Datwyler experiences brisk demand, but growing pressure on margins

In the first half of 2011, the Datwyler Group achieved its targeted organic growth with a currency-adjusted 8.7% increase in net revenue. After consolidation in Swiss francs, net revenue still saw a 0.3% increase to CHF 679.0 million.Before restructuring costs and assuming no change in exchange rates, operating profitability was up slightly on the previous year’s level.After taking account of all factors, the EBIT margin narrowed to 9.2%.The net result declined to CHF 44.2 million.For the year as a whole, the reduction in visibility means it will hardly be possible for Datwyler to improve on its 2010 revenue and income figures.

In the first half of 2011, all four divisions of the Datwyler Group reported brisk demand from their respective key markets industry, pharmaceuticals, construction and automotive.Economic conditions were buoyant, particularly in central, northern and eastern Europe as well as in Asia.The upbeat mood was overshadowed by the debt crisis in the eurozone and the resulting currency turbulence, in which the strong Swiss franc played a central role.Although the Datwyler Group achieved its planned organic growth, with an 8.7% increase in net revenue after adjustment for currency factors, after consolidation in Swiss francs, all that remained was a 0.3% year-on-year increase to CHF 679.0 million (previous year CHF 677.0 million).Currency movements had a negative impact of CHF -57.3 million or -8.4%.

Click here for full article