Orell Füssli reports solid annual figures and high profits
Balanced portfolio with strong banknote business – sales revenues affected by currency translation – net profit 60% higher following sale of division – significant dividend increase proposed
Zurich, April 7, 2009. In the 2008 financial year the Orell Füssli Group generated sales of CHF 367.2 million (3.0% lower than in 2007) with its diversified portfolio of businesses in security technology, security printing and book retailing, and reported profits of CHF 48.0 million (60.5% higher than in 2007) following the sale of the Orell Füssli Business Information Division. The decline in sales revenues was due primarily to the sale of the division and to currency translation effects. Sales by ongoing businesses were 1.5% higher after adjustment for exchange rate movements. Operating earnings before the sale of subsidiaries amounted to CHF 38.6 million. The divisions made varying contributions to consolidated results.
The Atlantic Zeiser Division, which operates in the field of security technology, focusing on international machinery manufacturing and the systems business, suffered substantial reductions in orders received in the fourth quarter of 2008. Sales of CHF 105.0 million were 5.8% lower than in the previous year. Sales revenues in local currencies were 2.6% lower. Operating earnings declined to CHF 7.3 million, and the EBIT margin to 6.9%. Atlantic Zeiser is responding to the difficult market environment by stepping up launches of product innovations. Margins are being protected by short-time working at the Emmingen plant in Germany and systematic cost management. Atlantic Zeiser expects a further decline in sales and profit trends in 2009 due to continued caution with regard to investment decisions.
The Orell Füssli Security Printing Division posted a 5.6% increase in sales to CHF 103.0 million. Operating earnings increased sharply by 31.7% to CHF 24.0 million, and the EBIT margin was 23.2%. Following the completion of the extensive structural alterations in Zurich, Orell Füssli has one of the world’s most modern banknote production facilities and is thus prepared for the manufacture of the new series of Swiss banknotes. A fairly good business result is expected in the 2009 financial year on the basis of a good level of orders in hand for other countries’ banknotes and against the backdrop of the forthcoming production start-up for the new series of Swiss banknotes.
The Orell Füssli Book Retailing Division posted a 1.0% increase in sales to CHF 122.7 million, but failed to achieve the growth it had aimed for. After a good start to the year, the economic slowdown which commenced in mid-year and flat Christmas sales left their mark. In the final quarter of 2008 Orell Füssli opened four new branches, two in Berne and one each in Uster and Wil (Canton St. Gall), and thus established a basis for further growth. The start-up costs for the new branches affected operating earnings, which were 28.4% lower than a year earlier at CHF 3.4 million. A trend of business similar to that of the previous year is expected for 2009.
Orell Füssli Publishing, which combines all the publishing activities with the exception of business information, which has been disposed of, recorded a 9.4% increase in sales to CHF 22.7 million in 2008. After adjustment for currency movements and acquisitions, growth amounted to 3.4%. Book Publishing completed the integration of the Huber publishing house, which was acquired at the beginning of the year, and reported increased sales. Photoglob’s picture postcard business recorded slightly lower sales. Operating earnings of CHF 0.8 million were 10.7% higher than in the previous year. The trend of business is expected to remain stable.
The Orell Füssli Business Information Division was sold to Axon Active AG in mid-2008. The results posted in the first half of 2008 and the realised book profit of CHF 21.2 million are included in the consolidated financial statements for 2008.
The consolidated balance sheet of Orell Füssli at December 31, 2008, shows a further increase in the equity ratio before minority interests to 54.3% of total assets. The net cash position increased to CHF 26.4 million despite high capital expenditure of CHF 50.2 million.
60% increase in dividend
The Board of Directors will propose to the Annual General Meeting on May 6, 2009, that approximately one-third of the net profit and thus a dividend of CHF 8.00 per registered share (an increase of 60%) should be disbursed. At a price of CHF 140.00 per registered share, this is equivalent to a dividend yield of 5.7%.
Klaus Oesch, Chairman of the Board of Orell Füssli, comments: “The Orell Füssli portfolio of diversified business units has also proved its worth in economically turbulent times and once again contributed to solid consolidated results and an attractive dividend.” Sönke Bandixen, Orell Füssli’s CEO, adds: “We are assuming that the business environment will remain recessionary and – especially in the capital goods industry – challenging in the 2009 financial year. We do not expect markets to make a rapid recovery, and we shall keep a firm grip on costs and base our planning on various scenarios. Overall, we expect to maintain sales levels in 2009 and in view of the general economic development to generate rather decreased profits.”
Key figures for Orell Füssli
CHF m | 2007 | 20081 | Δ% |
Sales | 378.4 | 367.2 | -3.0% |
Operating earnings before sale of subsidiaries in % of sales | 42.2 11.2% | 38.6 10.5% | -8.5% |
Proceeds from sale of subsidiaries |
| 21.2 |
|
Operating earnings (EBIT) | 59.8 | +41.7% | |
Profit after minority interests | 29.9 | 48.0 | +60.5% |
Number of employees | 1 118 | 1 104 | -1.3% |
Dividend | 5.00 | 8.002 | +60.0% |
1) The revised figures differ only marginally from the provisional figures published on January 30, 2009.
2) Proposal by the Board of Directors to the Annual General Meeting on May 6, 2009.
Orell Füssli is an international industrial and commercial group focusing on the core businesses of banknote & security printing, industrial systems used in the individualisation of security documents and branded products, and book retailing. The book publishing business has formed the traditional basis for the Zurich-based company since 1519. Orell Füssli generates sales of some CHF 370 million with 1 100 employees at locations in 10 countries and is listed on the Swiss Stock Exchange.
In brief
Orell Füssli reports solid annual figures Zurich, April 7, 2009. International industrial and commercial group Orell Füssli posted solid results for the 2008 financial year with sales of some CHF 367 million and profits some 60% higher at CHF 48 million following the sale of a division. The payment of a significantly higher dividend of CHF 8.-- per registered share will be proposed to the Annual General Meeting on May 6, 2009. Orell Füssli expects to maintain sales and report lower profits for 2009 in a market environment which continues to be challenging. |
Key figures for Orell Füssli
CHF m | 2007 | 2008 | Δ% |
Sales | 378.4 | 367.2 | - 3.0% |
Book profit from sale of subsidiaries | 21.2 | ||
EBIT | 42.2 | 59.8 | +41.7% |
Net profit | 29.9 | 48.0 | +60.5% |
Annual Report
The Annual Report for 2008 will be published with today’s date and can be obtained from The Secretary to the Executive Board (Hanna Saladin, Phone +41 44 466 7273, hanna.saladin[at]ofh.ch) and accessed on the Internet at http://www.orellfuessli.com/en/investors/annual-reports/.
Agenda
Results press conference, Zurich
April 7, 2009, 9:00 a.m.
Presentation to financial analysts, Zurich
April 7, 2009, 10:30 a.m.
Annual General Meeting of Orell Füssli Holding Ltd, Zurich
May 6, 2009, 3:30 p.m.
Press release, half-year results 2009
August 4, 2009
Investors’ Day – Orell Füssli Insight, Zurich
October 7, 2009
Information
Sönke Bandixen, CEO Orell Füssli
Phone +41 44 466 7273
investor-relations[at]orellfuessli.com
