Interim Results as of June 30, 2019
Elma grows and invests in its future
CH-Wetzikon, August 12, 2019 - The Elma Group continued its growth strategy in the first half of 2019, increasing order income and net sales year-on-year. The implementation of the previously announced Vision 2020 in the US was further advanced. The investments in a modern industrial sheet metal production will however substantially strengthen the Elma Group in the long-term; the related relocation and financing cost were mainly responsible for a temporarily lower profitability. In addition, significantly higher project cost on complex customer projects in the Europe region have resulted in Elma closing the first half of the year with a lower net profit compared with the previous year.
- Order income strongly increased by 14.0% to CHF 83.3 million
- Net sales grew by 1.1% to CHF 73.3 million
- EBIT of CHF 2.2 million (previous year: CHF 3.3 million) and net profit of CHF 1.7 million (previous year: CHF 2.4 million) below prior year mainly due to relocation and financing expenses
- Net debts increased from CHF 17.5 million as at December 31, 2018 to CHF 26.6 million due to high investments
- Equity ratio of 40.3% slightly lower than at year-end 2018 (43.8%)
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.