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Press information 2016

November 24, 2016

Carlo Gavazzi posts operationally solid half year result and substantial extraordinary income



  • Operating revenue increase of 2.3% to CHF 66.2 million in the first half of 2016/17 (previous year: CHF 64.7 million)
  • Sales stable in Europe, ca. 3% up in North America and Asia-Pacific
  • Substantial EBIT growth from CHF 6.3 million to CHF 7.9 million (+25.4%), mainly driven by non-recurring exceptional proceeds and currency effects
  • Increasing investments in R&D and Marketing
  • Group net income up from CHF 3.8 million to CHF 6.3 million (+65.8%).
  • Increased equity ratio of 72.3% (previous year: 70.5%)


Steinhausen, November 24, 2016 – During the first half of the 2016/17 financial year, Carlo Gavazzi recorded an increase in revenue, gross profit, EBIT and net income, driven by operating improvements outside Europe, currency effects and non-recurring proceeds from an arbitration.

Operating revenue increased by 2.3% from CHF 64.7 million in the first half of the previous year to CHF 66.2 million (+0.7% in local currency). Sales grew 3.2% in Asia-Pacific, 2.9% in North America and were in line with the previous year in Europe. Orders were up 4.1% to CHF 67.8 million (CHF 65.1 million) while in local currency they increased by 2.5%. The book-to-bill ratio was 1.03.

Gross profit increased by CHF 0.5 million to CHF 36.2million (CHF 35.7 million) and the gross margin was 54.7%, compared to 55.2% in the previous year. Following a business review, Carlo Gavazzi decided to increase investments in R&D as well as in Marketing in America and Asia-Pacific. As a consequence, operating expenses increased from CHF 29.3 million to CHF 30.6 million (+ 2.5% in local currency).

Operating profit (EBIT) grew from CHF 6.3 million to CHF 7.9 million (+25.4%) and group net income from CHF 3.8 million to CHF 6.3 million (+65.8%). The key reasons for this increase were (i) the favourable outcome of an arbitration contributing non-operational, non-recurring exceptional net proceeds of CHF 2.3 million and (ii) a change in the exchange difference of CHF 0.9 million, mainly due to the strengthening of the US Dollar against the Euro, resulting in an exchange gain of CHF 0.1 million, compared to an exchange loss of CHF 0.8 million in the previous year.

At September 30, 2016, shareholder's equity amounted to CHF 88.8 million, giving an equity ratio of 72.3%.

Sales increase outside Europe

Sales in Europe reached the same level as in the previous year. While the southern European countries experienced some economic uncertainty, stronger sales were achieved in Germany and the Nordic countries.

Sales in Asia-Pacific increased by 3.2%, mainly due to strong developments in China and Malaysia in building automation projects, both in car park management and in energy efficiency.

Sales in North America were up by 2.9% compared to the previous year, confirming the effectiveness of ongoing marketing initiatives in the region.
The geographical share of revenue outside Europe expanded to 34.2%, with sales in North America and Asia-Pacific accounting for 19.8% and 14.4%, respectively.

HVAC with double-digit growth

Sales in priority markets increased 2.5% versus the same period of last year. Among the selected priority markets, Heating, Ventilation and Air Conditioning (HVAC) and Plastic grew respectively by 12.5% and 4.6% versus the previous year.

Sensors sales were 1.1% below the same period of last year mainly due to a 4.9% decrease in capacitive sensors linked to the agriculture industry still being affected by the political situation in Russia and Ukraine.

Controls product sales were down 1.7% mainly due to a 6.6% decrease in monitoring relays linked to lower demand. This decrease was offset partially by a stable growth in sales of the energy management range, in particular due to the effective market introduction of the new EM300 series with value added features including MID certification.

Sales of switches products grew by 7.2% compared to the previous year. Solid state relays sales increased 6.3%, thanks to the development of RG and RM platforms across both the building and industrial automation markets. Soft starter sales were 13.1% above the previous year mainly due to the further penetration of the RSBT range which fulfills the evolving requirements of OEMs in HVAC market.

Revenues of the fieldbus product line decreased by 6.4%. Lower demand in industrial automation was partially offset by solid development in building automation projects in Asia and Northern Europe.

