Media

Press information 2012

December 4, 2012

Malta's President George Abela visits Carlo Gavazzi site

November 26, 2012 - George Abela, President of the Republic of Malta, visited Carlo Gavazzi's Zejtun production site in Malta. In her speech, delivered in Maltese, Valeria Gavazzi, Chairman of the Carlo Gavazzi Group, stated: " Carlo Gavazzi stands for quality and innovation at a reasonable cost. And for solutions that are tailored to the individual needs of our customers. I am convinced that the quality and the constant innovation our employees in Zejtun deliver every day are the key to future success." The production site in Zejtun employs several hundred people making the Carlo Gavazzi Group one of the biggest companies in Malta. As a competence center for solid state relays, soft starters and switches the site plays an important role in Carlo Gavazzi's world wide production network.

From left to right: Charles Brincat, George Abela, Valeria Gavazzi

More images

 

November 22, 2012

Carlo Gavazzi Group's 1st half 2012/13 result:
Net income of CHF 5.8 million − solid growth outside Europe

 

  • Operating revenue of CHF 69.2 million (-6.5% vs. 1st half year 2011/12)
  • Financial crisis and stagnating renewable energy market affect sales in Europe
  • Growth in North America and Asia-Pacific
  • Gross margin increases to 56.2% (+0.4 percentage points)
  • Net income of CHF 5.8 million (-18.3%)
  • Strong net cash position of CHF 46 million despite dividend payment
  • On-going investments in R&D and distribution network in emerging markets
  • Imminent launches of new products in Building and Industrial Automation
  • Aim for sales to stabilize and net income to remain at least at 1st semester's level

 

Steinhausen, November 22, 2012 - During the first six months of the 2012/13 fiscal year, the Zug-based electronic group Carlo Gavazzi achieved an operating revenue of CHF 69.2 million (6.5% below last year‘s CHF 74.0 million). Business was impacted by both lower demand in countries heavily affected by the current euro zone crisis and the stagnating renewable energy market. Bookings remained stable at CHF 72.7 million. The book-to-bill ratio increased to 1.05 from 0.98 last year.

Due to the volume reduction, gross profit was CHF 2.4 million below the same period of last year; however, thanks to the effective and efficient management of the whole supply chain, the gross margin of 56.2% increased from last year’s 55.8%. In accordance with the Group's on-going policy to invest in the continued improvements of the product portfolio and in the expansion of the sales network in fast growing markets outside Europe, operating expenses of CHF 31.4 million decreased by only 1.9% versus the same period of last year, resulting in operating profit (EBIT) decreasing by 19.4% to CHF 7.5 million compared to CHF 9.3 million in the previous year.

The Group reached a net income of CHF 5.8 million (- 18.3%) against CHF 7.1 million in the previous year. Despite a dividend pay-out of CHF 8.5 million, the Group‘s net cash position was CHF 46.0 million (CHF 49.2 million per March 31, 2012), once more showing Carlo Gavazzi‘s ability to generate cash. At September 30, 2012, shareholder‘s equity stood at CHF 94.1 million, giving an equity ratio of 71.7%.

Already 30% of sales outside of Europe

The business slowdown in the euro zone impacted mainly Southern European countries such as Italy or Spain. As a result, the European region recorded a decrease in sales of 12.4% in local currency. Independently from the external economic development, Carlo Gavazzi continues to implement its long-term strategy of strengthening its global presence in fast growing markets. Thanks to over proportional growth in markets such as China, USA and Mexico, sales in local currency in the Group‘s other two key regions increased by 2.0% in Asia-Pacific and 2.4% in North America compared to the previous year. Geographical revenue distribution continues to broaden as planned. Over the last two years, the share of sales outside of Europe has expanded from 21% to more than 30%.

Focus on growth markets

To optimally allocate its resources, the Group focuses its marketing and sales efforts on priority markets with above-average growth potential. Sales in these markets, net of energy markets, were 3.9% above the same period of last year. Doors & Entrance and Food & Beverage recorded double digit growth versus the previous year, respectively 16% and 23%.

