficiency improvements and stabilised operating expenses contributed to an EBIT increase by 18% to CHF 10.0 million (CHF 8.5 million).
Considering the group’s financial performance and its solid balance sheet, the board of directors will propose to the annual shareholders’ meeting to pay a dividend of CHF 5 (CHF 2) per bearer share.
Management is confident that the group will succeed in further improving its market position during the current financial year, though the forecasted economic slow-down in most markets served may temporarily hinder the continued positive performance.
While efficiency improvements at all levels contributed to an increase of the gross profit margin by 1.6 percentage points to reach 41.7%, operating expenses rose by only 0.8%. Net interest-bearing debt was reduced by 52% from CHF 17.4 million to CHF 8.3 million and equity reached 57% of total assets.
Strong Automation Components
While the worldwide market demand for automation components offered by the company grew by approximately 4%, the business unit succeeded in expanding its operating revenue in local currency by 9.6% (8.1% in Swiss francs) from CHF 146 million to CHF 158 million. As a result of efficiency improvements and economy-of-scale effects, operating profit increased by 42% to reach CHF 15.1 million, or 9.6% of revenue compared with 7.3% in the previous year.
Difficult year for Computing Solutions
Strongly affected by the shrinking demand from one large telecom customer, operating revenue of the Computing Solutions Business Unit declined by 18% from USD 43.9 million to USD 36.1 million despite the acquisition of a meaningful number of orders from new customers from the industrial and medical market segments. The lower revenue resulted in a substantial decrease of operating profit and operating profit margin that could not be fully offset by a timely implemented reduction of operating expenses.
Key figures Group (CHF million)
| Income statement | 2004/05 | 2003/04 | % |
|---|
| Bookings | 207.0 | 206.5 | + 0.2 | | Operating revenue | 201.8 | 203.8 | - 1.0 | | EBIT | 10.0 | 8.5 | + 17.6 | | Group net income | 6.8 | 5.2 | + 30.8 | | Cash flow | 10.7 | 10.4 | + 2.9 | | Employees | 1 037 | 999 | + 3.8 |
| Balance sheets (as of March 31) | 2005 | 2004 | % |
|---|
| Net working capital | 52.2 | 46.0 | + 13.5 | | Net interest-bearing debt | 8.3 | 17.4 | - 52.3 | | Shareholders’ equity | 100.8 | 95.9 | + 5.1 | | Total assets | 175.5 | 186.4 | -5.8 |
Key figures business units
| CHF million | 2004/05 | 2003/04 | % |
|---|
| Bookings | | Automation Components | 157.8 | 149.9 | + 5.3 | | Computing Solutions | 49.2 | 56.6 | - 13.1 | | Operating revenue | | Automation Components | 157.7 | 145.9 | + 8.1 | | Computing Solutions | 44.0 | 57.9 | - 24.0 | | Operating profit | | Automation Components | 15.1 | 10.6 | + 42.5 | | Computing Solutions | - 0.7 | 2.1 | - | | Employees | | Automation Components | 867 | 831 | + 4.3 | | Computing Solutions | 164 | 166 | - 1.2 |
 » Press Release |
April 12, 2005 - Carlo Gavazzi: new CEO for Computing Solutions Business Unit Steinhausen, April 12, 2005 - The Zug based electronics group has appointed Mads Lillelund as CEO of its US based Computing Solutions Business Unit.
After majoring in mathematics and physics in Denmark, Mads Lillelund earned business degrees from Baylor University and the American Graduate School of International Management, USA. During his successful professional career he assumed important sales and marketing positions in the telecom infrastructure sectors with AT&T, Brussels and Lucent Technologies, Ireland and New Jersey. He was also instrumental in the operational turnaround at Enterasys Networks, Andover, MA. Mads will take office on April 19, 2005.
Mads Lillelund replaces Jeff Russell, who left the business unit by mutual agreement. |
April 5, 2005 - Carlo Gavazzi: passing away of Honorary Chairman Riccardo Gavazzi
Steinhausen, April 5, 2005 - The Zug based electronics group mourns its Honorary Chairman Riccardo Gavazzi. He passed away unexpectedly at the age of 79 on April 3, 2005.
In 1957, at the age of 32, Riccardo Gavazzi took the helm of the company from his father and founder. As a visionary and entrepreneur he expanded the Italian based activities of the company continuously into a global industrial group. He was a charismatic leader who successfully directed the group with much care and intellect.
Riccardo Gavazzi graduated in electrical engineering from the Politecnico of Milan in 1947 and acted as the group's managing director until 1991 and thereafter as chairman of Carlo Gavazzi Holding AG until 1996 when he retired due to statutory age restrictions. He was subsequently elected Honorary Chairman by the board of directors.
Riccardo Gavazzi ceased to be active in the group some time ago and also the family completely withdrew from their positions within the group in July of last year. |
March 1, 2005 - Carlo Gavazzi: Hanspeter Schraner appointed CFO
Steinhausen, March 1, 2005 - The Zug based electronics group has appointed Hanspeter Schraner (37) as Chief Financial Officer of the group. He will assume office at the beginning of May 2005.
Hanspeter Schraner, certified accountant, graduated in economics from the University of St. Gallen, and is currently employed as Head of Corporate Reporting by Sarna Kunststoffholding AG, Sarnen (CH). Prior to this, as a Managing Consultant, he headed finance transformation projects for IBM Business Consulting Services, Zurich (previously PwC Consulting). Earlier positions include five years of tenure with PricewaterhouseCoopers in San Jose (USA) and Zurich. David Walther, presently CFO of the group, has left the company at the end of February 2005. |
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