Media release 4/2013
Swisslog with increased sales and operating profit
Record-high order intake for the Healthcare Solutions division
Buchs/Aarau, March 7, 2013 - Swisslog's net sales in the 2012 fiscal year rose
to MCHF 652.0, which is equivalent to an increase of 13.4% year-on-year. The
provider of automated logistics solutions to hospitals and distribution
centers succeeded in increasing its EBIT by 33.3%, to MCHF 25.6. However,
restructuring expenses took their toll on net profit. Swisslog sees positive
growth in profitability for the current fiscal year.
Swisslog closed the 2012 fiscal year with a satisfactory overall result. There
was an increase in both net sales and EBIT. The Healthcare Solutions division
(HCS) in particular experienced a positive development, once again with
record-high order intake, and it acquired its biggest order ever in the
growing market of Asia. As expected, order intake for the Warehouse &
Distribution Solutions division (WDS) fell year-on-year. The decrease is
attributable to the fact that, in the previous year, the division succeeded in
receiving a major order with an extraordinarily large order value.
Expansion in Asia - new markets in Europe
Swisslog remains well positioned in its target markets (i.e., for the HCS
division, in the hospital sector, and, for the WDS division, in the retail,
food and beverage market as well as the pharma sector). Both divisions have
invested in innovations, which are now reaching market-readiness. For example,
HCS, together with an American company called JBT, has developed a new
generation of automated guided vehicles for hospitals, which will be brought
onto the market in 2013. In addition, HSC launched the UniPick picking
solution for hospital outpatient pharmacies on the Chinese market. Swisslog
sees great potential for growth in this segment. In North America, it expanded
its portfolio in the field of automated drug management systems with MedTower.
The WDS division introduced two innovative picking systems onto the market.
From a geographical point of view, emphasis is to be placed on Asia. Swisslog
has invested heavily in the expansion of the organization there. Furthermore,
Swisslog is now represented by both divisions on the Turkish and Polish
Lower order intake - higher net sales
The Group's order intake reduced year-on-year by 9.3% (â??11.6% in constant
currencies) to MCHF 632.4 and thus remained within the range expected. Three
large orders (projects with order volumes larger than MCHF 20) were won in the
2012 fiscal year-about just as much as in the previous year. However, the
order volume of these large orders was significantly lower than for the year
prior. The margin in order intake experienced positive growth, which will
improve profitability next year.
Based on the higher order backlog in relative terms at the end of 2011, net
sales got a substantial increase, climbing to MCHF 652.0 (+13.4%, or +10.8% in
constant currencies). These higher net sales led to a rise in operating profit
before interest and taxes (EBIT) and before restructuring expenses, which
brought it up to MCHF 25.6 (+33.3%, or +23.4% in constant currencies). The
progress of HCS and the reduced fixed costs in corporate headquarters in
particular have contributed significantly to the better operating profit. The
EBIT margin also increased from 3.3% to 3.9% as a result. Swisslog is thus on
track to achieve its target margin of 5% by 2014.
Positive effects of Score!
Swisslog put special emphasis on the Score! program in the 2012 fiscal year,
which aims to improve profitability. With this program, structures in the
whole company were optimized during the year under review in order to
sustainably increase profitability by MCHF 8-10 by 2014. This was carried out
on the one hand via cost optimizations, and on the other by realizing
potential for growth. Various sub-projects were almost completed by the end of
2012 and resulted in restructuring expenses that affected the financial result
in 2012 amounting to a total of MCHF 8.0. Net profit thus fell by 33.3%
(â??40.5% in constant currencies) to MCHF 7.8.
The financial situation of Swisslog remains solid. The General Meeting will
therefore propose that a dividend of CHF 0.02 per share be distributed.
HCS with significant improvement, WDS with more new business
The growth of the Healthcare Solutions division is encouraging on all levels.
In Europe, a return to profitable results was begun. In addition, the
division's order intake came in strong in all three regions (North America,
Europe, Asia), totaling a record-high MCHF 243.9 (+11.0%, or +6.8% in constant
currencies). The division's solid growth in the growing market of Asia in
particular is noteworthy, which is where HCS acquired its largest order ever.