Sales of Sensors increased by 3.4% and in particular capacitive sensors grew by more than 16% versus last year thanks to several specific initiatives with the OEM customers in both the Agriculture and the Heating, Ventilation and Air Conditioning (HVAC) market. Energy management, comprising products such as grid analysers and energy meters, confirmed to be a solid stream of revenue. Thanks to the comprehensive product range, the sales were almost in line with last year (-2.5%). During the last 12 to 15 months, sales of efficiency monitoring products for photovoltaic plants have suffered from the stagnating renewable energy market and, as a consequence, revenues decreased by almost 50% compared to the first half of last year. Due to the enlargement of the product range towards selected applications in the vertical markets, such as HVAC, the sales of soft starters grew by 5.3% versus the same period of last year. On the other hand, sales of solid state relays decreased by 5.2%, mainly because of a general slowdown in the plastics industry across Central Europe and Asia. Fieldbus sales decreased by 24% versus last year as investments in building automation projects such as car park systems were lower and customers postponed some orders because of the imminent launch of a new fieldbus platform. Furthermore, sales of safety relays and signalling devices for railways were 29% below the same period of the previous year.

Outlook

The economic scenario is still complex, however, despite the global slowdown, the situation for Carlo Gavazzi appears positive in North America and Asia-Pacific. In Europe, the financial crisis continues to affect the business environment, thereby impacting negatively almost all sectors. The Group‘s efforts will be directed at improving the geographic coverage (e.g. starting direct sales in Brazil), Research and Development, as well as renewing the product portfolio such as the launch of the Universal Web Platform for Building Automation or the new photo sensors for Industrial Automation. Based on these initiatives Carlo Gavazzi is confident that sales can be stabilized in the second half. Despite on-going investments in R&D and the expansion of its distribution network, the Group aims for net income to remain at least at the same level as in the first semester of the fiscal year.

Consolidated key figures

Income statement 1. HY 2012/13 1. HY 2011/12 %
Bookings 72.7 72.8 -0.1
Operating revenue 69.2 74.0 -6.5
EBITDA 9.3 11.2 -17.0
EBIT 7.5 9.3 -19.4
EBIT margin 10.8% 12.5%  
Net income 5.8 7.1 -18.3
Cash flow 7.6 9.0 -15.6
Additions to fixed assets 1.2 0.8 +50.0
 
Balance sheet 30.9.2012 31.3.2012  
Net working capital 33.0 30.9 +6.8
Net cash position 46.0 49.2 -6.5

For further information please contact:

Rolf Schläpfer
Hirzel.Neef.Schmid.Konsulenten
Phone +41 43 344 42 42
E-Mail rolf.schlaepfer@konsulenten.ch

October 12, 2012

Carlo Gavazzi announces preliminary half year 2012/13 figures

Steinhausen, October 12, 2012 – The Zug-based electronic group Carlo Gavazzi achieved in the first half year 2012/13 ended on September 30, 2012, revenues of around CHF 69 million (first half of business year 2011/12: CHF 74 million). The company anticipates EBIT and net income to be approx. 20% lower than in the same period of last year (first half of business year 2011/2012: EBIT CHF 9.3 million and net income CHF 7.1 million).

The interim result was influenced by lower demand in countries heavily affected by the current euro zone crisis particularly Italy and Spain, two of the Group's key markets. Revenues in Asia-Pacific and the Americas increased by around 2% each. In order to strengthen its future position, the Carlo Gavazzi Group continues to invest substantially in Research and Development as well as in expanding its distribution network in emerging markets outside Europe. This is also reflected in the fact that the book-to bill-ratio increased to 1.05.

The reporting of these figures is based on the SIX Swiss Exchange Directive on Ad hoc Publicity. Carlo Gavazzi will disclose detailed interim figures on November 22, 2012

 

About Carlo Gavazzi:
Carlo Gavazzi is a publicly quoted international electronics group (SIX: GAV) with activities in the design and marketing of electronic control components for factory and building automation.

For further information please contact:
Rolf Schläpfer
Hirzel.Neef.Schmid.Konsulenten
Phone +41 43 344 42 42
E-Mail rolf.schlaepfer@konsulenten.ch

October 1, 2012

Meeting with Malta's President George Abela

September 19, 2012 - Valeria Gavazzi, Chairman of the Carlo Gavazzi Group, and Daniel Hirschi, member of the Board of Directors, and Charles Brincat, General Manager of the Groups production site in Zejtun, Malta, met with George Abela, President of the Republic of Malta. The production site in Zejtun employs several hundred people making the Carlo Gavazzi Group one of the biggest companies in Malta.

