annual report 2011 - Walter Meier

28 / review of tHe year
Walter Meier / annual report 2011
SoliD SaleS anD
a FurtHer inCreaSe
in proFitaBilitY
n sales only slightly down on the previous year at
CHf 641.7 million despite negative currency effects
n adjusted for currency and consolidation effects,
sales grew by 5.7 percent
n ebit margin increased from 7.9 to 8.8 percent, primarily
due to a marked recovery in machining solutions
n net income amounted to CHf 51.9 million,
up 26.0 percent year-on-year
n proposed profit payment of CHf 12.50 per
-a- registered share, unchanged on the previous year
the climate and manufacturing technology group
Walter Meier generated sales of CHF 641.7 million in 2011
(previous year: CHF 645.4 million), a slight drop of 0.6 percent
compared to the previous year. adjusted for the effects of
currency translation and consolidation, this equates to organic
growth of 5.7 percent. in view of the strong Swiss franc,
healthy growth in parts of the Group Divisions Humidification
and tools, which have a predominantly international focus,
actually translated into a decline in sales. the Group Division
Machining Solutions achieved the largest increase in sales
by some margin, at over 22 percent, chiefly due to a similarly
large and unexpectedly rapid recovery in the Swiss metalworking
industry.
eBit increased by 10.6 percent year-on-year to CHF 56.5
million, corresponding to a further improvement in the eBit
margin from 7.9 percent to 8.8 percent. all Group Divisions
contributed to this pleasing growth in the operating result,
with the Group Division Machining Solutions enjoying
the most marked improvement.
net income amounted to CHF 51.9 million, up from CHF 41.2
million in the previous year. this increase is mainly due to
growth in the operating result. in addition, the net financial
result improved significantly over the past financial year, and
the share in profit of associated companies also increased.
With the continuing positive growth in earnings enjoyed by
the Group Division tools, more use can now be made of its
accrued loss carryforwards, allowing the tax rate to be reduced
to an extremely low 10.0 percent. Following the destruction
of 108 800 -a- registered shares from the now-completed
share buyback program, profit per share increased sharply
year-on-year from CHF 19.09 to CHF 25.02.
on the balance sheet date, total assets had increased from
CHF 320.6 million to CHF 355.8 million, primarily due to the
increase in cash and cash equivalents as well as the acquisition
of new business units and strategic investments. at the
end of 2011, the equity ratio improved once again to 55.6
percent (previous year: 53.2 percent). the profit payments and
the repurchase of treasury shares on the second trading line,
which was completed ahead of schedule on april 28, 2011,
had a significant impact on the equity level.
net liquidity increased considerably yet again in spite of the
dividend payment, the capital reduction and the financing
required for acquisitions, amounting to CHF 60.7 million on
December 31, 2011 (previous year: CHF 45.6 million). these
funds now form a sound basis for accelerated growth in
strategic business areas. at the end of the year, immaterial
financial liabilities were at a similarly low level as in 2010.
Working capital was maintained roughly at the previous year’s
level, mirroring the sales trend in the 2011 financial year.
at CHF 43.6 million, free cash flow was up slightly on the
previous year (CHF 41.0 million). the marked increase in the
outflows of funds for investments in the Group Divisions
Humidification and Climate was more than offset by greater
cash inflows from operating activities. Funds tied up in
operating assets were subject only to minor changes.
the number of employees increased by 78 in comparison with
the end of 2010 to reach 1 627 (full-time equivalents), mainly
due to acquisitions.