The division's order backlog climbed to MCHF 163.3 (+6.2%, or +8.2% in
constant currencies). Positive growth was also seen in net sales, which came
in at MCHF 219.3 (+6.6%, or +2.3% in constant currencies), and EBIT before
restructuring expenses, which came in at MCHF 18.0 (+40.6%, or +32.0% in
constant currencies). The division succeeded in increasing its EBIT margin
from 6.2% to 8.2% and is thus approaching its target value of 10%.
The profit that came in for the Warehouse & Distribution Solutions division
was not entirely satisfactory. The division's order intake fell, as expected,
to MCHF 388.5 (â??18.6%, or â??20.1% in constant currencies). The division's
order backlog, which came in at MCHF 324.1 (â??11.4%, or â??11.7% in constant
currencies), is lower than it was the year prior, while the quality of the
order backlog in terms of margins is better than in the previous year. Net
sales increased by 17.2% (+15.5% in constant currencies) totaling MCHF 432.7.
This growth in net sales has not led to an improvement in EBIT, because the
lower-margin new business in particular was increased. EBIT before
restructuring expenses amounted to MCHF 15.6 (+2.0%, or â??3.3% in constant
currencies), and the EBIT margin fell from 4.1% to 3.6%. The targeted EBIT
margin remains at 5%.
New executive management and new head of WDS
The 2012 fiscal year was also characterized by two important staff changes.
Remo Brunschwiler, CEO of the Swisslog Group since 2003, left the Company
effective the end of December 2012 to take over the lead of the Selecta Group.
The Board of Directors subsequently decided to streamline the management
structure of the Group. Chairman of the Board of Directors Hans Ziegler has
taken over the lead of the Executive Committee as of January 1, 2013. In
addition to Hans Ziegler, Karl Pühringer, Head of the Healthcare Solutions
division, and Joe Doering, the new Head of the Warehouse & Distribution
Solutions division, as well as Christian Mäder as Chief Financial Officer are
now part of the Executive Committee. Christian Mäder also heads up the
Swisslog sees positive growth in profitability for 2013, especially as a
result of the improved margin in its order backlog and the positive effects of
Score! Given the background of large economic uncertainties, especially in
Europe, expectations are, however, more on the conservative side. Swisslog
sees a substantially more positive outlook for its business in Asia, where we
expect further growth for 2013. We also see growth in the U.S. market in a
positive light. Swisslog expects stable net sales for 2013, along with an
increased EBIT margin of between 4.0% and 4.5%.
11 April 2013: General Meeting of Shareholders
29 May 2013: Investor Day
20 August 2013: Publication of Half-Year Result
Swisslog Holding AG Swisslog Holding AG
Reto Sidler Christian Mäder
Head of Corporate Communications Chief Financial Officer
Tel.: +41 (0)62 837 95 36 Tel.: +41 (0)62 837 95 64
Fax: +41 (0)62 837 95 10 Fax: +41 (0)62 837 95 10
Email: email@example.com Email: christian.mäder@swisslog.com
Website: www.swisslog.com Website: www.swisslog.com
Swisslog is a global provider of integrated logistics solutions for
warehouses, distribution centers and hospitals. Its comprehensive services
portfolio ranges from building complex warehouses and distribution centers to
implementing Swisslog's own software and technology to intra-company logistics
solutions for hospitals.
Swisslog's solutions optimize customers' production, logistics and
distribution processes in order to increase flexibility, responsiveness and
quality of service while minimizing logistics costs. With years of experience
in the development and implementation of integrated logistics solutions,
Swisslog provides the expertise that customers in more than 50 countries
around the world rely on.
Headquartered in Buchs/Aarau, Switzerland, Swisslog currently employs over
2000 staff in 20 countries worldwide. The group's parent company, Swisslog
Holding AG, is listed on the SIX Swiss Exchange (security number: 1232462,
Telekurs: SLOG, Reuters: SLOG.S). Note: Swisslog refers to an order as "major
order" if its financial volume exceeds the threshold of MCHF 20.
For more information, please visit www.swisslog.com
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