Media

Press information 2015

November 26, 2015

Carlo Gavazzi Group records stable first half – strong currency movements affect P&L



  • Operating revenue stable in local currency, decrease in Swiss Francs to CHF 64.7 million (2014/15: CHF 70.5 million, -8.2%)
  • EBIT stable at CHF 6.3 million – EBIT margin increases to 9.8% (2014/15: 9.0%)
  • Net income decreases CHF 1.1 million to CHF 3.8 million due to currency influences
  • Solid equity ratio of 70.5%


Steinhausen, November 26, 2015 – During the first half of the 2015/16 financial year, the overall business performance of Carlo Gavazzi was solid. However, both the appreciation of the Swiss Franc and the strengthening of the Euro against the US Dollar had a significant impact on revenues and net income, when comparing the period of March to September 2015 with the same period in 2014. 

The Group’s operating revenue in local currency was equal to that of the same period of the previous year, whereas revenue in Swiss Francs decreased by 8.2% to CHF 64.7 million (first half of 2014/15: CHF 70.5 million). Sales in Europe and North America increased but were weaker in Asia-Pacific. Orders were down 7.8% to CHF 65.1 million (CHF 70.6 million), however, in local currency they increased by 0.2%. The book-to-bill ratio was slightly above one.

While gross profit decreased by CHF 2.9 million to CHF 35.7 million (CHF 38.6 million) the gross margin increased to 55.2%, compared to 54.7% in the previous year. Operating expenses decreased to CHF 29.3 million (CHF 32.3 million) but were flat in local currency. This resulted in operating profit (EBIT) of CHF 6.3 million, the same as in the previous year. EBIT margin improved significantly 9.8%, compared to 9.0% in the first half of 2014/15.

Group net income amounted to CHF 3.8 million (-22.4%) against CHF 4.9 million in the previous year. The key reason for this decrease was an exchange difference of CHF 1.2 million, mainly due to the strengthening of the Euro against the US Dollar, resulting in an exchange loss of CHF 0.8 million, compared to an exchange gain of CHF 0.4 million in the previous year.

At September 30, 2015, shareholder‘s equity stood at CHF 86.3 million, giving an equity ratio of 70.5%.

Sales growth in Europa and North America – decrease in China

On the back of stronger sales in Italy, Germany and the UK, Europe recorded an increase in sales compared to the previous year of 0.8% Sales in Asia-Pacific decreased by 12.6%, mainly due to the economic situation in China and sluggish project-based business within the whole area. Sales in North America were up by 2.2% on the previous year, mainly due to effective sales programs implemented in the USA.

Double digit increase in Energy and Plastic markets

Sales in priority markets were 4.6% above the same period of last year. Among the selected priority markets, Energy and Plastic grew respectively by 19.6% and 16.1% versus the previous year.

Sensors sales, almost in line with the previous year, were impacted by a slowdown mainly within the European market, linked to the agriculture industry being affected negatively by the political situation in Russia and Ukraine.

Controls product sales were 2.5% below the same period of last year mainly due to a 6.2% decrease in monitoring relays linked to lower demand by selected customers in the USA and Asia. This decrease was offset partially by a 7.8% solid growth in sales of the energy management range due to the continuous effort in business development and the evolution of new products for key applications such as energy monitoring data centers and telecommunications power stations.

Sales of Switches products grew by 5.5% compared to the previous year. In particular, solid state relays sales were 8.7% above the same period of last year, confirming them as a very good value proposition for both industrial and building automation, also due to the newly enlarged RG platform and further penetration of the RM range. Fieldbus decreased versus the previous year by 4.6% due to the globally-spread postponement of major building automation projects.

Outlook

The global economic situation still remains uncertain thereby affecting overall market conditions. Advanced economies are expected to recover but at slower growth rates particularly across Europe while growth perspectives appear to be weaker within emerging markets.

Considering this scenario, the Group’s efforts will be directed at continuing to improve the geographic coverage, deploying local marketing initiatives selectively and strengthening R&D. Carlo Gavazzi continues to aim at adding significant value to the Group through balanced growth across all markets.

