The Biella Group, Switzerland’s largest office equipment manufacturer with a strong presence in Central and Eastern Europe, improved its operating result by CHF 0.8 million in the first half compared to the previous year, even though this is traditionally the weakest period of the year. For the year as a whole, both sales and profit figures are expected to show a further rise. A change in the membership of the group management will occur at the end of 2006 financial year: Urban Fäh, Biella Group CEO since 2002, will be leaving to take up a new professional challenge. The Board of Directors unanimously appointed the present COO, Marco Arrigoni, as his successor.
This new positive trend at the Biella Group achieved in a trading environment which remains difficult is therefore particularly welcome. The ongoing process of concentration, which once again saw the acquisition this year of second-ranking European competitors, strengthened pressure on prices and margins. On the procurement side, we are confronted with high prices for raw materials and energy.
Despite this difficult environment, the Biella Group saw an increase in its sales profit in the first six months of the current financial year compared to the previous year. The group’s consolidated net sales as at 30.06.2006 were up 4.3% on the previous year at CHF 67.6 million (2005: CHF 64.8 million). This growth was achieved in Poland and Germany while the other markets remained flat.
The operating result (EBIT) of the Biella Group is CHF -0.6 million for the first half of 2006 (2005: CHF -1.4 million). The improvement of CHF 0.8 million is attributable to the restructuring measures and action taken to improve the efficiency of the group. The trend reported at the two production plants in Poland and Hungary, which enabled our competitiveness to be increased, is also most welcome.
At CHF -0.8 million, the net half-yearly result of the Biella Group is also better than the figure for the previous year (CHF -1.3 million). For seasonal reasons, the profit and loss account is traditionally weaker in the first half and improves in terms both of volume and profit in the second half of the year. For the financial year 2006 as a whole, the Biella Group expects to see a slight increase in sales and profit. However, the raw material price increases which have already been announced will have an influence which is impossible to anticipate at this stage.
There will be a change in the group management at the end of the 2006 financial year. Mr Urban Fäh, Biella Group CEO since 2002, has decided to leave the group to take up a new professional challenge. However, he will be performing all his responsibilities within the Biella Group until the end of the current financial year. On 1 January 2007, the new CEO will be Mr Marco Arrigoni who was unanimously appointed by the Board of Directors. Mr Arrigoni has been a member of the Group Management Committee for the past three years in his capacity of COO. At the same time Mr Stefan Bigler, Director of Biella Switzerland, will be joining the Group Management Committee. He will be responsible for the marketing and sales function at the Biella Group.
For further information, please contact:
Mr Daniel Eicher, Board Chairman, 031 859 61 11
Mr Urban Fäh, CEO, 079 512 83 88 / 032 366 33 33
Key figures for the Biella Group – Half-yearly report 2006
|
Profit and loss account |
Jan. - June 06
in CHF mill. |
Jan. - June 05
in CHF mill. |
Trend
% |
Jan. - Dec. 05
in CHF mill. |
|
Net sales |
67.6 |
64.8 |
+4.3% |
163.9 |
|
Operating result EBIT |
-0.6 |
-1.4 |
+57.1% |
6.5 |
|
Net profit |
-0.8 |
-1.3 |
+38.5% |
3.7 |
|
|
|
|
|
|
|
Balance sheet |
30.6.06
in CHF mill. |
30.6.05
in CHF mill. |
Trend
% |
31.12.05
in CHF mill. |
|
Current assets |
90.4 |
84.3 |
+7.2% |
89.1 |
|
Fixed assets |
51.4 |
58.1 |
-11.5% |
54.0 |
|
Total assets |
141.8 |
142.4 |
-0.4% |
143.1 |
|
Borrowings |
54.8 |
62.8 |
-12.7% |
53.6 |
|
Shareholders’ equity (including minority interests) |
87.0 |
79.6 |
+9.3% |
89.5 |
|
Total liabilities |
141.8 |
142.4 |
-0.4% |
143.1 |
The half-yearly report of the Biella Group (unaudited group account statements) as at 30.06.06 will be available for downloading from Monday, 28 August 2006 at the site www.biellagroup.com, or on request from the company.