First half-year 2010:    

- Good increase of order entries
- Volume still insufficient to reach operating profit
- Group Transformation Program continues as planned in 2009
 

Second half-year 2010:    

- Order backlog allows good utilization of the Group’s production capacities

The consolidated sales of the first six months 2010 amounted to CHF 560.1 million, representing an increase of CHF 94.5 million or +20.3% compared to the same period in 2009. This evolution is due to the following elements:

Compared to the 2009 half-year figures, the sales by Business Unit (BU) reached 146.6% for the BU Sheet-fed, 91.3% for the BU Web-fed, and 114.9% for the BU Services.
 

 
Operating loss

The operating loss amounted to CHF 27.3 million compared with the operating loss of CHF 79.3 million for the same period in 2009.

The improvement of the operating result is due on the one hand to the increase in volume and on the other hand to the cost reduction measures initiated in 2009. Furthermore, it has to be noted that the first half-year 2009 was negatively influenced by restructuring and other one-time costs for an amount of CHF 13.6 million, whereas the impact of this type of cost is insignificant in 2010.

For the first half of 2010, the operating results of the three Business Units amounted to:


Net loss

Influenced by tax income in the amount of CHF 7.7 million, the net loss amounted to CHF 23.5 million (first half-year 2009: CHF 70.2 million).
 

Outlook for the second half of 2010

The second half-year 2010 started with a higher order backlog than the one at the beginning of the year. As of today, and at current exchange rates, the estimated sales are above the objective of CHF 1.25 billion set at the beginning of 2010. With this business volume, a good utilization of the Group’s production capacities is expected for the rest of the year.

The progressive recovery of the worldwide economic situation, as well as the first results of the Group Transformation Program, will help the Group to regain a positive underlying operating result for the full year.

2010 will however be influenced as expected by transformation costs for approximately CHF 15 million, whereas income of about CHF 75 million (before tax impact) from the sale of the Prilly site in Switzerland will have a positive impact on the Group’s operating result.
 
Bobst Group SA, Lausanne/Prilly, 1 September 2010