DGAP-News: Report on Schaffner Holding AG by Research Dynamics: Company Update (News mit Zusatzmaterial)

Report on Schaffner Holding AG by Research Dynamics: Company Update (News mit Zusatzmaterial)

DGAP-News: Research Dynamics / Schlagwort(e): Research Update

Report on Schaffner Holding AG by Research Dynamics: Company Update

(News mit Zusatzmaterial)

16.10.2015 / 17:31

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Weaker sales and EBIT margin

Weaker sales due to market conditions

Schaffner today reported a few key figures for its fiscal year 2014/15

which ended 30 September 2015. Net sales amounted to CHF202mn, a decrease

of 5.9% compared to the CHF214.6mn reported a year ago. Sales came in below

the company's guidance from last March, where management expected sales to

remain at last year's level, due to as the company stated "market

conditions". Schaffner's largest division - EMC - has been facing headwinds

in the renewable energy sector in the first half-year as orders for its

high-quality solutions from the Chinese solar inverter industry fell

significantly.

Strategy review costs weigh on EBIT margin

The company announced a preliminary EBIT margin for fiscal 2014/15 of 4.4%

and a preliminary EBITA margin (EBIT before acquisitions-related

amortization) of 5.3%. This is somewhat below management's 5% EBIT margin

guidance from last March. Main reasons given for the lower margin were

extraordinary costs associated with the analysis of various strategic

options for the Automotive division and initial measures to implement the

new Strategy 2020. All together, these depressed EBIT by CHF2mn. Adding

back these one-off costs to the preliminary EBIT of around CHF8.8mn, we

calculate an adjusted EBIT margin of 5.3%, which would have been somewhat

above the FY guidance.

Schaffner management presented the outcome of its recent strategic review

on occasion of its Investors' Day in September. The group intends to

accelerate growth with a goal to almost double its top-line to more than

CHF400mn by FY2020 through both organic growth and an increased

contribution from acquisitions. On the margin side, management is looking

to achieve an EBITA margin above 8% across the cycle.

Despite the recent negative market conditions, we believe Schaffner is well

placed to exploit the opportunities in its respective markets. Given

management's confidence and strive to accelerate the growth pace to almost

double revenues over the next five years, there is attractive potential

mid-term. The company will be reporting the full set of figures on 8

December 2015, which will give us more insight into the company and

corresponding divisions.

+++++

Zusatzmaterial zur Meldung:

Dokument: http://n.equitystory.com/c/fncls.ssp?u=UGXXBAYKRG

Dokumenttitel: Schaffner Company Update 16 Oct 2015

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16.10.2015 Veröffentlichung einer Corporate News/Finanznachricht,

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403343 16.10.2015