Semesterergebnis 1/2007 - Positive Umsatz- und Gewinnentwicklung bei Orell Füssli
Half year results clearly above previous year – restrained industrial business – remarkable growth in book retailing and publishing – good year end results expected
In the first half year 2007 the Orell Füssli group has increased the turnover by 7.5% up to CHF 166.1 millions. EBIT was up by 6.7% to CHF 11.6 millions and net income before minority interests was up even by 38.1% to CHF 9.8 millions. The appealing business development was carried by the favorable economy on the one side and by the implemented measures to constantly increase the margins on the other side. The performance of the individual divisions however showed varied results what is anticipated to remain for the near future. Overall a good year end result is expected.
The industry segment showed a restrained performance in the first half year 2007 with diverse developments:
The machine engineering business of Atlantic Zeiser underachieved due to a delayed market entry program for a new product line. However recent market successes in the USA and on international trade shows indicate that a significant part of the back log can be made up within 2007.
The Orell Füssli security printing division however reported a significant increase in sales and profit and a record high order intake for the first half year 2007 which allows constant capacity utilization until the end of 2008. Investments of about CHF 40 millions to modernize and to expand the current printing production facilities in Zurich Wiedikon are made that require considerable structural alteration works while running three shift operations until the end of 2008. As a result temporarily planned reductions of production capacities by around 15% will slightly impair the turnover development until then.
The book retailing business stated a pleasant upswing. Carried by a strong economy the growth was further stimulated by marketing measures that were implemented right after the Swiss book price fixing fell in May 2007. End of June 2007 sales were up by 6.7%. Due to the generally stronger second semester and to the resolved problems with the new ERP system the year end result can be expected to be clearly above previous year.
The publishing business could improve as well: sales were up by 15.0%, EBIT was up by 6.6% above previous year. The division business information reported rather flat but stable sales and profit figures. As of January 2007 the acquired Globi Verlag was integrated into the Orell Füssli group.
As of August 1, 2007 Mr. Alex Aepli, an acknowledged publishing expert, has started as head of Orell Füssli publishing division and member of the group management team.
Outlook
Without any market brake downs a solid year end result with sales clearly and profits slightly above last years record figures can be expect for the Orell Füssli group. The industrial segment is assumed to further lag slightly behind the growth trend of the book business. Therefore the overall EBIT margin might tend to slightly soften. The Board of Directors and the group management assume that Orell Füssli medium term will continue to grow profitably.
Orell Füssli key figures
CHFm | 2006 | S1 2006 | S1 2007 | D% |
Turnover | 352.6 | 154.5 | 166.1 | +7.5% |
EBITDA in % turnover | 53.6 15.2% | 17.4 11.3% | 18.5 11.1% | +6.3% |
EBIT in % turnover | 39.2 11.1% | 10.8 7.0% | 11.6 7.0% | +6.7% |
Net profit in % turnover | 27.4 7.8% | 7.3 4.7% | 9.2 5.5% | +8.0% |
Total assets | 254.5 | 271.6 | 247.0 | -9.1% |
Equity in % total assets | 130.0 51.1% | 109.0 40.1% | 132.0 53.5% | +21.1% |
Employees | 1’049 | 1’030 | 1’054 | +2.3% |
Orell Füssli Group
The renowned company Orell Füssli, based in Zurich, Switzerland – since 1519 – combines the three independent business segments security printing and industrial systems, book retailing and publishing.
Both in terms of technology and quality, the segment security printing and industrial systems is a leader in the banknote and security printing sector as well as in the engineering and manufacturing of technology systems for the individualization of security documents and industrial products. Orell Füssli holds a leading position in Switzerland in the book retailing sector with wholesale and specialist bookstores and with online bookshops. The publishing segment includes the Orell Füssli book publishing group as well as extensive online databases containing company and personal business information.
Orell Füssli generates a turnover of CHF 350 million with 1’050 employees based in 10 countries and is listed at the Swiss stock exchange (www.orellfuessli.ch).
Information:
Sönke Bandixen, CEO Orell Füssli
Tel +41 44 466 7267, ceo[at]ofh.ch
Attachment:
Orell Füssli financial report 1st semester 2007
