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Press information 2010

November 23, 2010

Carlo Gavazzi: improvement of all key figures

Steinhausen, November 23, 2010 – Market conditions in all regions served by Carlo Gavazzi improved substantially in the reporting period. As a result of the increased demand from customers and the launch of new products, the Zug-based electronics group achieved a strong result in the first semester of the current financial year ended September 30, 2010. Compared with the same period of the previous period, bookings rose by 50% to CHF 108.9 million and revenues by 29% to CHF 90.8 million, As a consequence of the revenue increase, EBIT improved from CHF 3.4 million to CHF 11.1 million, reaching 12.2% (versus 4.8% in the previous period) of revenue, and net income rose from CHF 1.6 million to CHF 7.5 million.

These positive results, reported in Swiss francs, were achieved despite the negative currency effect which impacted revenue, EBIT and net income by around 10%.

As of today, it is difficult to assess whether the favorable economic climate experienced in the first half-year will persist in the second semester. For the full year, the group remains cautiously optimistic and is determined to achieve a financial performance well above the one of the previous year. 

Carlo Gavazzi has changed the group’s accounting principles from US-GAAP to IFRS starting with the current financial year. The Interim Report, available on the group’s website, reflects the impact of these changes and includes all the details in its financial section.

July 27, 2010

Carlo Gavazzi: Shareholders’ meeting – All agenda points approved

Steinhausen, July 27, 2010 – At today’s annual shareholders’ meeting of Carlo Gavazzi Holding AG, the four directors Valeria Gavazzi, Giovanni Bertola, Federico Foglia and Stefano Premoli Trovati, standing for re-election, and Daniel Hirschi as new member, were elected for a period of one year. As proposed by the board, Valeria Gavazzi was elected chairman and Daniel Hirschi was appointed representative of the bearer shareholders in the board of directors. 

All other items of the agenda were also approved by the shareholders.

July 6, 2010

Carlo Gavazzi issues Annual Report and Invitation to the Annual General Meeting

Steinhausen, July 6, 2010 – The Zug-based electronics group Carlo Gavazzi has issued its Annual Report 2009/10 as well as the invitation and the agenda for the Annual General Meeting 2010 which will take place on July 27, 2010, 09:45 a.m., at the Congress Center Metalli in Zug. For the Annual General Meeting 2010, in addition to its reelection, the board of directors of Carlo Gavazzi Holding AG proposes that Mr. Daniel Hirschi be newly elected as a member of the board of directors and proposes him as future representative of the bearer shareholders. As for the key figures for the business year 2009/10, Carlo Gavazzi Holding AG refers to its press release of June 24, 2010.

June 24, 2010

Carlo Gavazzi: Net income at previous year's level – Sales increase in second half

Steinhausen, june 24, 2010 Zug-based electronics group Carlo Gavazzi has posted good results for the financial year despite a difficult market environment. The group's net income reached the previous year’s level of CHF 8 million. The share price increased by 66.7%. The Board of Directors is proposing a dividend of CHF 5 per bearer share. Carlo Gavazzi achieved sales of CHF 150 million (previous year CHF 175 million; - 11% in local currency) for the financial year to 31st March 2010. Sales were 12 % higher in the second half of the year than in the first semester. Thanks to productivity gains and changes to the client mix, the gross profit margin improved again, from 52.4% to 54.5%. EBIT reached CHF 13.0 million (previous year CHF 16.2 million), while the EBIT margin remained practically the same as the previous year at 8.7%. The financial year closed with a net income of CHF 8.0 million in line with last year’s result, mainly thanks to a strong increase in the second semester.

With its net cash position improving to CHF 44.4 million (previous year CHF 29.7 million), and an equity ratio of 69.3%, Carlo Gavazzi has a very sound financial structure. 

The company’s share price rose 66.7% during the reporting period. The Board of Directors is proposing a dividend of CHF 5 per bearer share to the AGM.

New sales offices and subsidiaries in China and Mexico
Sales declined in Europe and even more in the USA, especially in the first half of the year. Incoming orders began to recover in the second half-year in both areas. In November 2009 Gavazzi opened a new subsidiary in Mexico, which began operations in the final quarter of the financial year. 

Asia-Pacific had a very positive business development, with sales increasing by 20% on the back of growth in all key countries. Two sales offices were opened in Wuhan and Guangzhou in order to strengthen geographical coverage in China.

Growth in energy management – declining performance in industrial automation and building automation
While sales of the traditional product range decreased 20% on average, sales of energy management products rose by around 40%. Within the company’s priority markets, the renewable energy sector experienced particularly good sales growth. By contrast, the current decline in demand for real estate affected performance in the building automation sector. 

The industrial automation sector was also impacted by the difficult economic environment, with sales in this area decreasing by around 20%. Although the future development of the automation market remains uncertain, initial signs of recovery in the energy management sector have been evident since the end of 2009, suggesting that sustained growth can be expected.

Growth strategy
Gavazzi is making major endeavours to developing new products, including new solutions for building automation, e.g. door and lift controls, as well as developing new markets, e.g. renewable energy. The company is also confident that its efforts to develop new markets in Latin America and Asia will be successful. The strong financial basis also allows Carlo Gavazzi to screen possible acquisitions on a regular basis. The aim of any acquisition would be to strengthen the potential of Gavazzi’s product portfolio through new growth and additional earnings. The company expects the positive performance of the second half to continue in the new financial year.

Acknowledgments
The Zug based company was founded in 1931 and was recently hailed as one of 100 best family controlled companies in Switzerland.

Felix Stoecklin, Head of Corporate Communications, has decided to retire effective 31st December, 2010. The company wishes him a wonderful and serene future and thanks him for his life-long lasting support to Carlo Gavazzi over the past 35 years.

Consolidated key figures

Income statement
2009/102008/09%
Bookings 152.7 172.2 -11.6
Operating revenue 149.9 174.9 -14.4
EBIT 13.0 16.2 -19.8
EBIT margin 8.7 % 9.3 % -
Earnings from continuing operations 8.0 12.2 -34.4
Loss/gain from discontinued operations - -4.2 -
Shareholders’ net income 8.0 8.0 -
Cash flow 13.0 17.9 -27.4
Balance sheets (as of March 31) 2010 2009 %
Net working capital 30.8 43.2 - 28.7
Shareholders' equity 107.9 106.9 +0.9
Total assets 155.6 156.4 -0.5
Equity in percent of assets 69.3% 68.4% -

If you have any questions, please contact:

Rolf Schlaepfer
Hirzel.Neef.Schmid.Konsulenten, Zurich
Phone: +41 43 344 42 42
E-mail: rolf.schlaepfer@konsulenten.ch

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