Operating Profit and Balance Sheet
The operating profit result took benefit from the Tooling growth but at the same time was impacted by the Automotive Components results, the demand stagnation in wind materials paired with sales price decreases and delayed cost recovery from raw material price increases. Additionally, one-off costs related to the transfer of the UK prepreg business to Spain continued in the first half-year 2018 while benefits from lower fixed cost are to be captured from the second semester 2018 onwards. In summary, operating profit came in at the lower end of the Company's target range. Gurit reported an operating profit of CHF 16.0 million for the first six months of 2018 (1HY 2017: CHF 21.2 million). The operating profit margin amounted to 8.2% of net sales (1HY 2017: 12.1%).Net profit for the first half-year 2018 decreased to CHF 11.2 million (1HY 2017: CHF 15.3 million) equaling earnings per listed bearer share of CHF 24.13 (1HY 2017: CHF 32.78).
Gurit generated a positive net cash flow from operating activities of CHF 8.3 million in the first six months of 2018. Capital expenditures amounted to CHF 8.9 million in the first half-year 2018 and were mainly used for the construction of a larger production bay at the Company's Tooling premises in China, continued investments into the industrialization of car part production in Hungary as well as for the set-up of the balsa wood factory in Indonesia.
Outlook
Given a fair sales outlook for the Group's businesses and due to the many one-time market and internal effects on the 1HY 2018 operating profit, Management expects to achieve a high single-digit net sales growth in Swiss francs and an operating profit margin at the mid-level of the Company's target guidance range of 8-10% of net sales for the full-year 2018.Source: Gurit
