Belimo demonstrates strong growth in sales and profits
The Belimo Group, a world leader in electrical actuators for heating, ventilation and air conditioning systems, can look back on a highly successful year in 2006. Growth was significantly higher than the levels recorded in the markets serviced. Growth targets were achieved in both air and water applications.
Net sales in local currencies increased by 13.7 percent overall. Sales in Swiss francs rose by 16.0 percent to CHF 325.1 million, and Group net income climbed by 19.0 percent to CHF 39.0 million. Operating income (EBIT) was CHF 48.8 million, and operating margin stood at 15.0 percent. The return on equity amounted to 26.2 percent.
The Board of Directors will propose a dividend of CHF 30.-- per share to the General Meeting of Shareholders on May 7, 2007. At the same time, the Board of Directors will propose to the General Meeting a nominal share capital repayment of CHF 9.-- per share.
The Board of Directors has decided to implement a share buyback program on a separate trading line at SWX Swiss Exchange for a maximum of CHF 50 million, to run from April 4, 2007 until no later than the 2008 General Meeting. The shares bought back will be used for a reduction in share capital, which is expected to be proposed to the General Meeting in 2008.
In February 2007 Dr. Andreas Steiner retired as Chief Executive Officer of the Belimo Group. Mr. Steiner has led the Company for eight successful years and positioned it on the global markets.
Dr. Andreas Steiner and Walter Burkhalter will be retiring from the Board of Directors of BELIMO Holding AG at the forthcoming General Meeting. The Board would like to thank them both for their dedication to Belimo and the achievements they have accomplished in this time.
Global strengthening of market position
Strong growth in Europe, the positive trend in the Americas and the unwavering high demand in the Asia/Pacific region have once again enabled the Belimo Group to enjoy a gratifying increase in sales.
Europe. The European market developed very positively on the whole, with the performance of the Eastern European markets very pleasing. The turnaround which started in 2005 in Germany, the largest market territory in Europe, has exceeded our expectations. Only in the Nordic countries was growth low. Total growth in local currencies of over 20 percent was well above our expectations.
Americas. The demand for actuators and valves follows economic growth with a slight delay. This was true once again in 2006. In the second half of the year demand rose sharply and had a positive impact on operating activities. Overall in the Americas the increase in sales amounted to 5.4 percent in local currencies.
Asia/Pacific. Demand in the Pacific region continued to be high. Growth also remained strong in the People's Republic of China. Overall, with sales growth of 15.3 percent in local currencies, results in this region were significantly up on the previous year but fell short of the high expectations.
Net sales by market
|
in CHF 1000s |
2006 |
% |
2005 |
% |
|
Europe |
175,402 |
54 |
144,641 |
52 |
|
Americas |
128,375 |
39 |
117,626 |
42 |
|
Asia/Pacific |
21,311 |
7 |
18,044 |
6 |
|
Total |
325,089 |
100 |
280,311 |
100 |
Net sales by application sector
|
in CHF 1000s |
2006 |
% |
2005 |
% |
|
Air applications |
220,057 |
68 |
195,238 |
70 |
|
Water applications |
105,032 |
32 |
85,073 |
30 |
|
Total |
325,089 |
100 |
280,311 |
100 |
Expressed in local currencies, sales of air applications grew by 10.6 percent and sales of water applications were up 20.7 percent.
Innovation in the product range
The global launch of the 'new generation' was successfully completed. New products in energy optimization cemented the Group's market position. An innovative design in the lower torque range is enabling the Company to open up new application areas.
In 2006 Belimo invested CHF 18.9 million or 5.8 percent of net sales in research, development and improvement of global processes (previous year 6.2 percent).
Outlook 2007
In 2007 Belimo aims to grow three times as fast as the markets it serves. Investments in research and development will remain high. New functionalities and expanded applications for modularized actuators will help achieve additional growth.
Key figures of the Belimo Group for the financial year 2006
|
in CHF 1000s |
2006 |
2005 |
Change in % |
|
Net sales |
325,089 |
280,311 |
16.0 |
|
Operating income (EBIT)
- as a percentage of net sales |
48,752 15.0% |
39,878 14.2% |
22.3 |
|
Net income
- as a percentage of net sales
|
39,026 12.0% |
32,785 11.7% |
19.0 |
|
Earnings per share in CHF
|
60.87 |
50.91 |
19.6 |
|
Dividend per share in CHF
Nominal share capital repayment in CHF
|
*30 *9 |
30 0 |
0 - |
|
Investments in property, plant and equipment |
7,384 |
9,255 |
-20.2 |
|
Research and development expenditure
- as a percentage of net sales
|
18,875 5.8% |
17,250 6.2% |
9.4 |
|
Employees (FTEs, average)
|
891 |
804 |
10.8 |
* Proposal to the General Meeting of Shareholders on May 7, 2007
The Belimo Group is one of the world's leading global manufacturer of innovative electrical actuator solutions in heating, ventilation and air conditioning systems. In 2006, the Group achieved sales of CHF 325 million and employed approximately 1000 people. Information regarding the Company and its products is available on the Internet at www.belimo.com.
The shares of BELIMO Holding AG have been traded on the Swiss Stock Exchange since 1995 (SWX: BEAN).
There will be a media information session on the 2006 financial statements and a presentation for analysts in the Hotel Widder in Zurich today, starting at 10:30 am.
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Contact |
Beat Trutmann, CFO |
Telephone +41 (0)43 843 62 65 |
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Agenda |
General Meeting |
May 7, 2007 |
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Half-year letter to shareholders |
August 2007 |
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Publication of initial results for 2007 |
February 2008 |
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Year-end media information session |
March 17, 2008 |
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General Meeting |
April 21, 2008 |
The Annual Report 2006 can be downloaded from the following link:
The press release can be downloaded from the following link:
