November 20, 2009
Carlo Gavazzi: challenging market environment
- 2009-EN-Interim-Report-Carlo-Gavazzi.pdf (PDF – 262 KB)
Steinhausen, November 20, 2009 – Due to the difficult market conditions, operating revenue of the Zug-based electronics group declined by 25.3% from CHF 94.5 million to CHF 70.6 million in the first semester of the current financial year ended September 30, 2009. In Euros, the percentage decrease amounted to 20.6%. The gross profit margin increased by 1.6 percentage points from 52.4% to 54.0% thanks to enhanced manufacturing efficiency and operational improvements while operating expenses decreased by 11.7% in Swiss francs. Nonetheless, EBIT decreased by 65.3% to CHF 3.3 million and net income declined by 78.1% to CHF 1.6 million.
Equity decreased from CHF 106.9 million at April 1, 2009, to CHF 104.2 million, now representing 71.6% of total assets compared with 68.3% at the beginning of the period, evidencing the group’s financial solidity. The net cash position improved from CHF 29.7 million at April 1, 2009, to CHF 33.5 million (including the effect from the disposal of the Computing Solutions Business Unit). The Carlo Gavazzi share price increased by 67% from CHF 90 at the beginning of the period to reach CHF 150 at the end of the reporting period, clearly outpacing the representative SPI Extra index which rose by 37%.
The first semester of the current financial year was characterized by the ongoing contraction of demand in the markets Carlo Gavazzi serves. However, the company strengthened its ability and flexibility to cope with the adverse and volatile market conditions by lowering its break-even point, by implementing cost-cutting programs and by strengthening its product-portfolio.
The cautious capital spending by customers in the first six month is expected to continue also in the second semester of the financial year. The lean and efficient structures in place will allow the group to strongly benefit from the increased market demand once it materializes. Consequently, Carlo Gavazzi looks forward to the growth of operating revenue and net income in the second semester of the financial year.
July 23, 2009
Carlo Gavazzi: New Composition of the Board of Directors
- 2009-07-23-EN-Press-Release-Carlo-Gavazzi.pdf (PDF – 20 KB)
Steinhausen, July 23, 2009 – At today’s annual shareholders’ meeting of Carlo Gavazzi Holding AG, the two directors Federico Foglia and Stefano Premoli Trovati, standing for re-election, and Giovanni Bertola as a new member, were elected for a period of one year. Following the proposal of a group of public shareholders to join the board, Valeria Gavazzi was elected as a new member for a period of one year. Discharge was declined to the retiring board members Alessandro Berlingeri, Felix Ehrat, Dominique Fässler and Giulio Pampuro. All other items of the agenda were approved by the shareholders.
At the board of directors’ meeting following the shareholders’ meeting, Valeria Gavazzi was appointed chairperson of the board. Giovanni Bertola, with his professional experience at ABB and in other industrial companies, was appointed vice-chairman and was delegated by the board to co-ordinate all industrial operations of the group.
June 23, 2009
Carlo Gavazzi coped well in an adverse economic environment Implementation of the strategic focus on Automation Components
- 2009-06-23-EN-Press-Release-Carlo-Gavazzi.pdf (PDF – 25 KB)
Steinhausen, June 23, 2009 – In the financial year ended March 31, 2009, Carlo Gavazzi, the Zug-based electronic group, coped well in an adverse economic environment even though, due to the reduced market demand in the second semester, operating revenue from continuing operations decreased by 11% from CHF 196.6 million to CHF 174.9 million. Gross profit margin improved from 52.2% to 52.4% as a result of efficiency improvements and the change in product mix towards promising markets in the renewable energy and heating, ventilation and air-conditioning (HVAC) sectors. As a consequence of the decreased revenue and, notwithstanding the implementation of strict cost measures, EBIT declined from CHF 25.3 million to CHF 16.2 million. Earnings from continuing operations decreased from CHF 15.8 million to CHF 12.2 million with a satisfactory return on equity of 11.4%.
In the past financial year, Carlo Gavazzi divested substantially all assets of its Computing Solutions Business Unit as already communicated. This will allow the group to focus all efforts on Automation Components. The divestiture has been accounted for as discontinued operations.
Carlo Gavazzi’s strategy to increase sales through internal growth and by means of acquisitions in order to lay the foundations for sustained long-term success remains unchanged despite the current adverse economic environment.
The group has put in place all necessary actions and is in a position to flexibly adapt structures and capacities to the market conditions which are likely to remain unfavourable.
Shareholders’ equity at March 31, 2009 amounted to CHF 106.9 million or 68% of total assets. The financial position of the group has further improved with its net cash position increasing from CHF 21.1 million to CHF 29.7 million. Accordingly, the board of directors will propose to the annual shareholders’ meeting the payment of a dividend of CHF 5 (CHF 10) per bearer share, corresponding to a payout ratio of 29% of earnings from continuing operations.
Carlo Gavazzi’s core business – Automation Components
Automation Components coped well in an adverse economic environment and achieved a satisfactory result. Bookings and operating revenue in Euro decreased by 7.2% and 6.5%, respectively. While sales in North America only slightly declined by less than 4% in local currency, revenue in the European region dropped by almost 6%, mainly due to the severe economic downturn in Iberia. In South-East-Asia the business unit experienced an 11% decrease of sales as a result of strongly declining exports of local manufacturers to Europe and the US.
