Gurit reports 15.4% higher net sales for first 9 months of 2012, but a reduced outlook for the global Wind Energy market calls for restructuring

 

 
  • Struggling Wind Energy market forces Gurit to reduce its outlook for the coming 15 months and to adjust its production capacity, mainly in glass fibre prepreg in China and Canada.
  • Anticipated restructuring charges of around CHF 12 million will reduce the operating profit margin for 2012 to some 2 to 4%.
 

Zurich/Switzerland, October 26, 2012. Gurit reports 15.4% higher net sales of CHF 287.2 million for the first 9 months of 2012 over the same prior-year period, driven by a strong progression in Wind Energy, Automotive and Marine sales. The recently reduced outlook in the Wind Energy market, especially in the US and China, suffering from over-capacities, price pressure and the expiry of the US tax incentives, forces Gurit to adapt its production capacity. Gurit therefore mothballs its prepreg production in Canada and China and reduces its global work-force by some 150 employees. The related restructuring costs, including impairment charges for fixed assets, mainly, are estimated to amount to approximately CHF 12 million, of which some CHF 3 million will be cash effective. Net sales for the full year 2012 are expected to be around CHF 355 million and the full year operating profit margin including all restructuring charges is forecast to be in the range of 2 to 4% of net sales. Excluding all the one-off charges, the operating profit margin for the full year should, however, almost reach the guidance provided earlier.

 

For 2013, Gurit expects significantly lower sales to the Wind Energy market, but a strongly growing Automotive business thanks to additional customers and larger car body part series, as well as increased material shipments for industrial applications in Business Unit Marine and some upside potential in Aerospace. The component business around Engineered Structures is also expected to grow markedly, pursuing opportunities on tidal turbines, composite parts for modular bridges and light-weight applications for buses. Gurit’s Tooling business suffered in 2012 from the low investment activity in the Wind Energy market, but is expected to recover slightly compared with 2012, and is exploring opportunities beyond the Wind Energy market.

                                             

 

 

 

Net sales

First 9 months

Sales by quarter

in CHF 1000

2011

2012

Change in reported CHF

Change @ ytd Sep 2012 transl.

Q3
2011

Q1
2012

Q2
2012

Q3
2012

Wind Energy

138’871

178’462

28.5%

23.2%

48’793

62’250

58’494

57’718

Tooling

31’711

20’531

-35.3%

-41.2%

13’051

3’764

13’617

3’151

Transport

39’554

43’275

9.4%

10.2%

11’482

14’164

13’938

15’173

Marine

36’228

42’059

16.1%

9.9%

11’886

14’524

13’097

14’438

Eng. Structures

2’554

2’826

10.6%

4.6%

608

1’056

743

1’027

Total Group

248’919

287’153

15.4%

10.4%

85’820

95’757

99’888

91’507