Annual Report (PDF) - Feintool

Operating profit (EBIT)
The Feintool Group generated an operating
profit of CHF 28.5 million (CHF
26.7 million) in the reporting period.
This equates to a 6.7% rise in EBIT
compared with the prior year. The EBIT
margin was 5.7%, representing another
increase in relation to the year before.
The improvement versus the prior year
is attributable to higher sales and a further
reduction in the level of operating
expenses. This served to offset the
slightly poorer margin and higher depreciation
owing to investment in additional
capacity for fineblanking presses and
systems in the previous year.
Employee compensation increased
year-on-year due to the additional
capacity required, together with a
strengthening of the sales network.
Operating expenses fell slightly versus
the prior year, in spite of the commissioning
of new plants in Tennessee and
Tokoname in 2004/05 and in Thailand in
2005/06. Rental and leasing costs were
unchanged from the prior year's level.
There was a further reduction in the
administrative component of administration
and sales expenses.
14
Financial result
Consolidated financial income declined
by CHF 0.7 million in relation to the
prior year. This deterioration in financial
income, which came about in spite of a
further reduction in interest expenses
(due to lower financial debt), is attributable
to the realization of currency losses.
The accrued interest on the 2% convertible
bond 2004–2009 resulted in a noncash
financial expense of CHF 1.9 million
(CHF 1.8 million).
Taxes
The tax rate fell to 19.8% from the previous
year's level of 21.4%. This reduction
is a result of the significant improvement
in the earnings position at a number
of Group companies, which benefited
from tax loss carry-forwards stemming
from prior years. The reduction
was also helped by the restructuring
measures introduced in the prior year,
however.
Net income
Following a surplus of CHF 14.6 million
in the previous year, net income rose
once again to CHF 15.6 million for the
year ended 30 September 2006. The
increase reflected the positive influence
of higher EBIT and an unchanged tax
level, but was moderated by the poorer
financial result.
Feintool Group
Consolidated Balance Sheet
Total assets amounted to CHF 426.7
million as at 30 September 2006, a
modest rise on the previous year (CHF
417.9 million). Cash and cash equivalents
increased significantly from CHF
14.9 million to CHF 24.5 million.
Net working capital remained at the previous
year's level despite the growth in
sales. Nor did the rise in sales push up
the figure for trade accounts receivable:
rigorous receivables management ensured
that this item actually decreased
slightly. Inventories also fell slightly
despite rising prices of raw materials,
while work in progress edged upwards
due to the large number of orders in
hand and a higher order volume.