In spite of increased order intake, Swisslog brought in 3.0% lower net sales, totaling MCHF 632.6, in the 2013 fiscal year. EBIT decreased by 17.7% to MCHF 20.5. At 3.2%, the EBIT margin is in the range expected. Even though a net profit of MCHF 11.9 was generated in a challenging economic environment, Swisslog is not satisfied with the fiscal year. A proposal will be submitted to the General Meeting of Shareholders to refrain from distributing a dividend to make room for an accelerated strengthening of the product portfolio.
The fiscal year went similarly for both divisions, Healthcare Solutions (HCS) and Warehouse & Distribution Solutions (WDS). After a good start, order intake slowed down in the second quarter. For HCS, the headwinds mainly came from North America, where uncertainties surrounding the rollout of the Patient Protection and Affordable Care Act (Obamacare) healthcare reform and the general budget situation (fiscal cliff) led to a decline in investments in the hospital market. For WDS, delays in order intake as well as additional expenses in relation to project realization led to lower net sales. Although we were able to make up a majority of the declines in the second half of the year, we could not meet the targets we had set.
Growth in order intake – decline in net sales and EBIT
The Swisslog Group’s order intake increased year-on-year by 10.9% (+11.2% in constant currencies) to MCHF 701.3. The order backlog of MCHF 542.2 forms a solid basis for starting the new fiscal year. However, net sales fell by 3.0% (-2.9% in constant currencies) to MCHF 632.6. The lower net sales were accompanied by a reduction in operating profit before interest and taxes (EBIT) to MCHF 20.5 (-17.7%, or -15.7% in constant currencies). At 3.2% (past year 3.8%), the EBIT margin is in the range expected. Net profit came in at MCHF 11.9. This cannot be compared with the amount from the past year, which was impacted by one-time restructuring costs. Score!, the restructuring program launched last year, is proceeding according to plan and has supported operating results in several areas.
Swisslog
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