Feintool increases sales in 2016 by 6% in local currency to $547.7 million

13 March 2017
Feintool has increased sales by 6% in 2016 compared to the previous year to CHF 552 million ($547.7 million), company said in a statement received by deMetallo. The operating result (EBIT) increased by more than 20% compared to the previous year, to more than CHF 41 m. The operating margin amounted to 7.5%.

Organic higher sales

The global automobile industry continued to grow in 2016. Feintool benefitted from this positive industry trend and grew – despite challenging demands – by outpacing the market in every relevant region. The Feintool Group generated sales of CHF 552.2 m in the 2016 financial year, which corresponds to an increase of 8.5%. Adjusted for currency effects, the company achieved a growth of 5.9%.

The System Parts segment, in which Feintool is globally present with the high-volume production of precise fineblanked and formed components, accounts for the largest share of sales. In the reporting year, the segment grew in local currency by 6.5% to CHF 479.3 m, thus generating 86.8% of the consolidated sales. This increase is primarily due to the increased global volume of new products in Europe in comparison to the previous year.
 
In the Fineblanking Technology segment, in which Feintool provides comprehensive technological solutions for fineblanking, sales totaled CHF 92.7 m. The 4.9% increase compared to the previous year in local currency is due to the pick up of press sales in Asia as well as increased internal orders.

Vastly improved operating profit

All segments and regions made a positive contribution to the operating profit this year as well. The Feintool Group generated an EBIT of CHF 41.3 m, which is a significant increase of 20.8% in local currency. The operating business achieved an EBIT margin of 7.5%. The System Parts segment achieved an EBIT of CHF 44.4 m and an EBIT margin of 9.3%. The sales growth due to the good automobile economy and new launches or ramp-ups of many products led once again to higher capacity utilization at most companies, which had a positive impact on margins overall. The programs for increasing efficiency at all locations and higher added value have supported this pleasing development.

In the Fineblanking Technology segment investment goods business, Feintool generated an operating profit of CHF 4.3 m. The margin fell to 4.7% compared to the previous year. The main reason for this development is the increased research expenses of CHF 5.6 m as an investment in the future as well as costs in the amount of CHF 1.2 m for the reorganization of the China business.

Numerous orders and expected releases

The expected releases from our customers in the high-volume parts business for the next six months total CHF 240.9 m. This value increased by 14.9% and is now at a record high at the end of the year. Accordingly, our customers expect a positive market environment in every region.

Orders received in the Fineblanking Technology segment fell by 8.8% to CHF 85.8 m, with CHF 28.6 m stemming from the System Parts segment, which was significantly more than in the previous year. Thus, third-party orders received fell to CHF 57.2 m. The orders backlog decreased by 18.8% to CHF 35.1 m, with CHF 16.0 m from intragroup orders. The order backlog is therefore about six months.

Expansion of market capacity

With the goal of opening up further market segments and expanding production capacities in the European fineblanking business, Feintool is building a new plant in Most (Czech Republic). Thus, the company is fulfilling the customer desire for global suppliers that can master both basic and complex applications and are also close to the customer. The System Parts segment will develop its market position for production of simpler and less complex fineblanked components and for assembly production while Fineblanking Technology will focus on the manufacture of simple and medium-complexity fineblanking tools and spare parts. Production is planned to start mid 2018.  

In addition, Feintool announced in February 2017 that it would acquire the Chinese forming plant founded in 2014 in Tianjin by the German Schuler Group. Existing orders are in the ramp-up phase; further investments and expansion are planned in the next two years. The acquisition allows Feintool to close the strategic loophole and now offer sophisticated forming applications in all important automotive markets, thus continuing to expand its market position.

Change in the Board of Directors

Dr. Kurt E. Stirnemann and Wolfgang Feil, who have been members of the Board of Directors for many years, will not stand for re-election at the General Meeting of April 25, 2017. As has already been announced, the election of Heinz Loosli, CEO of the Feintool Group between 2009 and 2016, as member will be proposed to the Board of Directors.

Positive outlook

Feintool is generally expecting to develop positively in 2017, albeit in market conditions that are shaped by political uncertainty. Without the influence of the latest acquisition of the Chinese forming plant, we expect turnover of around CHF 580 m and an EBIT margin of 7.5% - 8%. 

Tags: Feintool


Comments

To like this you need to register.
To do this, enter your name and email address.
Name:
Surname:
E-mail:
Sex:
If you are already registered
please enter your details here
To leave comments you need to register.
To do this, enter your name and email address.
Name:
Surname:
E-mail:
Sex:
If you are already registered
please enter your details here
We welcome comments that advance the story through relevant opinion and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of deMetallo. For more information on our comment policy, see: http://www.demetallo.com/legal/comment_policy/

Copyright © 2000-2017 United Information Systems, LLC. All rights reserved.

Republication of content is prohibited without the prior written consent of deMetallo.

Back to top