In the 1999/2000 financial year ended 30 September 2000, the Feintool Group (headquartered in Lyss, Switzerland) raised its consolidated sales by 42.7% to CHF 427.7 m (1998/99: CHF 299.8 m), while group profit went up by 35.3% to CHF 24.6 m (18.2 m). The operating result (EBIT) improved by 49.4% to CHF 32.7 m (up from CHF 21.9 m). The technology group, which supplies systems, assemblies and components, generated 60% of its sales in Europe (prior year: 51%), 32% in North America (39%), and 8% in Asia and the rest of the world (10%). At the end of the financial year, the Group employed 1625 people worldwide. The Board of Directors is proposing to the Annual General Meeting that the dividend be raised from CHF 8.50 to CHF 12 per registered share. Feintool International Holding is expecting sales (including those of Afag Group, acquired as of 1 January 2001) to grow to CHF 490-510 m. High priority is being given to integrating all the companies and utilizing synergy potential.
The Group's traditional core segment, Fineblanking/Forming, met its budget targets, contributing sales of CHF 283.7 m (CHF 247.7 m), i.e. 66.3% of the total; about 20% was organic growth while 80% was due to the acquisition of Heinrich Schmid AG of Jona on 1 October 1999. The European companies in the technology field, in the presses and systems business and in components manufacturing grew their sales in the past year, thus easily offsetting the below-budget performance of the US and Japanese operations. The cooperation agreement with the German press-building partner Schuler/SMG was extended, and a new generation of hydraulic presses made ready for the market. Components production was stepped up further through the inauguration of the plant in Tennessee. Heinrich Schmid AG – which continues to operate under its own corporate identity (Schmid being the Group's second brand name for presses), also met its targets in the new corporate environment.
The Feintool Group's new Assembly/Automation segment, which is still in the development phase, saw sales jump from CHF 28.6 m to CHF 81.1 m. Thanks to innovations in the riveting machinery programme, the BalTec Group (which now includes Limatec AG of Grenchen) lifted its sales by 38%. IMA Automation GmbH (including mhk Montagekomponenten Vertriebs-GmbH) of Amberg, Germany, was consolidated for the first time following its integration into the Group on 1 January 2000. This producer of high-performance assembly plants and automation modules has been operating very successfully in the fast-growing electronics and telecommunications industries. An expansion project in Amberg will create the necessary capacity for meeting the growth in demand and ensuring that tight deadlines continue to be met.
The Plastic/Metal Components segment, which includes Mühlemann AG of Biberist, posted sales of CHF 62.9 m (previous year: CHF 23.5 in five months), thus also meeting its sales target. With its core competencies of stamping and forming, mould and machine-tool production, injection moulding and assembly, and its efficient logistics systems, Mühlemann is one of the leading suppliers of high-precision plastic/metal components. To help cater for the global sourcing needs of major clients, production commenced at the Feintool plant in Tennessee. The extension to the Biberist plant, for which the first sod was cut this year, will also help meet the growth targets budgeted for this segment.
Technologies, core competencies and synergies for a dual-track success strategy
Feintool is both a systems supplier and a producer of assemblies and components. The various core competencies which the Group has acquired by mastering all the processes involved are helping it to meet its overriding objective – namely, to find the best solutions (in both technological and economic terms) for the bulk supply of components and assemblies to the world market.
In the area of systems engineering, Feintool designs, manufactures and distributes systems for fineblanking/stamping/forming, for assembling/riveting and for the automated assembly of metal and plastic parts and components.
In the field of manufacturing, Feintool has its own plants in Switzerland, Germany, the USA and Japan specializing in the large-scale manufacture of system parts made of various metals and/or metal & plastic combinations, from which it produces components and assemblies ready for installation.
Sales approaching CHF 500,000
Assuming that world economic conditions remain relatively stable, and given the continuing focus on expanding the Group's core competencies in its three segments, the outlook for the current financial year is encouraging. The acquisition of Afag Group, which is to take effect at the beginning of 2001, will strengthen the market position of the Assembly/Automation segment. With its broad customer base in a number of different growth industries, its new products, its healthy order book and the expansion of capacity in Amberg and Biberist, sales look set to rise by around 15% to CHF 490-510 m. High priority is being given to integrating all the companies and utilizing synergy potential.