Outlook

The global economic outlook remains uncertain thereby affecting overall market conditions. Nonetheless, Carlo Gavazzi sees interesting growth opportunities in major markets, particularly outside Europe.

Consolidated key figures (CHF million)

Income statement1. HY 2016/171. HY 2015/16%
Bookings 67.8 65.1 +4.1
Operating revenue 66.2 64.7 +2.3
EBITDA 9.6 7.9 +21.5
EBIT 7.9 6.3 +25.4
Net income 6.3 3.8 +65.8
Cash flow 8.0 5.4 +48.1
Additions to fixed assets 1.0 1.2 -16.7
 
Balance sheet30.9.201631.3.2016 
Net working capital 32.0 29.9 +7.0
Net cash position 42.3 46.5 -9.0

Interim Report
The complete interim report can be downloaded from http://www.carlogavazzi.com/en/investors/interim-report.html

 

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

September 9, 2016

Carlo Gavazzi announces favorable outcome of arbitration

Steinhausen, September 9, 2016 – Carlo Gavazzi Holding AG announces today the favourable final outcome of an arbitration. An appeal by the respondent was rejected by the Swiss Federal Tribunal in Lausanne (see further details in Carlo Gavazzi’s Annual Report 2015/16, page 70, note 24).

The amount from the proceeding has meanwhile been received and will be accounted for in Carlo Gavazzi’s interim report for the half year ending on September 30, 2016, as a non-operational, non-recurring exceptional income. While the proceeding is not material for Carlo Gavazzi’s operations, the Company expects for the first six months a one-time effect on net income of more than 50% vs. the same period last year.

The interim report 2016/17 will be published on November 24, 2016.

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

July 26, 2016

Carlo Gavazzi shareholders’ meeting – All agenda points approved

Steinhausen, July 26, 2016 – 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.

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 2015/16 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

June 30, 2016

Carlo Gavazzi issues Invitation to the Annual General Meeting

Steinhausen, June 30, 2016 – The electronic group Carlo Gavazzi Holding AG from Zug has issued the invitation and the agenda for the Annual General Meeting 2016, to take place on Tuesday, July 26, 2016, 10:30 a.m., at the Parkhotel in Zug.

The invitation and agenda are available at:
http://www.carlogavazzi.com/en/investors/financial-calendar.html

The annual report 2015/16 has already been published on the occasion of the full year results communication on June 23, 2016. It is available at:
http://www.carlogavazzi.com/en/investors/annual-report.html

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

 

June 23, 2016

Carlo Gavazzi achieves stable operating result in 2015/16 – major currency exchange effects

 

  • Operating revenue reaches CHF 130.2 million (previous year: CHF 137.2 million) – up 0.5% in local currency
  • Gross profit of CHF 72.2 million (previous year: CHF 75.9 million) – gross margin increased by 0.2 points to 55.5%
  • Operating expenses decreased by CHF 3.1 million to CHF 58.1 million (previous year: CHF 61.2 million). EBIT margin increases 0.2 ppts to 11.0%
  • Net income of CHF 9.6 million, impacted by exchange losses
  • Consistently high equity ratio of 72.9% (previous year: 73.2%)
  • Dividend of CHF 12.00 per bearer share proposed to AGM

 

Steinhausen, June 23, 2016 – Carlo Gavazzi achieved a stable operational result in the 2015/16 business year. However, the decision of the Swiss National Bank of January 15, 2015, to remove the EUR/CHF floor of 1.20 had a marked negative impact on this year’s figures.

On the back of solid sales in key markets and the ongoing launch of new products, the revenues of the Group increased in local currency by 0.5% whereas bookings grew by 0.2%. The Group continued to implement its strategy of investing in its product portfolio and in the expansion of the sales network in markets outside Europe. Operating revenue in Swiss Francs decreased by 5.1% to CHF 130.2 million (CHF 137.2 million in 2014/15). Bookings decreased by 5.3% to CHF 129.3 million (CHF 136.3 million in 2014/15), resulting in a book-to-bill ratio of almost one. Gross profit decreased by CHF 3.8 million to CHF 72.2 million. Nonetheless, the gross margin increased by 0.2 points to 55.5%. Operating expenses decreased by CHF 3.1 million from CHF 61.2 million in the previous year to CHF 58.1 million. This resulted in operating profit (EBIT) of CHF 14.4 million, compared to CHF 14.8 million (-2.7%) in the previous year. The EBIT margin increased to 11.0% (previous year: 10.8%).

