News Archive

In 2009, the global recession had a major impact on the Interroll Group. As demand declined and projects were postponed or cancelled altogether worldwide, consolidated sales fell from CHF 357.9 million to CHF 234.0 million, a drop of 34.6 % on the previous, highly successful year; in local currency, revenue declined by 31.4 %. In terms of reporting currency, the consolidated Group turnover contained foreign currency losses of 3.2 %, with a further 5 % fall linked to the collapse in the price of raw materials such as steel and plastics. However, despite the extremely tough market environment and rising pressure on prices, the gross margin (sales revenue less cost of materials, expressed as a percentage of sales) virtually matched the level of the previous year (57.8 % compared to 58.8 % in 2008). On the procurement side, Interroll succeeded in renegotiating conditions with its most important regular suppliers with a view to alleviating the cost situation.

We captured market share and new clients in most markets. In the USA, for example, margins developed very positively, with business in check-out counter motors reported to be highly satisfactory. Additional trade was generated with a number of existing clients thanks to new products, which will have a positive effect on business in the medium term.

EBITDA and EBIT
Interroll's flexible cost structure, together with a cost-cutting scheme introduced at the beginning of 2009, enabled the company to stabilise its EBITDA margin at 8.0 % in the year under review, despite the sharp fall in sales. Earnings before interest, taxes, depreciation and amortisation (EBITDA) stood at CHF 18.8 million, compared to CHF 58.2 million in the very satisfactory previous year. Earnings before interest and taxes (EBIT) amounted to CHF 3.1 million (1.3 %), compared to CHF 43.4 million (12.1 %) in the previous year.

Net profit and cash flow
At the end of 2009, net profit stood at CHF 5.7 million, compared to CHF 33.8 million for 2008. Operating cash flow amounted to CHF 20.4 million, or 8.7 % of net sales (2008: CHF 41.9 million, or 11.7 % of net sales).

The Components segment
In terms of local currency, sales for the Components segment fell by 25.6 % during financial year 2009. In Group currency, sales amounted to CHF 157.9 million, compared to CHF 223.7 million in 2008. The decline in sales for the segment - a consequence of the global economic crisis - was shared more or less equally by established markets in the main. By contrast, sales were up in new markets such as India, Japan and Brazil. Despite the recessionary climate, the segment achieved satisfactory operating EBITDA of CHF 19.6 million, with a margin of 12.3 %. Overheads were reined back at an early stage within the Components segment, with the express purpose of relieving pressure on EBITDA. This did not affect investment in strategic projects aimed at long-term growth, such as the expansion of the Centre of Excellence for Conveyor Rollers and RollerDrives at Wermelskirchen and the development of innovative products. At the end of 2009, earnings before interest and taxes (EBIT) stood at CHF 7.4 million (4.6 %), compared to CHF 28.8 million (12.8 %) in the previous year.

The Subsystems segment
In 2009, sales for the largely project-dependent Subsystems division fell by 40.3 % in local currency compared to the prior year. In terms of reporting currency, turnover stood at CHF 76.1 million (against CHF 134.2 million in 2008). The figures reflect the unexpectedly high number of projects shelved until further notice or abandoned owing to lack of secured financing. There were no earnings before interest, taxes, depreciation and amortisation (EBITDA), following on from earnings of CHF 17.7 million in 2008; the loss in terms of EBIT amounted to CHF 4.3 million; in 2008, a positive EBIT of CHF 14.6 million was achieved. Thanks to its stable financial basis, however, Interroll was able to pursue strategic projects in this area (such as investing in product innovation).

Financial position and capital expenditure
Interroll has a sound financial foundation. At the end of the reporting year, the balance sheet total stood at CHF 215.7 million (2008: CHF 236.8 million). Shareholders' equity was CHF 133.0 million at the end of 2009 (2008: CHF 130.7 million). In yearly comparison, the equity ratio rose from 55.2 % to 61.7 %. Investment for the future amounted to CHF 22.9 million in the year under review (CHF 22.4 million in 2008). Most investment was channelled into the scheduled realisation of strategic projects and areas such as the geographic expansion of the Interroll network, product innovation and introduction of the new ERP system. In this way, Interroll reaffirmed its commitment to a strategy of long-term growth. By the end of 2009, net debt stood at CHF 4.2 million.

Par value reimbursement
In view of the financial stability of the company and encouraging prospects for the medium term, the Board of Directors will propose a par value reduction from CHF 15.00 to CHF 10.00 per Interroll registered share to the Annual General Meeting to be held on 7th May 2010. The reduction, offered in place of a dividend, will match the previous year's amount of CHF 5.00 per registered share and will be tax-exempt for shareholders in most cases.

Outlook
Interroll expects the economic climate to remain highly challenging throughout the current financial year, with a slight upturn possibly asserting itself in the second half of 2010 at the earliest. However, thanks to the company's stable financial foundation, we are confident that we will be able to remain on course as we pursue and conclude strategic projects linked to innovation, reinforcing the global network and implementing the new ERP system. In this way, Interroll will adhere to its long-term growth strategy, putting in place the preconditions that will enable the company quickly to gain full advantage of fresh opportunities that arise from an economic recovery. Interroll will also sustain the discipline of recent years as regards costs and seek out new possibilities for raising productivity in all fields of activity.

Profile of the Interroll Group
Interroll is one of the world's leading suppliers of core products for materials handling, logistics and automation. The Interroll Group employs 1,200 people in 28 companies worldwide and is listed on the SIX Swiss Exchange. Under the umbrella of its strategic holding company located in Sant'Antonino, Switzerland, three business units are responsible for all global operations ranging from consultancy to product management, R&D, production, distribution and service. The business unit Interroll Drives & Rollers offers easy-to-install, space-saving key functional units including Drum Motors and powered and non-powered Rollers for transport solutions. The Interroll Dynamic Storage business unit supplies modules for energy-free flow storage of pallets, totes and boxes. The third business unit, Interroll Automation, provides Crossbelt Sorters, Belt Curves and other easy-to-operate modules with a quick ROI for economical unit handling. Interroll's product and service offering is targeted principally at regional system engineering companies and original equipment manufacturers, system integrators, multinational companies and end-users. Interroll serves more than 23,000 customers across all continents.
 
For any questions, please feel free to contact Interroll on 26th March, 2010
between 1:30 p.m. and 2:30 p.m.:
 
Paul Zumbühl, CEO
Tel. +41 91 850 25 24
 
Lorenz Koehler, Head of Corporate Communications
Tel. +41 91 850 25 21
 
www.interroll.com/ir (Investor Relations)
investor.relations@interroll.com
 
Agenda 2010

• Annual General Meeting of Interroll Holding Ltd.:
  Friday, 7th May, 2010, Interroll Holding Ltd., CH-6592 Sant'Antonino/Switzerland
• Half-yearly results: 11th August, 2010

 
Download Financial Report
Key figures 2009