Consolidated key fgures (CHF million)

Income statement1. HY 2015/161. HY 2014/15%
Bookings 65.1 70.6 -7.8
Operating revenue 64.7 70.5 -8.2
EBITDA 7.9 8.2 -3.7
EBIT 6.3 6.3 0.0
EBIT margin 9.8% 9.0%  -
Net income 3.8 4.9 -22.4
Cash flow 5.4 6.8 -20.6
Additions to fixed assets 1.2 2.0 -40.0
 
Balance sheet30.9.201531.3.2015 
Net working capital 31.1 29.3 +6.1
Net cash position 41.1 45.0 -8.7

Interim Report
The complete interim report can be downloaded here.


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

July 28, 2015

Carlo Gavazzi shareholders’ meeting – All agenda points approved

Steinhausen, July 28, 2015 – At today’s annual shareholders’ meeting of Carlo Gavazzi Holding AG the Directors Valeria Gavazzi, Federico Foglia, Stefano Premoli Trovati and Daniel Hirschi as representative of the holders of bearer shares were re-elected for another period of one year. As proposed by the Board, Valeria Gavazzi was confirmed as Chairman.

The shareholders also approved the distribution of an ordinary dividend of CHF 12.00 per bearer share and CHF 2.40 per registered share and the amendments of the Articles of Incorporation.

In addition, they approved the board compensation for the preceding term of office, the fixed compensation for the next business year for executive management and their variable compensation for the 2014/15 business year.

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

 

About Carlo Gavazzi:
Carlo Gavazzi is a publicly listed 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

July 2, 2015

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

Steinhausen, July 2, 2015 – Carlo Gavazzi Holding AG has issued its Annual Report 2014/15 as well as the invitation and the agenda for the Annual General Meeting 2015, to take place on July 28, 2015, 10:30 a.m., at the Parkhotel in Zug.

As for the key figures for the business year 2014/15, Carlo Gavazzi Holding AG refers to its media release of June 25, 2015.

The annual report 2014/15 is available at:
http://www.carlogavazzi.com/en/investors/annual-report.html

The invitation and agenda for the Annual General Meeting 2015 are available at:
http://www.carlogavazzi.com/en/investors/financial-calendar.html

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

 

June 25, 2015

Carlo Gavazzi increases cash flow and net income 2014/15


  • Operating revenue of CHF 137.2 million, up 1.9% in local currency
  • Cash flow reaches CHF 15.6 million (2013/14: CHF 14.5 million, up 7.6%)
  • Net income increases 9.8% to CHF 12.3 million (2013/14: CHF 11.2 million)
  • Equity ratio of 73.2% (previous year: 72.5%)
  • Dividend of CHF 12.00 per bearer share proposed to AGM

 

Steinhausen, June 25, 2015 – In 2014/15, Carlo Gavazzi recorded an increase in revenues of 1.9% and bookings of 0.9% in local currency in 2014/15, on the back of solid sales in key markets and the successful launch of new products.

The decision of the Swiss National Bank of January 15, 2015, to remove the EUR/CHF floor of 1.20 resulted in some declines in the Carlo Gavazzi Income Statement. Operating revenue in Swiss Francs decreased by 2.3% to CHF 137.2 million (CHF 140.5 million in 2013/14). The Group recorded bookings of CHF 136.6 million (CHF 141.3 million in 2013/14), resulting in a book-to-bill ratio of almost one.

Gross profit decreased by CHF 2.2 million to CHF 75.9 million, resulting in a gross margin of 55.3% (55.6% in 2013/14). Operating expenses decreased by CHF 0.7 million from CHF 61.9 million in the previous year to CHF 61.2 million. This resulted in operating profit (EBIT) of CHF 14.8 million, compared to CHF 15.7 million (-5.7%) in the previous year.

Group net income reached CHF 12.3 million (+9.8%) against CHF 11.2 million in the previous year mainly because of an exchange gain of CHF 1.0 million due to the weakening of the Euro against the US Dollar.

At March 31, 2015, shareholders’ equity stood at CHF 88.5 million, giving an equity ratio of 73.2% with a net cash position of CHF 45.0 million. Having assessed the results, the Board of Directors will propose to the Annual Shareholders’ Meeting that the Company pays a dividend of CHF 12.00 per bearer share and CHF 2.40 per registered share for the reporting period, corresponding to a pay-out ratio of 69.5%.

