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Gurit`s Composite Materials Business achieved mixed results in its various market areas. In Wind, it suffered from the demand halt in the Indian wind energy industry as of spring 2017 and a lower demand in the wind energy industry in China compared to the prior year. Net sales to the wind market decreased by 13.9% (currency-adjusted: ‑13.8%) to CHF 128.2 million in 2017. Material supply to other material markets slightly increased by 1.3% in reported Swiss francs (currency-adjusted: 1.8%), mainly due to higher material sales to the marine and industrial sectors. In total, the Composite Materials Business achieved full-year sales of CHF 246.4 million in 2017. This represents a decrease of 7.2% (currency-adjusted: -7.0%) compared to full-year sales of CHF 265.6 million in 2016.
Gurit`s Composite Components Business was able to return to the growth track based on a number of new projects won and some of them entering into production in 2017. In total, the Composite Components Segment achieved net sales growth of 28.3% (currency-adjusted: 31.5%) to CHF 22.3 million in 2017.
Gurit`s Tooling Business took benefit from the ongoing demand for moulds for longer wind blades to build ever more efficient turbines as well as the winning of two more global key customers. Net sales thus increased by 33.1% (currency-adjusted: 35.5%) to CHF 91.8 million in 2017 compared to net sales of CHF 69.0 million in 2016.
Midterm Profitability Target Met for the Third Consecutive Year
Despite lower capacity additions in the Indian and Chinese wind energy markets, the continued market contraction in the Middle Eastern construction industry and the concomitant lower sales revenues generated in 2017, Gurit was able to achieve an operating profit margin of 10% of net sales in 2017, including the announced restructuring cost related to the transfer of prepreg production from UK to Spain (2016: 10.5% of net sales). The Group operating profit amounted to CHF 35.9 million in 2017. Gurit achieved a net profit of CHF 24.9 million in fiscal year 2017 (2016: CHF 26.0 million). This equals to earnings per listed bearer share of CHF 53.32 (2016: CHF 55.64).
Continued Positive Cash Flow and Strong Balance Sheet
Gurit generated a positive net cash flow from operating activities of CHF 30.6 million and closed the year with a net cash position of CHF 32.7 million (2016: CHF 37.2 million) and an equity ratio of 71.1% (2016: 76.6%). Capital expenditures were slightly higher than in 2016 and amounted to CHF 11.7 million in 2017 (2016: CHF 10.5 million).
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Key Financial Figures
rounded up to MCHF
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2017
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2016
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% change in reported CHF
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% change at constant 2017 rates
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Wind Energy
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128.2
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149.0
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-13.9%
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-13.8%
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Other Material Markets
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118.2
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116.6
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1.3%
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1.8%
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Composite Materials
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246.4
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265.6
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-7.2%
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-7.0%
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Composite Components
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22.3
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17.4
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28.3%
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31.5%
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Tooling
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91.8
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69.0
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33.1%
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35.5%
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Total Net Sales
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360.5
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352.0
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2.4%
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3.1%
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Operating Profit
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35.9
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36.8
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EBIT
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35.9
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36.8
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Profit for the period
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24.9
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26.0
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Operating cash flow
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30.6
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37.9
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Capital expenditures
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11.7
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10.5
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Equity in % of total assets
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71.1%
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76.6%
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Outlook 2018
In total, Gurit currently expects to achieve low single-digit revenue growth and profitability at the upper level of the Company`s target operating profit margin range of 8-10% for the fiscal year 2018.
Annual General Meeting of Shareholders on April 17, 2018
The Board of Directors will propose to the Annual General Meeting of Shareholders (AGM), scheduled for April 17, 2018, to distribute a total of CHF 9.4 million corresponding to CHF 20.00 per listed bearer share to shareholders. The full invitation to the AGM including all motions proposed by the Board of Directors will be available for Download at http://www.gurit.com/Investors/AGM from March 14, 2018, onwards.
Online publication of Annual Report 2017, Media/Analyst conference and international Webcast today, Tuesday, March 13, 2018
Gurit has published its Annual Report 2017 online at http://www.gurit.com/Investors/Reports. Management will discuss the results today in further detail at a joint media and analyst conference in Zurich at 09:00 a.m. CET. The conference will take place at the Zurich Marriott Hotel, Neumuehlequai 42, CH-8006 Zurich. As always, the presentations will be held in English and will also be accessible as webcast at http://www.gurit.com/Investors/Webcasts where an archived version will later be available for download.
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