Interim report at June 30, 2010: Improved revenues and profitability

Zurich, August 18, 2010. - The Conzzeta Group increases consolidated net revenues by 4.7% to CHF 473.6 million in the first half of 2010, compared with the same period a year ago. The operating result (EBIT) returned to the profit zone at CHF 13.1 million.

The first half of 2010 saw rising demand for industrial products and in the machinery and systems engineering businesses. Developments in the outdoor market and the real estate business remained stable. In this market environment, the Conzzeta Group increased consolidated net revenues by 4.7% to CHF 473.6 million, compared with the previous year (CHF 452.3 million). Adjusted for negative currency translation effects of 1.4% and a divestment effect, the increase was 7.1%. All the business units active in Asian markets benefitted from an early recovery and strong growth in the region.

While the machinery and systems engineering business units began 2010 with order books at a low level, sales of industrial products (Foam Materials and Graphic Coatings business units) grew from the start of the year compared with the same period of 2009. Taking into account changes in inventory, the total revenue of the Conzzeta Group in the first half of 2010 increased by 18.6% to CHF 504.7 million (previous year: CHF 425.4 million).

Thanks to the program of capacity adjustments implemented in 2009 as well as improving demand, the Conzzeta Group was able to post a positive operating result again in the first half of 2010. The Group operating result (EBIT) improved compared with the first half of 2009 by CHF 49.1 million to CHF 13.1 million (previous year: CHF -36.0 million[1]), equivalent to an EBIT margin of 2.6%. The Group result at the end of June 2010 was CHF 11.3 million (previous year: CHF -19.6 million). At the end of the first half of 2010, operating free cash flow amounted to CHF 5.8 million (previous year: CHF 33.8 million). The Conzzeta Group remains solidly financed, with an equity ratio of 76%.

[1] The operating result (EBIT) for the first half of 2009 included provisions of CHF 30 million for the capacity adjustment program.

Business units

The Sheet Metal Processing Systems business unit (Bystronic) generated net revenues of CHF 183.3 million (previous year: CHF 175.9 million) in the first six months of 2010, an increase of 4.2%. Adjusted for currency translation effects, the growth was 4.9%. In Asia and other growth markets, sales increased significantly compared with the previous year. The recovery in Europe was hesitant and differed from country to country. The market situation in the USA was unsettled during the first half of the year. Bystronic's order intake improved towards the end of the first semester, following a generally cautious start to 2010. In spite of the prevailing economic uncertainties, capacity utilization at customers appears to be recovering.

The Glass Processing Systems business unit (Bystronic glass) increased net revenues by 12.6% to CHF 74.8 million (previous year: CHF 66.4 million) in the first half of 2010. Adjusted for currency translation effects, the improvement was 15.9%. The strongest demand stimuli came from Asia, but overall there was evidence of growth in machinery for processing automotive glass as well as in the service and spare-parts business. Competitive pressure remained very high in the first semester, particularly in the architectural glass segment. The business unit invested in cost-reduction measures and product development during the first six months of 2010.

The Automation Systems business unit (ixmation) reported net revenues of CHF 20.7 million in the first half of 2010 (previous year: CHF 28.6 million). Adjusted for divestment and currency effects, the decrease in sales was 12.7%. The decline is attributable mainly to the USA. The Asian markets and the medical technology and alternative energy segments continued to develop well. The automotive industry is showing signs of recovery. The business unit has enough enquiries for automation systems, but customers are still very cautious when it comes to taking investment decisions.

The Foam Materials business unit (FoamPartner) increased net revenues in the first half of 2010 by 18.6% to CHF 65.6 million (previous year: CHF 55.3 million). Adjusted for currency translation effects, the growth was 21.5%. There was a tangible increase in demand for technical foam products from the beginning of the year. The comfort product segment (mattress, cushion and pillow cores) closed the first half of 2010 at the same level as the corresponding period a year ago, although currency effects influenced the competitive situation in the markets.

The Sporting Goods business unit (Mammut Sports Group) generated net revenues of CHF 95.0 million (previous year: CHF 93.9 million) in the first half of 2010, an increase of 1.2%. Adjusted for currency translation effects, the growth was 2.7%. The important markets of Germany and Japan grew in the first half compared with the same period of last year. The new backpack collection and the clothing and climbing harnesses product groups developed particularly well. In the home market of Switzerland, the unit was unable to build on the high level of the previous year, with retailers reporting lower sales, particularly of summer ranges. But overall, the trend in the outdoor market remains positive.

The Graphic Coatings business unit (Schmid Rhyner) reported net revenues of CHF 23.4 million (previous year: CHF 21.0 million) in the first semester, an increase of 11.7%. In Europe and the USA especially, capacity utilization at many customers in the commercial printing and packaging printing segments is still at a much lower level than before the economic crisis. Growth in the Asian markets remains strong.

Trends and outlook

The first six months of 2010 saw an overall improvement in the business environment for the Conzzeta Group. The order intake in the machinery and systems engineering businesses was clearly higher at the end of June 2010 when compared with the very low levels seen the previous year. Conzzeta expects the economic recovery to be sustained through the second half of the year, although the picture for the different market regions and business units will vary. Continued growth can be expected in Asia. In Europe and North America, the market will continue to be affected by considerable uncertainty. Assuming that the upturn in demand continues in the machinery and systems engineering as well as the industrial products sectors, the Conzzeta Group expects another positive result for the second of half of the year. However, further market uncertainties and shifts in the currency situation must be expected. In view of these imponderables, Conzzeta is intent on holding costs down and above all continuing to invest in growth markets.


Conzzeta Group is an internationally active Swiss holding company with approx. 3,300 employees worldwide. Its activities are in the areas of machinery and systems engineering, foam materials, sporting goods, graphic coatings and real estate. Conzzeta's shares are listed on the SIX Swiss Exchange (SWX:CZH).