SGS Net Up 4.9% In '11; To Buy Back CHF250 Million In Shares

SGS S.A. (SGSN.VX) Tuesday reported a 4.9% increase in full-year net profit and said it will launch a 250 million Swiss franc share buy-back program.

MAIN FACTS:

- The SGS Group delivered a strong performance in 2011 with revenue growth of 13.7% over prior year, on a constant currency basis, to CHF4.8 billion.

- Organic revenue growth reached 10.5% supported by all regions and by particularly strong activity levels in Minerals, Consumer Testing, Industrial and Environmental services.

- Adjusted operating income, rose 10.7% in the year on a constant current basis to CHF815 million, resulting in a margin of 17.0% slightly down from 17.4% in prior year, due to investments made to sustain long-term growth targets.

- Net profit gained 4.9% to CHF534 million on a constant currency basis.

- Operating cash flows remained strong at CHF690 million, enabling the Group to comfortably fund CHF337 million of fixed asset investments and complete twenty-two acquisitions for a total cash consideration of CHF104 million.

- During the year, the Group also raised CHF725 million in additional liquidity through the issuance of corporate bonds.

- The Board of Directors will propose a dividend of CHF65 per share, CHF30 representing an ordinary distribution of 43% of net profit, and an additional CHF35 reflecting the healthy cash generation capabilities of the Group.

- The Board of Directors has also authorised another share buy-back programme of up to CHF250 million.

-Zurich Bureau, Dow Jones Newswires, +41 43 443 80 47; zurichdjnews@dowjones.com

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