Select your region and language
Business of the Elma Group in 4th quarter 2015
CH-Wetzikon, December 23, 2015 – Due to a weaker market environment in particular in Europe by end of 2015, the Elma Group anticipates a lower operating result than expected for the business year 2015. The regions Americas and Asia continue their performances according to expectations.
The business of the Elma Group has slowed more than expected in particular in Europe by the end of the fourth quarter 2015. Mainly the group company in Switzerland is affected by weak placements of orders. Although the revenue 2015 in the Europe region will most likely confirm the performance of the previous year, the operating result of the Elma Group will be negatively influenced by the weakness of investment in Switzerland in the fourth quarter. The positive development of other group companies however will not suffice to absorb this decrease.
Structural changes and cost-optimization measures have been initiated in particular in Switzerland to optimally align the organization to the new market conditions and improve profitability.
The recently acquired company Trenew Electronic AG will be included in the Group consolidation as of November 2015 for the first time. Elma expects that the acquisition will not have any material impact on the Elma Group’s sales and operating result in the current business year yet.
Elma anticipates that for the business year 2015 the operating result will be positive however significantly lower than in the previous year (previous year: CHF 4.1 million). The new Swiss financial reporting law regarding valuation of investments will be applied in the 2015 business year for the first time. The regulation might have a significantly positive impact on the net income of the Elma Group (previous year: CHF 2.3 million).
Contacts:
Elma Electronic AG
Hofstrasse 93
8620 Wetzikon
Fred Ruegg Edwin Wild
CEO Elma Group CFO Elma Group
Tel. +41 44 933 43 04 Tel. +41 44 933 42 45
[email protected] [email protected]
Elma Electronic is a global manufacturer of electronic packaging products for the embedded systems market – from components, backplanes, power supply solutions, storage boards and chassis platforms to fully integrated systems. To ensure our integrated solutions are optimized to our customers’ needs, Elma partners with leading board manufacturers in the industry. Elma also provides enclosure solutions and rotary switches for demanding applications for electronic companies. The company has a broad base of proven standard products which can be tailored to individual applications: Elma offers services from the initial concept to volume production. Elma’s reliable solutions, flexibility, and design expertise are key reasons why the leading companies in the world choose Elma time and again.
This communication contains statements that constitute “forward-looking statements”. In this communication, such forward-looking statements include, without limitation, statements relating to our financial condition, results of operations and business and certain of our strategic plans and objectives. Because these forward-looking statements are subject to risks and uncertainties, actual future results may differ materially from those expressed in or implied by the statements. Many of these risks and uncertainties relate to factors which are beyond Elma’s ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behavior of other market participants, the actions of governmental regulators and other risk factors detailed in Elma’s past and future filings and reports and in past and future filings, press releases, reports and other information posted on Elma Group companies’ websites. Readers are cautioned not to put undue reliance on forward-looking statements, which speak only of the date of this communication. Elma disclaims any intention or obligation to update and revise any forward-looking statements, whether as a result of new information, future events or otherwise.