Schaffner Group with further Increase in Sales and Earnings

The Schaffner Group continued to grow during the first half of fiscal 2010/11 and considerably exceeded the previous year’s results. Growth in China, expansion of sales operations in the Asia-Pacific region and product innovations contributed to these results as did strong demand from the photovoltaic industry. Consolidated net sales increased by 17.2% (28.7% in local currencies) to CHF 99.2 million (HY1 2009/10: CHF 84.6 million). The operating result rose to CHF 9.0 million (CHF 5.6 million), while the EBIT margin expanded to 9.1% (6.6%) and net profit increased to CHF 7.2 million (CHF 3.8 million). During the first six months of fiscal 2010/11, the Schaffner Group posted order intake of CHF 102.3 million (CHF 98.3 million), with a book-to-bill ratio of 1.03.
Demand remains high for EMC and power quality solutions for use in energy-efficient drive systems and electronic motor controls as well as rail technology. Some late-cyclical EMC markets – particularly for machine tools and robotics – are continuing to recover. The new power quality products as well as market share gains among distribution customers are supporting the business volume. Sales on the automotive market are experiencing consistent growth at a high level. After last year’s strong showing, only the photovoltaic market is likely to see a drop in demand. Assuming that exchange rates remain basically stable, the Schaffner Group expects that sales and the operating result for the second half-year will be comparable to the first half, which, assuming largely steady exchange rates, would indicate a sales figure for fiscal 2010/11 of approximately CHF 200 million and an EBIT margin of at least 9.0%.
The picture shows Alexander Hagemann, Schaffner's Chief Executive Officer.