Press release - 6th April 2006
Division : Corporate
Annual results 2005 of Metalor Technologies International SA
Metalor closed the year 2005 with a good result. The consolidated net sales of the Metalor Group (without the value of the precious metal) amounted to CHF 247.9 Mio., 8% lower than in the previous year. Excluding the net sales for 2005 of the spun-off Dental Division, the comparable growth in sales amounted to 4%. The operating result (EBIT) increased from CHF 17.3 Mio. to CHF 21.4 Mio. in 2005, an increase of 24%. Operating costs were reduced by 25% to CHF 77 Mio. The highest impact on this reduction resulted from the spin-off of the Dental Division. The net income of CHF 40.8 Mio. includes a non-operating gain of CHF 32.1 Mio. which was mainly generated by the final sale of financial assets but was also influenced by one-off costs of CHF 5.1 Mio. for impair-ments of unused buildings. As foreseen since the take-over of the majority of the company by private investors, UBS AG sold its shares to the company and is no longer a shareholder. UBS AG remains an important business partner of Metalor. Metalor employed at the end of 2005 worldwide 1’151 people.
The Refining Division performed well in Switzerland, while the US operation was restructured and suffered a loss. The reduced cost basis will allow us to achieve a positive result in 2006. Overall, sales volumes were 3% lower than the previous year and with a lower profit, due to losses in the United States.
The Advanced Coatings Division performed below expectations in terms of sales, but improved its profitability. The slowdown in the European plating industry was the main reason for a weak first half of the year. Reduced operating costs and good sales towards the end of 2005 contributed to an 8% EBIT margin for the year. The restructuring of our French activities are finalized, and all remaining costs are provisioned.
The Watches and Jewelry Division increased its sales volume by 12%. The profitability was negatively influenced by increased precious-metals leasing costs which could not be fully passed on, and did not reach expectations.
The Electrotechnics Division continued its strong growth in sales and profitability. Turnover increased by 15% and the EBIT by 21%. Preparations for a market entry in China were made during the year. The operation will start in the second quarter 2006.
The Dental Division was operationally spun-off as per January 1st, 2005. The legal transaction took place in November. The equity of the group was reduced by CHF 18.9 Mio. through this transaction.
In 2005 a dividend of CHF 500 per share (CHF 5.3 Mio. in total) was paid to the shareholders. Shareholder equity at year-end 2005 amounted to CHF 337 Mio. or 69% of the total balance sheet value. The Group has a net cash position of CHF 52.5 Mio. as at 31.12.2005.
For the actual year we expect a continued stable development of our business.
Further information and our annual report in English and French language are available on our internet site www.metalor.com.
For any questions please contact : Telephone +41 (0)32 720 63 70
Fredy Hiltmann mobile +41 (0)79 405 82 62
Chief Financial Officer firstname.lastname@example.org
Metalor in brief: Metalor supplies precious metals and advanced materials to partners in industries as varied and demanding as electronics and electrical engineering, medical and dental technology and the manufacture of de luxe watches. The know-how which Metalor has developed over the years, the exceptional quality of its products and its ability to anticipate market trends and requirements have earned the company a reputation for excellence all over the world.