November 17, 2006
» Carlo Gavazzi: Strong performance continues - First semester EBIT increases by 66% to CHF 7.8 million | June 22, 2006
» Carlo Gavazzi: further significant earnings improvement - Net income rose by 79% to reach CHF 12.2 million. | April 6, 2006
» Carlo Gavazzi: new President for Computing Solutions Business Unit |
November 17, 2006 - Carlo Gavazzi: Strong performance continues - First semester EBIT increases by 66% to CHF 7.8 million
Steinhausen, November 17, 2006 - The Zug-based electronics group improved its performance significantly in the first semester of the current financial year, ended September 30, 2006.
While bookings rose by 8.3% to CHF 114 million (in local currency +7.1%) and operating revenue increased by 4.6% to CHF 107 million (in local currency +3.4%), net profit improved by 49% to CHF 5.2 million over the prior year period. For the full year the group expects a moderate increase in operating revenue and a full achievement of its profit targets.
Improvements of manufacturing processes and economy of scale effects hiked the gross profit margin to 45%, up 2.4 percentage points over the same period of the previous year and, therefore, the ongoing market price erosion was more than offset. Operating expenses as a percentage of sales were reduced slightly and, consequently, the EBIT margin improved from 4.7% to 7.3% of revenue.
At September 30, 2006, equity amounted to CHF 116.6 million, an increase of CHF 5.0 million compared with March 31, 2006 and equalling 60% of total assets. After payment of the share capital reduction on October 17, 2006, the pro forma equity as per September 30, 2006 amounts to 54% of total assets.
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June 22, 2006 - Carlo Gavazzi: further significant earnings improvement - Net income rose by 79% to reach CHF 12.2 million.
Steinhausen, June 22, 2006 – In the financial year ended March 31, 2006, Carlo Gavazzi, the Zug-based electronics group, increased operating revenue by 7.3% from CHF 201.8 million to CHF 216.5 million.
Thanks to economy-of-scale effects and efficiency improvements, EBIT rose by 56% to CHF 15.6 million (previous year: CHF 10.0 million) and net income increased by 79% to CHF 12.2 million (CHF 6.8 million).
In consideration of the group’s solid balance sheet and further improved financial performance, the board of directors will propose to the annual shareholders’ meeting to reduce the nominal value of the registered shares from CHF 10.00 to CHF 3.00 and the nominal value of the bearer shares from CHF 50.00 to CHF 15.00. The company contemplates to repay the share capital from its liquid funds. Under the assumption that current demand will not fundamentally change in 2006/07, management expects that operating revenue will grow at a rate comparable with the one of the reporting period and that net income will further improve in the current year.
The free cash flow increased by 84% to CHF 17.5 million (CHF 9.5 million). Net interest-bearing debt, which amounted to CHF 8.3 million at the end of previous financial year, was fully offset in the reporting period and the group achieved a net cash position amounting to CHF 5.1 million at year-end. Equity rose to CHF 111.6 million (CHF 100.8 million) or 58.4% of total assets. The achievement of a ROE of 10.9% marks the early achievement of the mid-term goal announced two years ago.
Strongly performing Automation Components
Automation Components, with a growth of operating revenue of 8.4% from CHF 158 million to CHF 171 million, again outpaced the increase in global market demand, estimated at 4%. Thanks to operational efficiency improvements and economy-of-scale effects, gross profit margin increased by 1.8 percentage points. Despite major investments in expanding manufacturing capacity in China and in strengthening sales and marketing activities in the strategic regions South-East Asia and North America, operating profit increased by 16% to reach CHF 17.5 million (CHF 15.1 million) or 10.2% of revenue (9.6%).
Computing Solutions returned to operating profitability
The operating revenue of the business unit stabilised at USD 36 million, the level of the previous financial year. Revenue lost due to the exit from non-strategic, low-margin projects was offset to a large extent by higher sales to strategic market segments. Thanks to the drastically reduced cost base, the business unit achieved the targeted positive operating profit for the full year.
Change in management
Hanspeter Schraner, Chief Financial Officer, will leave his position at the end of June 2006 to pursue another professional opportunity. Anthony M. Goldstein, Chartered Accountant, FCA, responsible since 1982 for the group’s financial reporting, will assume the position of Group Controller as of July 1.
Key figures Group (CHF million)
| Income statement | 2005/06 | 2004/05 | % |
|---|
| Bookings | 216.8 | 207.0 | + 4.7 | | Operating revenue | 216.5 | 201.8 | + 7.3 | | EBIT | 15.6 | 10.0 | + 56.0 | | EBIT-Margin | 7.2 % | 5.0 % | - | | Group net income | 12.2 | 6.8 | + 79.4 | | Cash flow | 15.5 | 10.7 | + 44.9 |
| Balance sheets (as of March 31) | 2006 | 2005 | % |
|---|
| Net working capital | 52.3 | 52.2 | + 0.2 | | Net working capital | 111.6 | 100.8 | + 10.7 | | Total assets | 191.2 | 175.5 | + 8.9 | | Equity in percent of assets | 58.4 % | 57.4 % | - |
Key figures business units
| CHF million | 2005/06 | 2004/05 | % |
|---|
| Bookings | | Automation Components | 171.5 | 157.8 | + 8.7 | | Computing Solutions | 45.4 | 49.2 | - 7.7 | | Operating revenue | | Automation Components | 171.0 | 157.7 | + 8.4 | | Computing Solutions | 45.5 | 44.0 | + 3.4 | | Operating profit | | Automation Components | 17.5 | 15.1 | + 15.9 | | Computing Solutions | 0.6 | -0.7 | - |
 » Press Release |
April 6, 2006 - Carlo Gavazzi: new President for Computing Solutions Business Unit
Steinhausen, April 6, 2006 – The Zug based electronics group has appointed Chris Boutilier as President of its US based Computing Solutions Business Unit.
Mr Boutilier succeeds Mads Lillelund, who will leave his position as per April 14, 2006, but will continue to be associated with Computing Solutions as a director.
Chris Boutilier began his career at Carlo Gavazzi Computing Solutions in 1989 as an engineer and worked his way through the company’s ranks. From 1995 to 2005, he headed the company’s West coast operations and was promoted to COO in July 2005. In this position, Mr Boutilier directed the operations of Carlo Gavazzi Computing Solutions. Chris Boutilier is highly focused on the customer needs and brings to this role a wealth of experience in meeting their requirements.
Werner S. Welti, Chairman of the Board of Carlo Gavazzi Holding AG, said: “The appointment of Mr Boutilier as President of Carlo Gavazzi Computing Solutions will ensure that the company remains loyal to its strategic plan and continues to strengthen its financial position.” |
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