Zurich, Switzerland, April 15, 2020 – Gurit (SIX Swiss Exchange: GUR) today reports unaudited results for the first quarter of 2020. Total net sales grew by 0.9% on a currency adjusted basis, -4.6% in reported CHF versus Q1/2019. The divestment of Automotive effective February 1, 2020 had a negative sales impact of -3.1 million CHF or -2.1% on net sales comparing with Q1/2019.
The corona virus pandemic affected the Asian business of Gurit significantly in Q1/2020. All business units, especially the Tooling business suffered travel and supply chain restrictions affecting Gurit’s own and customer operations. Meanwhile the situation is normalising in Asia for the most part, but Corona now affects the Western Hemisphere, which may have more severe business impacts as of now.
Composite Materials achieved net sales of 66.2 million CHF for the first quarter of 2020. This represents an increase of 9.1% (currency-adjusted: +15.2%) compared to net sales of 60.7 million CHF in the first quarter of 2019. The Asian operations had to significantly reduce output but remained open during most of the time in Q1/2020.
Kitting recorded solid sales of 48.1 million CHF in Q1/2020. This is an increase of 39.9% compared to the previous year (currency-adjusted: +48.8%). The Asian operations had to very significantly reduce output but managed to stay open during most of the time in Q1/2020.
Tooling saw a significant decline in sales by -46.0% (currency-adjusted: -42.5%) from 36.1 million CHF in the previous year to 19.5 million CHF in Q1/2020. The Corona virus situation caused customer project installation delays, product handover inspections not occurring, coupled with transportation issues which altogether had a very significant negative impact on the business. We did not encounter project cancellations of relevant size, but significant re-scheduling of customer projects into Q2 and Q3/2020. As the situation normalises in China we are now catching-up.
Aerospace revenues saw a decline of -6.8% (currency-adjusted: -3.3%) to 13.4 million CHF in the context of a difficult market environment.
The discontinued Composite Components reports a -68.0% decline (currency-adjusted: -66.1%) to 1.4 million CHF. The Components business has been sold effective February 1, 2020.
Change in reported CHF
Change @ constant 2019 rates
Total Continued Operations
The Gurit teams, together with all our business partners have sustained the Q1/2020 challenges of the Corona Virus pandemic with outstanding motivation and confidence. Gurit is thankful and proud of all of them.
Meanwhile the Corona pandemic moved on to the Western Hemisphere, bringing challenges of business disruptions in our supply chain and customer’s business. Some Gurit sites were shut and re-opened soon after under best practice health and safety measures and daily situational monitoring by Business Unit and the Executive Management. Several sites operate currently at very low capacity utilisation due to the issued restrictions.
Gurit operates under a guidance of achieving around 600 CHF million of net sales with an 8.5-11% operating profit margin for 2020. This guidance is under the caveat that the Corona pandemic will not affect our business with more than one full month of effect wherever around the globe we are under its impact.
Annual General Meeting of Shareholders
The Annual General Meeting today approved all motions proposed by the Board of Directors. Gurit will thus pay out a total of 25.00 CHF per listed bearer share to shareholders. Gurit bearer shares will be traded ex-dividend as from April 17, 2020 (ex-dividend date). The positions entitled to dividend payments will be recorded on April 20, 2020 (record date), and the payments will be made on April 21, 2020 (payment date).
Gurit Half-Year 2020 Report
Gurit will publish its half-year report 2020 on August 17, 2020. Management will also discuss the results in further detail at a joint media and analyst conference on August 17, 2020, at 09:00 a.m. CEST. The conference will take place at the Marriott Hotel, Neumuehlequai 42, CH-8006 Zurich, Switzerland. The presentations will be held in English and will also be accessible as webcast at www.gurit.com/Investors/Webcasts where an archived version will later be available fordownload.
For up-to-date information on Gurit`s financial calendar, please visit http://www.gurit.com/Investors/Events
The subsidiaries of Gurit Holding AG, Wattwil/Switzerland, (SIX Swiss Exchange: GUR) specialize in the development and manufacture of advanced composite materials, composite tooling equipment and core kitting services. The product range comprises structural core materials, fibre reinforced prepregs, wind blade moulds, formulated products including coatings, resins and adhesives as well as structural composite engineering. Gurit supplies global growth markets such as the wind turbine industry, aerospace, marine, rail and many more. Gurit operates production sites and offices in Canada, China, Denmark, Ecuador, Germany, Indonesia, India, Italy, Mexico, New Zealand, Poland, Spain, Switzerland, Turkey, United Kingdom and the United States.
Gurit Group Communications
Thomas Nauer; phone: +41 44 316 15 55; e-mail: thomas.nauer (at) gurit.com
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Forward-looking statements: To the extent that this announcement contains forward-looking statements, such statements are based on assumptions, planning and forecasts at the time of publication of this announcement. Forward-looking statements always involve uncertainties. Business and economic risks and developments, the conduct of competitors, political decisions and other factors may cause the actual results to be materially different from the assumptions, planning and forecasts at the time of publication of this announcement. Therefore, Gurit Holding AG does not assume any responsibility relating to forward-looking statements contained in this announcement.