Schweiter Technologies AG performed well in 2011 despite several odds. Orders received amounted to CHF 857.7 million (2010: 960.9). Net revenues reached CHF 785.6 million (2010: 932.1). This represents a decrease of 16% (-6% after adjustment for currency effects).
SSM Textile Machinery suffered amid the downturn on the two core markets of China and India, but reported an impressive result overall. Ismeca Semiconductor was also impacted by a significant downturn in the semiconductor industry, but nonetheless achieved a positive result in the second half.
3A Composites posted good results in the architecture and display segments, while the result achieved in the core materials market was adversely affected in the second half of the year by the strong downturn in China’s wind power sector.
The Group’s consolidated EBITDA totalled CHF 88.4 million (2010: 100.3), corresponding to a return on sales of 11 per cent. Net income amounted to CHF 47.5 million (1H 2010: 49.6). At 3A Composites, substantial headcount adjustments, other operational improvements, early adoption of IAS 19 revised and the switch to a defined contributions scheme in connection with the change in pension fund reduced personnel costs as well as pension obligations and improved EBIT/EBITDA by around CHF 27 million and net income by CHF 22 million. Restructuring costs impacted the result by approximately CHF 5 million.
Rolf-D.Schoemezler will be stepping down from the Board of Directors on grounds of age upon expiry of the present term of office in May. He joined the Schweiter Group in 1987 as CEO of SSM Textile Machinery and has been a member of the Board of Directors since 1993. The other members will be standing for re-election for a further term of office.
SSM Textile Machinery’s net revenues came to CHF 72.9 million (2010: -15 per cent / -12 per cent after currency adjustment), while EBITDA amounted to CHF 8.8 million (-32 per cent), representing a healthy margin of 12 per cent (15 per cent).
At the beginning of the year, the previous year’s positive market environment already started showing the first signs of slowing down in the core Asian markets of India and China. This situation became more accentuated in the second half of the year.
Rising cotton prices and more challenging project financing conditions in China dampened the investment climate. This contrasted with better-than-expected trends in Bangladesh and Turkey. The opening up of attractive new markets in eastern Europe continued in 2011.
The rise in cotton prices favored investment in the processing of synthetic fibers, an area in which SSM is excellently positioned with products in the air texturing segment. At the end of the year, this attractive area of business was further strengthened by the acquisition of Giudici. The company is a leader in false twist texturizing technology, a system for processing ultra-fine nylon yarn and similar materials. Giudici’s yarn texturizing technology complements SSM Textile Machinery’s existing air-texturizing knowhow.
Product innovations unveiled at ITMA in Barcelona and brought to market underline the company’s technology leadership. High quality, flexibility and efficiency at all production sites guarantee enduring competitiveness and profitability.
All divisions began the new year at roughly the same level as the previous year. SSM Textile Machinery and Ismeca Semiconductor are expected to see business pick-up in the second half of the year.
At 3A Composites, extensive restructuring measures and organizational adjustments led to significantly leaner structures and a reduced cost base. These measures mark the successful completion of the integration of the Composites activities into the Schweiter Group. The full impact of these cost savings will be felt from 2012 onwards.