Swisslog continues on its growth path
Buchs/Aarau, 8 March 2007 – Swisslog achieved growth at all levels in the business year 2006. Net sales, order intake and order backlog increased significantly, while the operating result (EBITA) improved by over 40% to MCHF 31.1. For the current year Swisslog anticipates a further operating improvement and a positive net result.
Download Media and Analyst presentation
Download Financial Report
“The numbers show that we were able to successfully continue last year’s growth. They are also a sign that we are again fully recognized by the market as a leading provider of integrated logistics solutions,” CEO Remo Brunschwiler comments on the financial result for 2006. Net sales rose by 16.3% to MCHF 646.9 (2005: MCHF 556.4) and the operating result (EBITA) significantly improved by more than 40% to MCHF 31.1 (2005: MCHF 21.8). The continued growth is also reflected in an increase in both order intake (+7.7% to MCHF 677.3) and order backlog (+5.3% to MCHF 538.0). This will allow Swisslog to again achieve a net sales increase in 2007. Thanks to the capital increase successfully completed in May 2006, Swisslog also reports a significantly strengthened balance sheet with an equity ratio of 32.8%.
A negative influence on the net result were the two one-time effects accounted for in the first half year, which were the result of the goodwill impairment in the Consulting Services/Wassermann division (MCHF 10.1) and of the partial repurchase of the convertible bonds (MCHF 8.0). In spite of a profitable second half year, these effects led to a net loss of MCHF -3.5 (2005: MCHF +1.8).
Warehouse & Distribution Solutions
The Warehouse & Distribution Solutions division improved its operating result (EBITA) as compared to 2005 by 20.2% to MCHF 23.2 (MCHF 19.3). Net sales also significantly improved to MCHF 415.7 (+17.2%). In addition to orders from existing customers, such as Coca-Cola Amatil, major orders by new customers like Lindex, People’s Bank of China, Quinn Radiators and Target were booked in 2006. In total, order intake increased by 4.9% to MCHF 425.5 and order backlog by 3.0% to MCHF 369.7. “Based on our strengthened position in important markets we anticipate a sustained uptrend for Warehouse & Distribution Solutions,” Brunschwiler views the prospects for the current year.
While net sales increased by 15.1% to MCHF 220.0, the operating result (EBITA) improved by 11.1% to MCHF 19.0 (2005: MCHF 17.1). Order intake rose by 12.9% to MCHF 238.6 (2005: MCHF 211.4). The slightly reduced EBITA margin of 8.6% (2005: 8.9%) is the result of the higher ratio of larger orders, of additional costs in the execution of projects, as well as of legal costs in connection with a patent infringement claim. According to CEO Brunschwiler, “with its solutions in the hospital sector the division is very well positioned both in North America and in Europe.”
The only unsatisfactory performance came from Consulting Services/Wassermann, which reported an operating loss of MCHF -1.3 (2005: MCHF -2.0). The disappointing developments in terms of net sales and operating profit made it necessary to perform a goodwill impairment test, and led to the aforementioned impairment. However, the increase in both order intake (5.4%) and order backlog (57.1%) as well as the implemented cost cutting measures are expected to result in an increase in earning power for the current business year.
Positive outlook for 2007
Thanks to a solid order situation and a strengthened balance sheet, the foundation for continuous, profitable growth has been laid. For the business year 2007 Swisslog anticipates a net sales increase of 5% to 10%, a continued improvement of the operational result (EBITA), and a positive net result. In order to sustain this growth the headcount is expected to be increased by about 100 additional employees.
16 May 2007: Swisslog’s Annual General Meeting
29 May 2007: Investor's Day
21 August 2007: Half-year Report for 2007
Swisslog Management AG
Swisslog is a global provider of integrated logistics solutions for warehouses, distribution centres and hospitals. Its comprehensive services portfolio ranges from building complex warehouses and distribution centres to implementing Swisslog's own software. In addition Swisslog provides intra-company logistics solutions for hospitals as well as software and consulting services in the field of supply chain management
Swisslog's solutions optimize customers' production, logistics and distribution processes in order to increase flexibility, responsiveness and quality of service while minimizing logistics costs. With years of experience in the development and implementation of integrated logistics solutions, Swisslog provides the expertise that customers in more than 50 countries around the world rely on.
Headquartered in Buchs/Aarau, Switzerland, Swisslog currently employs around 1 850 staff in 20 countries worldwide. The group's parent company, Swisslog Holding AG, is listed on SWX Swiss Exchange (security number: 1232462, Telekurs: SLOG, Reuters: SLOG.S). For more information, visit www.swisslog.com.