Business in
2009
Orell Füssli reported lower sales and profits in the year under review. This was mainly attributable to the difficult market conditions in the industrial business and postponements of production in security printing. Despite rigorously implemented cost-cutting action, Orell Füssli reported net profits well below expectations. The company expects the trend of business in all divisions to improve in 2010.
Orell Füssli reported sales of CHF 306 million in the 2009 financial year. This corresponds to a decline of 17% compared to the previous year. After adjustment for exchange rate movements, sales by the ongoing businesses were 13% lower. Operating earnings of the Orell Füssli Group declined to CHF 23.1 million (CHF 59.8 million in 2008). Net income amounted to CHF 14.7 million.
Sales and earnings of all business units in the Orell Füssli portfolio were lower than in the previous year. Orell Füssli also had to reduce its workforce in order to adjust its structures and cost base to the lower volumes of business. At the end of 2009 the number of personnel employed was 7% lower than a year earlier. Orell Füssli also reduced the size of the Executive Board and delegated responsibility for IT and HR management to the divisions. This simplifies Orell Füssli’s management structure and increases the autonomy of the divisions.
Despite the difficult and turbulent year experienced in 2009, Orell Füssli’s balance sheet is still in robust shape. Free cash flow amounts to CHF 3.7 million. The net cash position declined from CHF 26.4 million in the previous year to CHF 13.0 million. The equity ratio increased from 59.3% to 61.6% (including minority interests), which is a very healthy figure.
segmental results
CHF '000 | 2009 | 2008 | 2007 | 2006 | |||||
Division Atlantic Zeiser | |||||||||
Sales | 72,536 | 104,984 | 111,507 | 112,334 | |||||
Earnings before interest and taxes (EBIT) | –4,427 | 7,275 | 13,568 | 16,476 | |||||
Division Security Printing | |||||||||
Sales | 85,323 | 102,980 | 97,503 | 81,580 | |||||
Earnings before interest and taxes (EBIT) | 16,704 | 23,983 | 18,206 | 13,652 | |||||
Division Book Retailing | |||||||||
Sales | 123,629 | 122,747 | 121,509 | 115,715 | |||||
Earnings before interest and taxes (EBIT) | 6,308 | 3,423 | 4,779 | 3,689 | |||||
