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Financial Releases
 
Results first half-year 2009 and outlook for the second half of 2009

 
First half-year 2009: Order entries remained at the depressed level already experienced since September 2008
  Despite the measures to reduce costs and adapt production capacities, the Group shows a loss
  Group remains financially strong and well positioned to capture future opportunities
   
Second half-year 2009: Restructuring/transformation program aimed to use Group synergies, implement new modus operandi and reinforce market leadership
  Non recurring costs expected to influence the 2009 results for approximately CHF 60 million
  No quick recovery or improvement of the market conditions expected
  Loss for the full year 2009 confirmed
  Changes in the Group Executive Committee


The consolidated sales amounted to CHF 465.6 million, representing a strong decrease of CHF -296.2 million or -38.9% compared with the same period in 2008. This evolution was due to the following elements:
 
  Millions of CHF %
 Evolution of volume and price -305.5 -40.1
 Change in the scope of consolidation 24.7 3.2
 Evolution of exchange rates -15.4 -2.0
 Total -296.2 -38.9


Compared to the 2008 half-year figures, the sales by business area reached 63.7% for Folding Carton, 49.9% for Corrugated Board and 60.5% for Flexible Materials (before change in the scope of consolidation).
 
  30 June 2009 30 June 2008 Evolution
Millions of CHF Millions of CHF in %
Folding Carton 200.8 315.3 -36.3
Corrugated Board 140.9 282.3 -50.1
Flexible Materials 121.5 160.1 -24.1
Others 2.4 4.1 -41.5
Total 465.6 761.8  

 
Operating loss
The operating loss amounted to CHF 79.3 million compared with an operating profit of CHF 35.3 million for the same period in 2008.

The Group result was negatively influenced by the drastic drop in sales volume on the one hand, and by restructuring and other one-time costs amounting to CHF 13.5 million on the other hand. During this first half-year, the operating results of all three business areas dropped significantly compared with the same period in 2008 and reached:
 
  • Folding Carton: CHF -22.6 million
  • Corrugated Board: CHF -31.2 million
  • Flexible Materials: CHF -26.0 million
     
Net loss
The net loss, influenced by tax income in the amount of CHF +14.9 million, amounted to CHF 70.2 million.

 
Outlook for the second half of 2009
Set in an environment with challenging macroeconomic conditions never experienced by the Group in the past, a transformation program of unparalleled magnitude and speed was initiated with the objective to take full advantage of the Group’s unique market position and business portfolio.

On a wider scale, and in addition to the efficiency target (cost reduction), the initiated transformation also aims at increasing the effectiveness of the Group’s modus operandi, improving market coverage, time to market and customer responsiveness, and ensuring maximum growth in already identified future growth areas.

Based on specific scenarios going forward, the Group defined a cost reduction program across all the business areas and regions. The goal is to reach until 2011 annual cost savings of around CHF 100 million. The implementation of these measures will necessitate non recurring costs of around CHF 70 million. Of these non recurring costs, approximately CHF 60 million are expected to influence the 2009 results, and the remaining CHF 10 million are to be booked in early 2010. They are foreseen to be cash effective mostly in the second half of 2009 and in 2010.

For the next months, no quick recovery or improvement of the market conditions are expected. Thus, a precise forecast remains difficult to establish. The second half-year of 2009 started with a backlog at the same level as at the beginning of 2009. As of today, at constant exchange rates, the turnover is estimated to be at the level shown in March 2009 (scenario “low” of around CHF 1.1 billlion). With this insufficient volume, an overall under-utilization of the Group’s production capacities for the remainder of the year is unavoidable.

As already announced, the Group will present an important loss for the full year 2009.

 
Group Restructuring/Transformation
The Group has decided to accelerate its changes and transformations. The main focus will be on operational excellence, growth and effective organization (modus operandi). This will improve the reactivity to market changes and the accountability of the Group’s organization. While continuing to serve its customers by industry (folding carton, corrugated board and flexible materials), the Group is reorganized by technical process, thus pursuing a better utilization of synergies. For this purpose, a Business Unit Sheet-fed, a Business Unit Web-fed and a Business Unit Services are created.

The new organization will be effective as of 1 January 2010.
 


 
Management Changes
In order to adapt the Group to this difficult environment and to facilitate the transformation of Bobst Group, the Board of Directors decided the following changes in the Group Executive Committee:

Mr. Claude Currat, presently Head of Business Area Flexible Materials, will become Head of Business Unit Services.

Two new members will join the Group Executive Committee:

Mr. Erik Bothorel is appointed Head of Business Unit Web-fed. He is with the Group since 2004 and manages the Product Line Gravure (Rotomec) in San Giorgio, Italy.

Mr. Pierre-Yves Müller is appointed Head Group Supply, Production and Logistics. He is with the Group since 1999 and assumes the responsibilities of Supply, Production and Logistics in Lausanne, Switzerland.

Mr. Daniel Jourdan, presently Head of Business Area Corrugated Board, will transmit his current tasks to dedicate all his time to the Group’s manufacturing activities in France, Head of Martin and Rapidex.

Mr. Michel Fiaux, presently Head Group Business Development, has decided to pursue his career outside the Group.

The Group Executive Committee will therefore be composed as follows:
 
  • Mr. Jean-Pascal Bobst, Chief Executive Officer
  • Mr. Christian Budry, Chief Financial Officer
  • Mr. Claude Currat, Head Business Unit Services
  • Mr. Hakan Pfeiffer, Head Business Unit Sheet-fed
  • Mr. Erik Bothorel, Head Business Unit Web-fed
  • Mr. Pierre-Yves Müller, Head Group Supply, Production and Logistics
Today’s Information Meeting
A conference for financial analysts and the media will take place today at 10.15 a.m. in Prilly. The half-year report as of 30 June 2009 is available on the www.bobstgroup.com/investors from 07.30 a.m., and the presentation from 10:15 a.m.
 
Bobst Group SA, Lausanne/Prilly, 2 September 2009
 
 
Inquiries
Media and Investor Relations: Phone +41 21 621 2560 or mail to investors@bobstgroup.com

 
  Half-Year Report 2009
  Presentation for financial analysts and the media
  Forthcoming Releases in 2009



 

 
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