From left to right: Charles Brincat, George Abela, Valeria Gavazzi, Daniel Hirschi

July 26, 2012

Carlo Gavazzi shareholders’ meeting – All agenda points approved

Steinhausen, July 26, 2012 – At today’s annual shareholders’ meeting of Carlo Gavazzi Holding AG, the five Directors Valeria Gavazzi, Giovanni Bertola, Federico Foglia, Stefano Premoli Trovati and Daniel Hirschi were re-elected for another period of one year. As proposed by the Board, Valeria Gavazzi was elected Chairman and Daniel Hirschi was elected as representative of the bearer shareholders in the Board of Directors.

Shareholders also approved distribution of an ordinary dividend of CHF 12.00 per bearer share and CHF 2.40 per registered share.

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

 

About Carlo Gavazzi:
Carlo Gavazzi is a publicly quoted international electronics group (SIX: GAV) with activities in the design and marketing of electronic control components for factory and building automation.

Please visit our website: www.carlogavazzi.com


For further information please contact:
Rolf Schläpfer
Hirzel.Neef.Schmid.Konsulenten
Phone +41 43 344 42 42
E-Mail rolf.schlaepfer@konsulenten.ch

July 3, 2012

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

Steinhausen, July 3, 2012 – The electronic group Carlo Gavazzi Holding AG has issued its Annual Report 2011/12 as well as the invitation and the agenda for the Annual General Meeting 2012, to take place on July 26, 2012, 10:30 a.m., at the Parkhotel in Zug.

The board of directors of Carlo Gavazzi Holding AG proposes the re-election of its members for another one-year term.

As for the key figures for the business year 2011/12, Carlo Gavazzi Holding AG refers to its media release of June 28, 2012.

Full access to all the above mentioned information can be found in the documents available for downloading on the company's web site at www.carlogavazzi.com

The annual report 2011/12 is available on:
http://www.carlogavazzi.com/en/investors/annual-report.html

The invitation and agenda for the Annual General Meeting 2012 is available on:
http://www.carlogavazzi.com/en/investors/financial-calendar.html

Documents can also be ordered from Carlo Gavazzi Holding AG, rolf.schlaepfer@konsulenten.ch
(Phone: +41 43 344 42 42, Fax +41 43 344 42 40).

June 28, 2012

Carlo Gavazzi achieves solid result in 2011/12 despite very challenging environment

 

  • Operating revenue of CHF 142.8 million
  • CHF/€ exchange rate affects top line by 9.4%
  • Revenue in local currency decrease of 13.3% mostly stemming from solar energy (-10.8%)
  • Stable core business
  • Further expansion in emerging markets
  • Net income reaches CHF 16.8 million – exceeding five and ten year average
  • Equity ratio increases from 67% to 73%
  • Dividend of CHF 12.00 per bearer share proposed to AGM

 

Steinhausen, June 28, 2012 – Despite the very challenging economic and market environment, Zug-based electronic group Carlo Gavazzi achieved a solid result in the 2011/12 fiscal year. The world economic situation developed unevenly: automation markets in Europe were most affected, while business activity increased in North America and in Asia-Pacific. Highly volatile exchange rates of the Swiss Franc against the Euro contributed to a decrease in operating revenues of 9.4% while overall currency effects lead to a decline of 8.2%. Following last year’s boom in renewable energy, this business was very negatively impacted by government policy changes in all European key markets. Priority markets both in building and industrial automation grew by more than 5% compared with the previous year thanks to the successful introduction of new products and dedicated initiatives across the regions.

Overall, the Group achieved operating revenues of CHF 142.8 million. Total sales decreased by 13.3% in local currency (-21.5% in Swiss Francs), essentially because of the decline in renewable energy products (-10.8%). The Group's core business – excluding especially the highly volatile solar energy sector – remained stable. Gross profit improved by 0.9 percentage points from 54.2% to 55.1%, mainly thanks to tight cost control across the whole supply chain.

To strengthen its presence in fast growing economies, the Group continues to expand in countries such as China, Mexico and Taiwan. In addition, R&D efforts have been enhanced to provide customers worldwide with a broader range of innovative products.

Net income in 2011/12 reached CHF 16.8 million primarily from operating activities. While this result is lower than in the previous year, it clearly exceeds both the five and ten-year average.

Cash flow reached CHF 20.1 million, confirming the Group’s strong cash generation capacity.

Following the distribution of an extraordinary jubilee dividend last year, the Group’s net cash position decreased slightly from CHF 55.1 million to CHF 49.2 million. As at March 31, 2012, shareholder’s equity stood at CHF 96.3 million, giving an equity ratio of 72.9%, i.e. 5.8 percentage points more than last year.

