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Gurit posts double digit sales growth in 2014

20 Mar '15

3 min read

Swiss advanced composites producer, Gurit said, driven by generally favourable markets; it posted double digit sales growth across all market segments for the fiscal year 2014.

“A considerable upswing in our Tooling and Automotive business as well as positive demand for core materials were the main contributors to the increase of net sales to CHF 335.8 million for 2014,” it added.

Operating profit rose to CHF 14.2 million or 4.2 per cent of net sales and net profit to CHF 11.1 million in the reporting year, while Composite Materials achieved full-year sales of CHF 256.7 million in 2014.

“This increase of 13 per cent from last year resulted from upturn in wind energy business, rise in demand from marine industry and substantial growth in material supply to other industrial markets,” it said.

Sales contribution from wind energy rose 11.8 per cent year over year to CHF 131.2 million, with other material markets contributing CHF 125.5 million to total group sales.

Gurit Composite Systems and Engineering reported a surge in revenues by 46.9 per cent over 2013 to CHF 79.1 million from excellent growth in its tooling business fueled by the wind energy uptake in Asia.

“Sales from the automotive components business in 2014 accounted for CHF 24.4 million, up a massive 62.9 per cent over the previous year,” it informed in a press release.

Tooling contributed CHF 46.8 million to total group sales, while Engineered Structures sales grew to CHF 7.9 million in 2014.

Gurit achieved an operating profit of CHF 14.2 million in 2014 as against CHF 6.5 million in 2013 and operating profit margin improved to 4.2 per cent in 2014 from 2.3 per cent in 2013.

“Profitability benefited from the positive sales development in the tooling business and other rewarding segments but was still impacted by operational inefficiencies in both business segments,” Gurit explained.

Lower but improving margins in the wind-related material supply also had adverse effects on profitability in 2014.

After tax expenses of CHF 4.1 million, Gurit reported a net profit of CHF 11.1 million in 2014 compared to just CHF 0.1 million in 2013.

Gurit generated a positive cash flow from operating activities of CHF 7.6 million and closed the year with a net cash position of CHF 4.2 million as against CHF 6.4 million last year.

Capital expenditures increased to CHF 9.2 million from CHF 6.2 million in 2013, with the biggest expense coming from upgrading of existing equipment and extension of production capabilities at various sites.

In 2015, Gurit expects favourable demand in the wind energy and automotive materials businesses, while it anticipates the aero and marine markets to progress moderately. (AR)

Fibre2fashion News Desk - India