Business news . Switzerland, Gurit’s 1HY results show net loss for the period of CHF 2.4 million

Gurit (SIX Swiss Exchange: GUR) achieved net sales of CHF 129.7 million in the first six months of 2013. This represents a decline of 33.7% over the respective strong, prior-year period, as already announced and commented on July 12, 2013. The negative sales trend mainly reflects the poor demand and weak price levels in the volatile global wind energy market. Sales to non-wind energy related customers continue to grow and Gurit makes important inroads into new applications for composite materials, parts and services. For the full year 2013, Gurit continues to expect net sales to be somewhat below CHF 300 million and the operating profit margin to reach 3-5%.

Operational and financial result: The low sales level of the first half-year, the resulting low absorption of fixed costs, and fierce price competition particularly in the Asian wind energy markets have led to the compression of the operating profit to CHF 0.6 million. A year ago, Gurit recorded a strong operating profit of CHF 17.2 million, including one-time impairment charges of net CHF 2.9 million. After income tax expenses of CHF 2.5 million, Gurit states a loss for the period of CHF 2.4 million. These tax expenses incurred as Gurit achieved the majority of its profit in higher tax jurisdictions in Europe and did not capitalise tax assets on some losses incurred in other regions.                

Cash flow and balance sheet: Mostly reflecting the significantly lower operating profit before depreciation and amortization (“EBITDA”), cash flow from operating activities declined to CHF 1.7 million compared with a strong CHF 16.8 million generated in the same period of last year. Gurit paid back borrowings of CHF 9.6 million. As sales volumes increased in the second quarter 2013 versus the low volumes recorded in Q4 2012, some cash was also required to finance additional working capital. Together with the CHF 7.0 million distributions to shareholders this turned the net cash position of CHF 6.0 million recorded at year-end 2012 into a net debt position of CHF 1.8 million. The distribution to the shareholders was also the main reason for the small decrease of the equity ratio by 1.1 percentage points from 70.5% at the end of last year to still solid 69.4% as per June 30, 2013.

Sales trends and outlook: Sales to non-wind energy related customers continue to grow and Gurit makes important inroads into new applications for composite materials, parts and services. Going forward, Gurit will better be able to balance out the volatile sales levels in the global wind energy market and achieve growth.

On a sequential basis, Q2 2013 sales grew by 13.1% compared with Q1 2013, confirming the anticipated sales recovery, yet at a lower than expected pace. As announced on July 12, 2013, Gurit expects net sales for the full year 2013 to be somewhat below CHF 300 million and the operating profit margin to reach 3-5%.

About Gurit :

Gurit has established itself as a developer and innovator in the composites industry and positioned itself as the leading global supplier of composite materials, engineering services, tooling equipment, and select parts and systems.

Over 30 years' experience in the practical application of composites across various market sectors and projects, from small parts to large-scale structures, combined with a unique technical approach enables Gurit to offer the complete composite solution. 

Gurit offers a truly global presence with offices, manufacturing sites and a network of distributors across Europe, North and South America, the Middle East, China, Australia, New Zealand and India.