Feintool demonstrates its strength and secures significant contracts in the first half of the year
August 16 2023 - 12:30AM
Feintool demonstrates its strength and secures significant
contracts in the first half of the year
Ad hoc announcement pursuant to Art. 53 LR
Feintool achieved sales of CHF 450.0 million and a
positive operating result (EBIT) of CHF 12.2 million (2.7%) from
January 1 to June 30, 2023, just below its target of 3%. The
company slightly raises its sales guidance to CHF 850-900 million
for the entire fiscal year, and confirms its profitability guidance
(EBITDA margin of 10% and an EBIT margin of around
3%).
The Group faced challenges in the first six months due to
external developments. In particular, the sudden turnaround in
China's corona policy had an impact on the market in Asia. Original
Equipment Manufacturers (OEMs) closed their automotive plants,
which impacted sales. Since the start of the COVID-19 pandemic,
persistently high inflation and rising energy prices have also
affected the profitability of the business, price adjustments and
influencing the entire supply sector. By contrast, bottlenecks in
the supply chains have eased further, particularly in the
procurement of semiconductors.
Despite these challenges, Feintool has taken proactive and
successful steps as a key player in the transformation of the
automotive industry. By strategically realigning its approach, the
share of sales attributed to components for combustion engines was
reduced to less than 50%. Feintool is focusing on promising
solutions for electric and hydrogen mobility as well as the
generation of renewable energy through wind power and industrial
electric drives. In this area, Feintool is one of the largest
suppliers of main drives for e-cars and e-commercial vehicles.
Solid performance despite challenges
In light of these external and industry-specific conditions, the
Feintool Group achieved sales of CHF 450.0 million by June 30,
2023. As a result of the sale of the capital goods business in the
spring, with Feintool retaining a minority stake of 15 %, the
company adjusted the sales forecast for 2023 in May. The operating
result (EBIT) for the first six months amounted to CHF 12.2
million, and the EBIT margin of 2.7 % was slightly below the target
of 3 %. while the 10 % EBITDA target was narrowly missed, arriving
at 8.9 %. Feintool remains optimistic and expects to rebound from
the slower performance experienced in the first half of the year
within its Asian market, and is positioned for growth during the
final two quarters. As a pure player, the Group is a global leader
in high volume parts production.
Significant major orders
In Europe, Feintool landed a multi-year order from a renowned
American automotive manufacturer in July 2023. The order
encompasses the supply of stators and rotors for the electric main
drive of passenger cars and has a lifetime sales volume in the
three-digit million euro range over six years. Our one-of-a-kind
glulock MD bonding technology is being used in high volume
production for the first time in the manufacture of these
components.
Expansion in Asia and focus on
sustainability
Given the significance of the Chinese market for
the automotive industry, Feintool plans to further expand in Asia
and increase its sales volume from the current around CHF 90
million to CHF 150 million by 2026. To achieve this, the Taicang
site near Shanghai has been strengthened and the expertise of the
Stamping Europe business unit (in electrolamination stamping) is
being established there. Feintool's innovative, patented glulock®
gluing technology for rotors and stators is also generating
significant customer interest. In addition, in collaboration with
laser specialist SITEC, a new facility has been built for the
production of metallic bipolar plates. These plates form the heart
of a fuel cell for hydrogen-powered applications. Success has
confirmed our investments in Taicang: This year Feintool has
already been able to assert itself against stiff competition in
China and secure a major contract from an established fuel cell
manufacturer. Series production of the metallic bipolar plates for
a new generation of fuel cells will begin in 2024. Feintool's
engineering expertise and local presence were decisive in winning
the contract.
Feintool also places great emphasis on sustainability and
transparency. The sustainability report for the 2022 financial
year, marked the company’s fourth consecutive annual report.
Following publication, Feintool received its first ESG rating from
the analysts at Morningstar/Sustainalytics in the second quarter of
2023. With a very good rating of 17.7 (low risk), the Group was
rated as outstanding in terms of managing industry specific ESG
risks.
Outlook and guidance
Feintool is confident that because of its Asian operations, it
will be able to offset the challenges it faced in the first half of
the year during the final two quarters. The company expects sales
of around CHF 850 - 900 million in the 2023 financial year, with an
EBITDA margin of around 10 % and an EBIT margin of around 3 %.
Feintool continues to focus on the consistent implementation of its
strategy and strong positioning in the promising markets of
electromobility and generators.
About Feintool
Feintool is an internationally active technology market leader
in the field of stamped electro sheet products, formed steel
components, and fineblanking. Cost-effectiveness, superior quality,
and high productivity distinguish these technologies.
As an innovation driver, Feintool continually pushes the
boundaries of these technologies and develops intelligent solutions
to meet its customers’ requirements. Feintool offers innovative
tools and state-of-the-art manufacturing processes for all aspects
of high-volume sheet metal applications in the automotive industry
and other demanding industrial sectors as well as renewable
energies. The processes used to support the megatrends of green
energy generation, storage, and application.
Founded in 1959 and headquartered in Switzerland, the company
owns 17 production plants in Europe, the United States, China, and
Japan, ensuring proximity to its customers. Around the globe, about
3,300 employees and around 100 apprentices are at work on new
solutions to create key advantages for Feintool customers.
Overview of key financial indicators
|
Jan 1 – June 30, 2023 1) in CHF
million |
Jan 1 – June 30, 2022 1) in CHF
million |
Change in % |
Change in lo- cal currency in
% |
Net revenue of the Feintool Group |
450.0 |
397.6 |
13.2 |
18.0 |
System Parts Europe |
321.5 |
255.0 |
26.1 |
30.3 |
System Parts USA |
91.1 |
101.6 |
-10.4 |
-7.3 |
System Parts Asia |
39.7 |
43.4 |
-8.5 |
5.5 |
Earnings before interest, taxes, depreciation, and
amortization (EBITDA) |
40.3 |
44.0 |
-8.6 |
-3.0 |
Earnings before interest and taxes
(EBIT) |
12.2 |
16.2 |
-25.1 |
-18.2 |
System Parts Europe |
9.7 |
15.9 |
-39.1 |
-36.1 |
System Parts USA |
7.4 |
3.7 |
101.6 |
108.5 |
System Parts Asia |
1.1 |
2.0 |
-47.7 |
-68.1 |
Group result |
6.5 |
10.4 |
-37.7 |
-15.6 |
Free cash flow |
-0.4 |
-51.5 |
|
|
1 Only continuing operations (without Fineblanking Technology
segment).
|
June 30, 2023 in CHF
mil-lion |
December 31, 2022 in CHF
mil-lion |
Change in % |
Total assets |
864.4 |
915.0 |
-5.5 |
Shareholder’s equity |
505.4 |
540.5 |
-6.5 |
Net debt |
51.4 |
42.1 |
22.2 |
Employees |
3’284 |
3’390 |
-3.1 |
Trainees |
92 |
101 |
-8.2 |
All the information related to Feintool’s results for the
first half of 2023 can be found in the 2023 half-year
report https://www.feintool.com/financial-results/ |
Feintool International Holding AGIndustriering
83250 LyssSwitzerland
Media spokespersonKarin LabhartPhone +41 32 387
51 57Mobile +41 79 609 22
02karin.labhart@feintool.comwww.feintool.com
The press release can be downloaded from the following
link:Press Release (PDF)
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