PRESS RELEASE

from Schlatter Industries AG (isin : CH0002277314)

2022 financial year: high order backlog, higher costs weigh on result

Schlatter Industries AG / Key word(s): Annual Results
2022 financial year: high order backlog, higher costs weigh on result

31-March-2023 / 06:01 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 LR
The issuer is solely responsible for the content of this announcement.


SCHLATTER INDUSTRIES AG - SIX SWISS EXCHANGE: STRN - ISIN: CH0002277314


Ad hoc announcement pursuant to article 53 LR   

Schlieren, 31 March 2023. In the 2022 financial year the Schlatter Group generated net earnings that were 16.7% up on the previous year at CHF 110.5 million (2021: CHF 94.6 million) and an order intake of CHF 128.1 million (2021: CHF 135.5 million). The order backlog at the year-end stood at CHF 89.4 million (31.12.2021: CHF 71.8 million). This resulted in an operating result (EBIT) for the period under review of CHF 5.5 million (2021: CHF 5.7 million). The Group posted a consolidated profit of CHF 3.4 million (2021: CHF 4.8 million). A dividend of CHF 0.50 per share is expected for the 2022 financial year.

 

Demand for Schlatter products once again rose sharply in the first half of the 2022 financial year, but in the second half – as expected – fewer orders were placed. In particular, demand for reinforcing mesh systems declined in the second half of the year after the markets had overheated. There was a further volume increase in the after-sales area, however, and the demand for weaving machines for the paper industry was above average. Suppliers' delivery problems slowed sales development and weakened productivity. Rising prices of purchased materials and higher energy costs weighed on the result. The Schlatter Group closed the 2022 financial year with a large order backlog, which is once again higher than the previous year and will utilise capacities in the 2023 financial year. Demand for our products will normalise.

 

Welding segment

The welding segment's net earnings in the 2022 financial year totalled CHF 96.0 million (2021: CHF 79.0 million), with an order intake of CHF 99.9 million (2021: CHF 112.0 million). The order backlog at the year-end stood at CHF 62.5 million (31.12.2021: CHF 58.7 million).

As in the previous year, the Welding segment achieved an above-average order intake – but its profitability was greatly reduced by disrupted supply chains and shortages of key parts for machines and systems, as well as by short-term price increases on the purchasing side and the further appreciation of the Swiss franc. Since machines and systems are sold at fixed prices, the effect of price increases is delayed. Economies of scale due to higher net revenue partly made up for this.

 

Shortages of components, especially electrical and control parts, have led to delays in system deliveries. Schlatter expects to start catching up on the backlog of delayed machines and systems in the second half of the 2023 financial year.

 

Weaving segment

The weaving segment generated orders to the value of CHF 14.4 million in the financial year (2021: CHF 15.6 million) and increased its order intake to CHF 28.2 million (2021: CHF 23.2 million). The order backlog at year-end stood at CHF 26.9 million (31.12.2021: CH 13.1 million).

 

The measures introduced in the previous year at the site in Münster (Germany) are bearing fruit. Despite disrupted supply chains and significantly higher material costs, the site was able to end the 2022 financial year with a profit.

 

On the one hand the above-average order intake was dominated by orders from China, while on the other an above-average number of machines for the thermal treatment of paper machine clothing were sold. The order intake can be expected to return to normal as fewer orders are placed in China in future.

 

Capacity at the Münster site will be fully utilised in the 2023 financial year. It will use the time available to make the cost structure more flexible. To this end a programme of measures has been drawn up, and these are now being implemented.

 

Outlook

The Schlatter Group ended the 2022 financial year with a strong order backlog, which ensures a high level of capacity utilization throughout the 2023 financial year. Now that the situation in procurement markets has more or less returned to normal, the timely implementation of customer projects has priority. Our other priorities include implementing innovations, marketing C-Tec – the new generation of machines for manufacturing technical fabrics – and increasing profitability. Net earnings are expected to be slightly higher in the 2023 financial year. Though the cost situation remains tense, a slight increase in the operating result (EBIT) is expected.

 

2023 Annual General Meeting

At the Annual General Meeting on 4 May 2023 the Board of Directors will propose the payment of a dividend of CHF 0.50 per share for the 2022 financial year.

 

The full 2022 Annual Report can be downloaded from the Schlatter Group website: https://www.schlattergroup.com/en/investor-relations/

 

The German version of this information is binding.

