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However, the total included a CHF 14.3 million favourable currency effect. When factored out organic sales grew by 0.1% in the half-year. Profitability increased significantly, taking the EBITA margin to 13.6% compared with 10.6% for first half of 2015 – which was impacted by the sudden appreciation of the Swiss franc.
Analysis by segment reveals varying performances. Fastening Systems sales increased 11.9% (10% at constant exchange rates) to CHF 176.7 million. EBITA was CHF 15.9 million, 8.6% to sales. Higher
profitability was attributed to productivity enhancement measures, the launch of new products, and the absence of one-off effects that negatively impacted 2015 results. The Construction division achieved good sales growth with North America continuing to show robust demand and improvement in European business. Relocation of finishing operations to the Czech Republic made a significant contribution to the divisional margin in 2016. SFS reported considerable progress in the strategic partnership with HECO following consolidation of production activities.
The Riveting division also delivered solid sales growth in the half-year, driven primarily by industrial applications, solutions for the automotive industry and the retail business. GESIPA® strengthened its
market position through the launch of Flow Drilling Rivet® technology and a new generation of Bird Pro battery powered blind rivet setting tools.
The Distribution & Logistics segment, which does almost all its business within Switzerland, saw sales grow 1.3% (0.8% at constant exchange rates) to CHF 156.5 million. EBITA was CHF 12.7 million (8% to sales). While the effects of the Swiss franc appreciation last year still reverberates in the market the ramp up of new customer projects contributed strongly to the segment’s performance.
The Engineered Components segment reported sales at CHF 355.6 million representing a 0.7% decrease (-5.1% at constant exchange rates). Profitability improved significantly, lifting the EBITA margin to 19.9% from 15.4% in the same period 2015. Improvement in EBITA to CHF 72.2million was attributed to the measures taken to counteract the surge in the Swiss franc last year together with productivity gains and economies of scale in the Automotive and Industrial divisions.
In Automotive, SFS reported the successful realisation of new projects, particularly in connection with self-driving cars. Its joint venture in Tianjin, China, "displayed very robust momentum". Unisteel first half sales were depressed by a renewed drop in demand for hard disk drives alongside other factors but SFS says the division defended its market position well. For the Industrial division the ramp-up of Airbus 350 was the greatest contributor to growth. Stamm AG’s competence in micro injection moulding strengthened SFS’ position in the medical components industry.
-The 18th China(Guangzhou)Int’l Fastener
& Equipment Exhibition
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