For many years Carlo Gavazzi has maintained a policy of distributing a significant part of net income to shareholders. The Board of Directors is therefore proposing to the annual shareholders’ meeting to approve distribution of an ordinary dividend of CHF 12.00 per bearer share and CHF 2.40 per registered share.
 

Strong sales in Asia and North America
All regions were impacted by the challenging economic and market conditions. While sales decreased in Europe, they grew in both North America and Asia-Pacific, leading to a broader distribution of sales worldwide. Revenues in Europe fell by 17.8% in local currency. This decline was driven by a combination of several factors: recession in a number of key countries such as Spain, much lower demand in the automation sector and a significant contraction in renewable energy business.

In North America, sales and marketing activities in both building and industrial automation produced growth of 12.3% versus the previous year. The Mexican sales company achieved more than 50% year-on-year growth thanks to the development of its distribution network. Increasing demand for building automation products was the main drive for the 4.9% year-on-year increase in sales in Asia-Pacific where growth in local currency was achieved in the entire area.

Thanks to dynamic growth outside Europe, the geographical distribution of revenue continues to broaden: sales outside Europe expanded from 21% of total revenues last year to 25%, to which North America and Asia-Pacific contributed 15% and 10% respectively.
 

Solid revenue from priority markets
Despite the difficult environment in Europe, revenue in priority markets performed significantly better than overall sales, confirming the effectiveness of the Group’s strategic segment selection and related initiatives. Across the product lines, Fieldbuses and Switches grew by more than 25% and 3% respectively and Sensors performed almost in line with the previous year. Product lines supplying the renewable energy markets such as Controls and Inverters declined compared to previous year.

Fieldbuses growth was due to several initiatives and actions worldwide targeting both building automation (i.e. car park systems) and industrial automation markets (i.e. safety monitoring on conveyor belts). Soft starters achieved a remarkable performance (14% higher than previous year) thanks to developments in building automation markets, particularly in the heating, ventilation and air conditioning market, where products are specifically designed for heat pumps and chillers with scroll compressors. The demand for energy management products used in photovoltaic solar farms was negatively impacted by country-specific policies. Subsidies in key markets such as Germany and Italy were significantly reduced.

However, the Group’s performance in this market was supported by sales in conventional energy and in distribution and almost matched the previous year overall.

Outlook
The distressed financial situation of several European countries is a major challenge for the Group. Despite the divergence in growth rates between major industrialized countries on the one hand, and emerging markets on the other, balanced development remains a key objective.
Sustainable growth will be driven by developing new products and new niche markets, by strengthening R&D and product management, by streamlining the internal value chain and further expanding in rapidly growing markets. Following dedicated business development initiatives in Taiwan, the next focus in Asia will be India. In countries where a direct sales presence is not planned or economical, the preferred coverage option will be through resident engineers working with improved distributor partnerships. In Brazil, by contrast, the Group is planning to set up a direct presence in order to improve penetration and boost market growth in South America.

In summary, Carlo Gavazzi has taken significant measures to continue to further strengthen both its product portfolio and its global distribution network. However, given the unpredictable development of most economies worldwide, a reliable forecast for 2012/13 is not foreseeable at this time.

The complete Annual Report 2011/12 of the Carlo Gavazzi Group will be available by July 5, 2012, on: http://www.carlogavazzi.com/en/investors/annual-report.html

Consolidated key figures (CHF million)

Income statement2011/122010/11%
Bookings 139.6 185.6 -24.8
Operating revenue 142.8 181.9 -21.5
EBITDA 24.6 35.7 -31.1
EBIT 21.2 31.8 -33.3
EBIT margin 14.8% 17.5%  
Net income 16.8 22.7 -26.0
Cash flow 20.1 26.6 -24.4
Balance sheet (as at 31 March)20122011 
Net working capital 30.9 29.8 +3.7
Shareholders' equity 96.3 104.1 -7.5
Total assets 132.2 155.1 -14.8
Equity as % of assets 72.9% 67.1%  

 

March 20, 2012

Invitation to State’s reception by the President of the Republic of Italy Giorgio Napolitano

On the occasion of the visit of the President of Malta to Italy on March 20th, Valeria Gavazzi, Chairman of the Carlo Gavazzi Group, attended the State’s dinner, invited by Giorgio Napolitano, President of the Italian Republic, in honor of George Abela, President of the Republic of Malta.