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Schlatter Industries AG / Key word(s): Half Year Results SCHLATTER INDUSTRIES AG - SIX SWISS EXCHANGE: STRN - ISIN: CH0002277314 S c h l i e r e n, 15 August 2024. In the first half of 2024, the Schlatter Group recorded a slightly lower order intake of CHF 57.4 million compared to the same period of the previous year (1st half of 2023: CHF 62.4 million). At CHF 61.8 million, net sales in the first half of the year were down on the prior-year period (CHF 67.4 million). At CHF 69.4 million, the order backlog as at 30 June 2024 was slightly below the level at the end of 2023 (31 December 2023: CHF 73.9 million). Delayed commissioning of customer projects in the Welding segment led to additional costs and provisions had to be recognised for impending contractual penalties. The operating result (EBIT) for the first half of 2024 therefore totalled CHF 1.3 million (EBIT margin: 2 %) compared to CHF 3.7 million (EBIT margin: 5.4 %). Without these additional costs and provisions, the operating result would have been roughly on a par with the previous year. For the first half of the year, the Schlatter Group reported a positive consolidated result of CHF 1.6 million (1st half of 2023: CHF 3.3 million).
Demand for Schlatter products developed according to plan in the first half of 2024. While order intake for industrial mesh systems increased further, demand for rail welding and weaving machines normalised. Orders for systems for the production of reinforcing wire mesh remained at the previous year's level. The volume in the After Sales segment was maintained at a high level. The order backlog as at 30 June 2024 remained high in the Welding segment compared to the end of the year, while it declined in the Weaving segment. The Schlatter Group closed the first half of the year with a high order backlog, which will utilise capacity for the current financial year. The second half of 2024 has continued to start with orders on schedule.
Welding segment 1st half of 2024 Key figures Order intake: CHF 49.4 million (first half of 2023: CHF 50.9 million) Net sales: CHF 48.9 million (first half of 2023: CHF 51.5 million) Order backlog: CHF 57.3 Mio. (31 December 2023: CHF 56.7 million).
Order intake in the Welding segment exceeded expectations in the first half of the year and roughly corresponded to the segment's existing capacities. While order intake for systems for the production of reinforcing mesh only recovered slightly, order intake for systems for the production of industrial mesh were well above expectations. In the rail welding product area, order intake normalised following the exceptionally high demand in the previous year. The order backlog remains very high at CHF 57.3 million (31.12.2023: CHF 56.7 million). It took longer than expected to reduce delivery delays, particularly for systems for the production of reinforcing wire mesh. As a result, commissioning took considerably longer. This resulted in considerable additional costs and provisions had to be recognised for contractual penalties.
Welding segment outlook With the current order backlog, the existing capacities in the Welding segment are well utilised for the 2024 financial year and the order intake is proceeding according to plan. The backlog in the processing of customer projects could not be made up as planned in the first half of 2024; this is now to be done in the second half of the year. The aim is to build on the previous year's results in the second half of 2024 and achieve a significant increase in earnings compared to the first half of the year.
Weaving segment 1st half of 2024 Key figures Order intake: CHF 7.9 Mio. (first half of 2023: CHF 11.5 Mio.) Net sales: CHF 13.0 Mio. (first half of 2023: CHF 15.9 Mio.) Order backlog: CHF 12.2 Mio. (31 December 2023: CHF 17.2 Mio.).
Capacity utilisation in the Weaving segment is secured until the end of 2024, and initial orders for deliveries have also been acquired for the 2025 financial year. Order intake has normalised, but there is a good chance of generating sufficient follow-up projects for the 2025 financial year. Overall, the Münster site has become significantly more profitable, and the measures implemented at the Münster site have achieved the desired effects on earnings.
Outlook for the weaving segment The Weaving segment is starting the second half of 2024 with a high order backlog. Including the welding modules for reinforcing mesh systems and machines for the production of mobile fencing produced in Münster, the site is well utilised for the 2024 financial year. Profitability at the Münster site increased significantly in the first half of the year. The challenge is to maintain and sustainably increase this. To this end, a comprehensive package of measures has been developed and is currently being implemented. Following the above-average order intake in previous periods, the order volume has normalised. The aim now is to acquire sufficient follow-up orders for the coming financial year.
Outlook Schlatter Group Overall, the Schlatter Group was able to acquire orders as planned in the first half of the year, ensuring capacity utilisation for the 2024 financial year. The focus remains on realising customer projects on schedule. The situation on the procurement markets has normalised, meaning that an end to the backlog in the welding segment is in sight. After additional costs were incurred in the first half of the year due to the delays and provisions had to be recognised for impending contractual penalties, the focus is now on increasing profitability. Other priorities include implementing innovations and securing and expanding expertise in various areas of the Welding segment.
The Schlatter Group is aiming for an increase in the operating result (EBIT) in the second half of the year. Nevertheless, it will not be possible to make up for the shortfall in the first half of the year, meaning that the annual result will be significantly lower than in the previous year.
Event after the balance sheet date In the media release of 12 August 2024, it was announced that Schlatter's IT network had been attacked with malware. The ICT experts are working intensively with external experts to make all systems available and functional again as quickly as possible. The financial damage and the impact on the annual result cannot yet be quantified.
The full 2024 half-year report can be downloaded from the Schlatter Group website: http://www.schlattergroup.com/en/investor-relations/annual_and_semester_reports/
Further Information Schlatter Industries AG Werner Schmidli Chief Executive Officer Telephone +41 44 732 71 70 Mobile +41 79 343 62 62 werner.schmidli@schlattergroup.com
Agenda
Key figures of the Schlatter Group 
Schlatter Group (www.schlattergroup.com) ------------------------------ End of Inside Information |
| Language: | English |
| Company: | Schlatter Industries AG |
| Brandstrasse 24 | |
| 8952 Schlieren | |
| Switzerland | |
| Phone: | +41 44 732 71 11 |
| E-mail: | info@schlattergroup.com |
| Internet: | www.schlattergroup.com |
| ISIN: | CH0002277314 |
| Listed: | SIX Swiss Exchange |
| EQS News ID: | 1968413 |
| End of Announcement | EQS News Service |
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1968413 15-Aug-2024 CET/CEST
