2011 Business Year: Higher sales and stable earnings

Gränichen, Switzerland, 20 January 2012 – Zehnder Group, with international operations in the indoor climate sector (radiators and ventilation), reported sales of EUR 516 million, an increase of 8%, for the 2011 business year (unaudited, EUR 476 million in 2010). The radiator segment accounted for 68% (2010: 70%) of this total and the ventilation business for 32% (2010: 30%). Organically and foreign exchange adjusted, sales revenues rose by 8%. A continuing high margin of some 10% is anticipated with regard to the operating profit (EBIT). Thus EBIT and net income should remain at the prior year's level. Results for 2011 and the annual report will be published on 23 March 2012.


Higher sales in most of the Group's markets

After sales had already shown a marked upward trend in the first half of 2011, sales revenues for the entire business year totalled EUR 516 million, up 8% on 2010. At the same time, the EUR 500 million threshold was surpassed for the first time. The slightly slower growth in the second half of the year is attributable to the basis effect resulting from extremely strong growth in the second half of 2010. Sales growth overall was particularly satisfying in view of the competitive pressure that continued unabated in the reporting year, and given the economic climate which, on the whole, tended to give cause for concern. With only a very few exceptions, all the markets relevant for Zehnder Group's business activities contributed to yet another year of noticeable growth.

EUR 348 million of Group sales (+4%, in local currencies and organically +4%) is attributable to the radiator business. In Europe, sales revenues from radiators rose by 4% (in local currencies and organically +3%) to EUR 308 million, whereas the ventilation segment contributed EUR 153 million or 16% more than in the prior year (in local currencies and organically +18%). In numerous countries the market share was increased again,  otably in the Group's two main markets, France and Germany. In North America total sales rose by 3% to EUR 28 million (+8% in local currencies) and in China by 26% to EUR 26 million (+21% in local currency and organically).


Ventilation segment accounts for roughly one third of total sales

With 32% or EUR 167 million (+19%, in local currencies and organically +21%) in the reporting year, ventilation systems contributed almost one third to total Group sales. Apart from the Netherlands, the UK and Belgium, Zehnder Group reached double-digit sales growth in all its relevant markets.


High margin maintained

As a result of higher investments in sales and marketing as well as through the introduction of SAP and the strong Swiss franc, the operating profit margin for the entire year will be roughly 10%, and thus marginally lower than for 2010. Consequently EBIT and net income will probably remain at the prior year's level.

Prospects for 2012

2012 will be a challenging year in view of the critical economic environment resulting from the debt and financial crises and the continuing volatile foreign exchange situation; however, the outlook varies from country to country. Overall, Zehnder Group expects sales revenues to increase slightly in the radiator segment and, once again, anticipates marked sales growth in its ventilation business. Thus the Group's ventilation products will contribute an even higher share to total sales. Both segments are expected to increase their market share further. The operating margin will probably be slightly above the 2011 level.