Thanks to the comprehensive portfolio in the area of energy management, this product line achieved a growth of more than 35% over the previous year. The continuous focus on priority markets paid off. Sales to these segments increased in excess of 3% with new products to the heating, ventilation and air-conditioning (HVAC) and the renewable energy markets growing by more than 40% and 20%, respectively.
Following international trends, the board of directors has decided to change the accounting principles currently used by the group from US GAAP to IFRS commencing with the financial year 2010/11.
Key figures group (CHF million)
|EBIT margin||9.3 %||12.9 %||-|
|Earnings from continuing operations||12.2||15.8||-22.8|
|Loss/gain from discontinued operations||-4.2||1.0||-|
|Shareholders’ net income||8.0||16.8||-52.4|
|Balance sheets (as of March 31)||2009||2008||%|
|Net working capital||43.2||47.3||- 8.7|
|Equity in percent of assets||68.4%||63.1%||-|
|*||2008/09 figures reflect the results of continuing operations|
|**||2007/08 figures have been restated to reflect the effect of the divestiture of the Computing Solutions Business Unit|
Key figures Automation Components (EUR million)
|ROS (EBIT/Revenue in %)||10.2||13.4||-|
June 18, 2009
Carlo Gavazzi: Change in Board Composition
- 2009-06-18-EN-Press-Release-Carlo-Gavazzi.pdf (PDF – 21 KB)
Steinhausen, June 18, 2009 – The composition of the board of directors of Carlo Gavazzi Holding AG will significantly change effective July 23, 2009, the date of the forthcoming annual general meeting. Dr. Giulio Pampuro, first elected in 2005 and chairman of the group since 2007, Dr. Alessandro Berlingieri, first elected in 2004 and acting CEO of the Automation Components Business Unit during the period from November 2008 to June 2009 and Dr. Felix R. Ehrat, first elected in 2007, have decided not to seek a further term in office and will therefore be leaving the board. This decision is related to the conclusion of the mission of the current board of directors which has seen the definition of a growth strategy for the Automation Components Business Unit, the disposal of the Computing Solutions Business Unit and the recent recruitment of the new CEO for the Automation Components Business Unit who has the task to implement the defined strategy.
In the opinion of the board members concluding their mission, the implementation of the new growth strategy should now be overseen by a newly composed board of directors as effectively as possible. With this aim, the board of directors will propose to the shareholders’ meeting the reduction of the statutory minimum number of board members from 5 to 3 members. The composition of the new board of directors to be proposed to the shareholders meeting will be communicated shortly.
The board of directors and the management wish to thank the retiring board members for their critical contribution to the strategic repositioning of the Carlo Gavazzi Group.
May 19, 2009
Carlo Carlo Gavazzi: New CEO for Automation Components
- 2009-05-19-EN-Press-Release-Carlo-Gavazzi.pdf (PDF – 19 KB)
Steinhausen, May 19, 2009 – The Zug based electronics group has appointed Vittorio Rossi (51), Italian citizen, as new CEO of the Automation Components Business Unit. Mr Rossi will assume office on June 8, 2009, succeeding Alessandro Berlingieri, who has been acting CEO since November 2008.
Vittorio Rossi graduated as electrical engineer from the Politecnico of Milan and developed his professional career during 20 years with the Siemens Group up to the position of CEO and chairman of Siemens Italy. In 2005, he became CEO of Gewiss SpA, a company active in electrical equipment and systems, listed on the Milan stock exchange.
The board of directors of Carlo Gavazzi Holding AG expresses its appreciation to Alessandro Berlingieri for performing the role of acting CEO in the interim period.
March 31, 2009
Carlo Gavazzi: Divestiture of Computing Solutions
- 2009-03-31-EN-Press-Release-Carlo-Gavazzi.pdf (PDF – 20 KB)
Steinhausen, March 31, 2009 – With the divestiture of its US based Computing Solutions Business Unit, the Carlo Gavazzi Group will now focus on its core activity, Automation Components, in line with its strategy which has been announced earlier. Substantially all of the assets and liabilities of Computing Solutions have been sold to the Austrian company System Industrie Electronic AG (S.I.E.), headquartered in Lustenau, for a total cash consideration of EUR 5.75 million. This transaction is not expected to produce any material gain or loss and will close by latest April 6, 2009. At the same time the operational responsibility for Computing Solutions will be taken over by the acquirer.
S.I.E. is active in embedded computing, i.e. professional computer hardware and dedicated services. The financial result of Carlo Gavazzi Holding AG for the year 2008/09 will be negatively impacted by the requirement to write-off goodwill attached to the business unit in the amount of USD 4.7 million.
March 10, 2009
Steinhausen, March 10, 2009 – After seven years of service as a member of the board of directors of Carlo Gavazzi Holding AG, Dominique Fässler has decided not to stand for re-election at the forthcoming shareholders’ meeting scheduled for July 23, 2009. Dr. Giulio Pampuro, chairman of the board of directors, comments that Dominique Fässler has made significant contributions during his tenure in identifying and streamlining the strategy of the Carlo Gavazzi Group. On behalf of the board of directors and the management Dr. Pampuro has expressed his regrets and, at the same time, best wishes to Dominique Fässler.