Group net income amounted to CHF 9.6 million (-22.0%) against CHF 12.3 million in the previous year, mainly due to an exchange loss of CHF 0.7 million due to the uneven movement of the Euro against the US Dollar compared to an exchange gain of CHF 1.0 million last year. At March 31, 2016, shareholders’ equity stood at CHF 91.4 million (CHF 88.5 million in 2014/15), giving an equity ratio of 72.9% (2015: 73.2%) with a net cash position of CHF 46.5 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 88.4%.

Solid growth in the US – declining sales in China
Sales developed at different rates in the automation market across the three geographical regions. In Europe, sales were slightly above the previous year (+0.8%) despite divergent market developments across the whole area. Sales in Asia-Pacific were down 9.1% compared to the previous year mainly due to an overall weakness in economic and business conditions, particularly with OEMs in China.

In North America, sales increased by 2.7% compared to the previous year thanks to the dedicated programs deployed with distributors in both the industrial and building automation markets. The geographical distribution of revenue continues to broaden, with sales outside Europe expanding to 33.4%, with North America and Asia-Pacific accounting for 19.3% and 14.1%, respectively.

Energy management products driving sales
The Group continued to implement its strategy of investing to enhance and improve its product portfolio. The controls product line performed slightly below the previous year, however, there was a very positive contribution from energy management products, which grew by more than 9% versus the previous year. This positive momentum is mainly due to the continuous increase in demand for energy monitoring products such as the EM200 series for building automation, particularly data centers.

Sensor products performed almost in line with the previous year. A positive contribution came from inductive sensors, which increased by 7% versus the previous year, mainly due to the ICB/ICS platform used in packaging and material handling applications as well as in food & beverage.

The switches product line grew by more than 6% versus last year, driven by the solid-state relays RG platform development across all markets in industrial automation, particularly in plastics and food & beverage applications. The fieldbus product line suffered versus the previous year in Europe due to postponement or cancellation of projects in infrastructure and slow deployment of new business development programs in building automation. Sales of our products in priority markets were above the previous year and performed better than overall sales growth, with an increase of more than 23% and 14%, respectively, in the energy and plastics markets.

New products
Introduction of new and enhanced products is a key element in the business development towards new and existing markets and geographies. The deployment of IO link features across core sensor families will address the key requirements arising from Industry 4.0 trends and technologies that are going to reshape manufacturing profoundly in the future.

The development of the new WM50 power analyzer will drive further the evolution of our product portfolio, targeting energy efficiency applications, both multi-channel and multi-site. The monitoring relays product range is being renewed by introducing new functions and technologies, which will further enhance penetration across all markets.

The introduction of the new RMS3 platform will enlarge the offering by providing motor controllers with embedded functional safety features, in compliance with the requirement to raise standards for the machine safety market. The further evolution of the car park product offering will allow for integration of parking guidance and smart building in one system, resulting in achieving energy savings through both demand-based control of lighting and ventilation and the intelligent use of occupancy values in car parks.

Outlook
Overall, both the global economy and the relevant markets are expected to continue to grow unevenly at a somewhat slower pace. Expectations are for increased growth in the developing countries and a modest improvement in the major economies. 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.

The complete Annual Report 2015/16 of the Carlo Gavazzi Group is available on: http://www.carlogavazzi.com/en/investors/annual-report.html

Income statement2015/162014/15%
Bookings 129.3 136.6
-5.3
Operating revenue 130.2 137.2 -5.1
EBITDA 17.6 18.1 -2.8
EBIT 14.4 14.8 -2.7
EBIT margin 11.0% 10.8%  
Net income 9.6 12.3 -22.0
Cash flow 12.9 15.6 -17.3
Balance sheet (as at 31 March)20162015 
Net working capital 29.9 29.3 +2.0
Shareholders' equity 91.4 88.5 +3.2
Total assets 125.4 120.8 +3.8
Equity as % of assets 72.9% 73.2%  

 

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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