 

Further information

Schlatter Industries AG

Werner Schmidli

Chief Executive Officer 

Telephone +41 44 732 71 70

Mobile +41 79 343 62 62

werner.schmidli@schlattergroup.com

 

 

Schlatter Group: key figures

 

 

2022

2021

Net sales

CHF million

110.5

94.6

Change compared to previous year

%

16.7

20.0

Operating result (EBIT)

CHF million

5.5

5.7

in % of net sales

%

5.0

6.1

Net result (incl. minority interest)

CHF million

3.5

4.9

in % of net sales

%

3.1

5.2

Net result (excl. minority interest)

CHF million

3.4

4.8

in % of net sales

%

3.1

5.1

 

 

 

 

Order intake

CHF million

128.1

135.5

Order backlog

CHF million

89.4

71.8

 

 

 

 

Headcount as at 31 December

FTEs

357

331

Annual average

FTEs

338

328

 

 

 

 

Interest-bearing liabilities

CHF million

7.2

7.0

Net financial position (debt)1

CHF million

1.7

8.1

Gearing2

%

0

0

Free cash flow3

CHF million

-6.5

14.0

 

 

 

 

Current assets

CHF million

61.7

52.1

Non-current assets

CHF million

19.1

19.6

Liabilities

CHF million

49.5

43.5

Equity (incl. minority interests)

CHF million

31.3

28.2

Equity (excl. minority interests)

CHF million

31.2

28.1

Equity ratio (incl. minorities)

%

38.5

39.2

 

 

 

 

Return on equity (ROE)4

%

11.6

19.0

 

 

 

 

Key share figures

 

 

 

Share capital as at December 31

CHF 1000

17 675

17 675

Total registered shares

Number

1 104 704

1 104 704

Of which entitled to dividend payments

Number

1 104 704

1 104 704

Net result per registered share5

CHF

3.10

4.36

Equity per registered share5

CHF

28.20

25.43

Divident per registered share6

CHF

0.50

0

Payout ratio6

%

16.11

0

 

 

 

 

Share price development

 

 

 

High

CHF

30.60

29.60

Low

CHF

20.20

22.00

Year-end

CHF

25.00

23.00

 

 

 

 

Market capitalization

 

 

 

High

CHF million

33.8

32.7

Low

CHF million

22.3

24.3

Year-end

CHF million

27.6

25.4

 

1     Net financial position (debt): cash and cash equivalents less interest-bearing liabilities 

2     Gearing: Net debt divides by equity

3 Cash flow from operating activities less purchase of tangible assets and intangible assets plus sale of tangible assets and intangible assets

4        Net result divided by average equity

5        Determinded on the basis of dividend-entitled shares

In accordance with the proposal submitted to the Annual General Meeting of May 4, 2023

 

 

 

 

 

 

 

 

Schlatter Group (www.schlattergroup.com)
The Schlatter Group is one of the leading specialists in plant engineering for resistance welding systems as well as weaving and finishing equipment for the production of paper machine clothing, wire fabrics and wire mesh. Thanks to its many years of experience in the field of plant technology, its innovative strength and its reliable service, the Schlatter Group – which is listed on the Swiss Reporting Standard of SIX Swiss Exchange – guarantees its customers a range of powerful and high-quality production equipment.

This media information contains certain forward-looking statements, e.g. statements using the words "believes," "assumes," "anticipates," or formulations of a similar nature. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which could lead to substantial differences between the actual future results, the financial situation, the development or performance of the Company and those either expressed or implied by such statements. Such factors include, among other things: competition from other companies, the effects and risks of new technologies, the Company's continuing capital requirements, financing costs, delays in the integration of acquisitions, changes in the operating expenses, the Company's ability to recruit and retain qualified employees, unfavorable changes in the applicable tax laws, and other factors identified in this communication. In view of these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The Company accepts no obligation to continue to report or update such forward-looking statements or adjust them to future events or developments. 

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This information can be downloaded as a PDF from the following link:
Ad hoc announcement pursuant to article 53 LR

If you no longer wish to receive information from Schlatter Industries AG, please send a message to: pascale.lehmann@lehmanncom.ch



End of Inside Information
Language:English
Company:Schlatter Industries AG
Brandstrasse 24
8952 Schlieren
Switzerland
Phone:+41 44 732 71 11
E-mail:info@schlattergroup.com
Internet:www.schlattergroup.com
ISIN:CH0002277314
Listed:SIX Swiss Exchange
EQS News ID:1597707

 
End of AnnouncementEQS News Service

1597707  31-March-2023 CET/CEST

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