For the full year 2014, consolidated sales decreased by CHF 54 million to CHF 1.3 billion. Sales in the second half of 2014 reached CHF 740 million compared with CHF 560 million in the first six months of the year, and to CHF 791 million in the second semester 2013. The consolidated net profit will be higher than announced on December 3, 2014.
The Group lowers its turnover guidance for the year 2015 from CHF 1.25 to CHF 1.33 billion to a new range of CHF 1.15 to CHF 1.23 billion due to the decision of the Swiss National Bank to discontinue the minimum exchange rate of CHF 1.20 per Euro and taking into consideration the current exchange rate of CHF 1.05 per Euro. Net profit 2015 should be higher than CHF 15 million. This new guidance does not yet include the effects of measures which are currently evaluated, and which shall limit the negative impact of the new currency situation on the Group results.
Sales
Consolidated sales for full-year 2014 amounted to CHF 1.3 billion, a decrease of CHF 54 million or -4.0% compared to 2013.
The following changes lie behind the sales evolution:
* Exchange rate impact due to conversion for consolidation only. |
Sales in the second half of 2014 reached CHF 740 million compared with CHF 560 million in the first six months of the year and to CHF 791 million in the second semester 2013.
Sales of Sheet-fed products remained stable compared to the previous year at CHF 639 million. Demand for products for the corrugated packaging industry was strong and compensated for weaker demand behind products for the folding carton industry. Sales of Web-fed products decreased by 15.8% and achieved CHF 283 million for the year 2014. The reduction is mainly due to lower demand for special machines and complex lines. Sales of Services and spare parts remained stable compared to the previous year at CHF 377 million.
The geographical distribution shows a 2% improvement in sales in Europe. A significant improvement in countries such as Poland, Spain and Italy was partly eroded by lower sales in countries such as Russia, Romania as well as Germany and the UK. Sales in the Americas reduced by 3.3% compared to the excellent year 2013. Turnover in the US increased but other countries - in particular Mexico and Brazil - recorded lower sales than in 2013. Sales in Asia remained significantly below the previous year. This was mainly due to important one-time sales recorded in 2013 in Indonesia and a general slow down in China.
Outlook 2015
Due to good bookings in the last months of 2014, the Group started 2015 with a slightly higher backlog of orders than the year before. The positive investment mood of our customers continued into January of this year. The Group therefore anticipates a good utilization of production capacities for at least the first half of the year.
A significant negative impact came from the decision of the Swiss National Bank to discontinue the minimum exchange rate of CHF 1.20 per Euro. Based on the assumptions of an unchanged number of machines, spare parts and services sold to our customers, but taking into consideration the current exchange rates of CHF 1.05 per Euro and CHF 0.92 per US-Dollar, the Group has lowered its turnover guidance for the year 2015 from CHF 1.25 to CHF 1.33 billion to a new range of CHF 1.15 to CHF 1.23 billion.
The backlog available at the beginning of the year 2015 was hedged at rates close to our budget 2015 rates.
Based on the above assumptions the Group expects its net profit 2015 to be higher than CHF 15 million. This new guidance does not yet include the effects of measures which are currently being evaluated, and which shall limit the negative impact of the new currency situation on the Group results.
Further details and updates will be given with our results announcement on March 17, 2015.
