Positive development at Orell Füssli. Results for the 2006 Financial Year, Proposals for the General Assembly
Increase of turnover of 5% - record figures for security printing and industrial systems – increase of income in publishing – hesitating demand at book retailing – higher dividends
The Orell Füssli Group with its five divisions increased the turnover by 5% compared to the previous year’s figure of CHF 353 million. The net income of CHF 27.4 million is significantly higher than the 2005 figure of CHF 14.9 million. The previous year was charged by special factors. However, the 2006 figures were also 14% higher than the good results of 2004.
The industry-oriented business of Atlantic Zeiser improved turnover and EBIT. As the special burdens that handicapped the 2005 accounts could be eliminated, net income 2006 was substantially better than the year before. Security printing was well charged with workload throughout 2006. Problems, which jeopardised the previous year’s results have been overcome. The high capacity utilization was mainly due to printing of banknotes for export. With book retailing demand was slow. Turnover was slightly higher than in 2005 but did not meet the expectations. This is partly due to the ongoing erosion of prices in book retailing. The operational profit was additionally influenced by problems due to the implementation of a new ERP system. The publishing activities improved the result significantly at slightly higher sales. Both business information and book publishing contributed to the profit improvement.
The final figures for 2006 are slightly different from the provisional figures published on February 6th, 2007. The most remarkable deviation concerns the net income because the actuarial profit due to IAS 19 had to be increased.
Consolidated figures 2006
CHF million | Provisional figures of 6th February 2007 | Final figures (see Annual Report) |
|
|
|
Turnover | 352.3 | 352.6 |
Operating result EBIT | 39.3 | 39.2 |
Annual profits | 26.8 | 27.4 |
Proposals for the General Assembly
The Board is proposing to the General Assembly on May 9th, 2007, to pay a dividend of CHF 4.50 per registered share, which corresponds to an increase of 50%. This corresponds to the dividend guidelines that roughly 1/3 of the profit will be paid to the shareholder. At a price per share of CHF 200 this dividend corresponds to a return of 2.25%.
Outlook
The Orell Füssli Group expects for 2007 sales and profits in the range of the previous year. Main focus will be the development of new products with industrial systems and the preparation for important investments in the security printing division.
Annual Report
The 2006 Annual Report will be published as of today’s date and may be obtained from the Management Secretary’s Office (Hanna Michel, Tel. +41 (0)44 466 72 73, Email Hanna.Michel@ofgb.ch). The Annual Report may also be viewed on the internet at www.orellfuessli.ch.
Changes in the Board of Directors
Peter Klauser will resign as Board Member of Orell Füssli at the General Assembly of Mai 9th, 2007. He had been a Member of the Board of Directors during 22 years, whereof 11 years as President. Under his presidency important organizational changes including the introduction of modern corporate governance took place as well as strategic acquisitions such as Teledata and Atlantic Zeiser. Hans Kuhn, Member of the Management and Head of Legal Service at Swiss National Bank will be proposed as Board Member. Given his re-election as Board Member, Klaus Oesch will become Chairman of the Board. He will resign as CEO and Sönke Bandixen will become Group CEO as of 1st July, 2007. Sönke Bandixen has a long record and experience as executive of industrial companies in Switzerland and abroad.
As a strategic and financial holding, the traditional company of Orell Füssli combines the three business segments of “security printing and industrial systems”, “book retailing” and “publishing”. The group has sales of CHF 350 million and employs around 1000 members of staff.
Both in terms of technology and quality, the Orell Füssli is a leader in the security printing sector, in the development and manufacturing of systems for security documents and for the individualisation of products and documents. Orell Füssli holds a leading position in German-speaking Switzerland in the Book retailing sector, with wholesale and specialist retail outlets and an Internet bookshop (www.books.ch). In Publishing Orell Füssli is not only a specialist book publisher but runs also extensive on-line databases containing company and personal information relating to the Swiss economy (www.teledata.ch, www.kompass.ch).
Information:
Klaus Oesch
CEO
Phone +41 (0)44 466 72 73
Email investor-relations[at]ofgb.ch