Growing sales in Europe
Sales developed at different rates in the automation market across the three geographical regions. Thanks to a slight recovery in overall market conditions, the result in Europe was 1.9% above the previous year in local currency.

Sales in Asia-Pacific were stable in local currency compared to the previous year thanks to solid business developments with distributors and OEMs. In North America, sales were slightly down compared to the previous year even though sales and marketing activities were strengthened towards distributors and dedicated initiatives were taken in the industrial and building automation markets.

The geographical distribution of revenue remained stable, with sales outside Europe reaching 32.0%, with North America and Asia-Pacific accounting for 17.7% and 14.3%, respectively.

Strong demand for controls
Controls, the Group’s largest product line, increased sales by 6.5% above the previous year. In particular, Energy management products grew by more than 8% driven by the continuous development in energy monitoring in photovoltaic applications and also thanks to the EM270 series featured for energy monitoring in data centers.

The sensors product line performed almost in line with the previous year, with a positive contribution from photoelectric sensors which increased by more than 6% versus the previous year. On the other hand, growth rates of capacitive and inductive sensors in agriculture machinery slowed down somewhat.

The switches product line grew by more than 2% versus last year, driven by the solid-state relays RG platform development across all markets and by the development of RSGD and RSBS soft starters for compressors and high power applications particularly in North America.

Sales of our products in priority markets performed in line with the overall sales development. The acquisition of new customers had a positive effect in particular on the Food & Beverage market, which grew by 11% versus last year.

Introduction of new sensors and energy management products
Introducing new and enhanced products is a key element in the business development towards new and existing markets and geographies. The evolution of the new PD30 photo sensors platform in stainless steel will further increase penetration in the Food & Beverage market. The launch of a new generation of the energy meter EM100-300 series will boost the development in energy measurement. The enlargement of the solid-state relays range with the RGC1 series for power control will address key applications for Plastic, Packaging and HVAC whereas the enlargement of the soft starter range with the new RSGD series will address high power applications. The new generation of Dupline will allow for convergence of Dupline for industrial applications into the new Dupline platform, therefore addressing both new and existing customers.

Outlook
Overall, both the global economy and the relevant markets are expected to grow unevenly across the major geographical regions. Advanced economies are expected to perform better than emerging and developing countries while European machinery manufacturers should benefit from the positive EUR/USD outlook. Carlo Gavazzi will continue to focus on geographical coverage by improving the effectiveness of the direct sales organization and by further developing the network of distributors and agents.

As the Company consolidates in Swiss francs, the decision of the Swiss National Bank on January 15, 2015, to remove the EUR/CHF floor will have an impact on the Income Statement in the coming year. However, as Carlo Gavazzi does not have any research or production facilities in Switzerland, the majority of revenues and expenses arise outside. Nonetheless, the effect on this year’s figures was only for two and a half months, while the 2015/16 result will be impacted during the whole year.

Acknowledgements
The Group marks the very sad passing last October of its Honorary Chairman, Giovanni Bertola, a dear colleague and friend who was highly committed to his tasks and made very valuable contributions to the success of Carlo Gavazzi. He will be missed by the entire organization.

The complete Annual Report 2014/15 of the Carlo Gavazzi Group will be available by July 3, 2015, on: http://www.carlogavazzi.com/en/investors/annual-report.html

Consolidated key figures (CHF million)

Income statement2014/152013/14%
Bookings 136.6 141.3
-3.3
Operating revenue 137.2 140.5 -2.3
EBITDA 18.1 19.0 -4.7
EBIT 14.8 15.7 -5.7
EBIT margin 10.8% 11.1%  
Net income 12.3 11.2 +9.8
Cash flow 15.6 14.5 +7.6
Balance sheet (as at 31 March)20152014 
Net working capital 29.3 32.4 -9.6
Shareholders' equity 88.5 93.2 -5.0
Total assets 120.8 128.6 -6.1
Equity as % of assets 73.2% 72.5%  

 

About Carlo Gavazzi:
Carlo Gavazzi is a publicly listed 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

 

 

 

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