September 09, 2011 | Ad hoc announcement pursuant to Art. 53 LR
Strong Swiss franc effects a revision of guidance for fiscal year 2011
Burckhardt Compression expects sales in fiscal year 2011 to amount to approximately CHF 330 million with an EBIT margin near the middle of its targeted long-term range of 10% to 20%. Guidance was revised due to the tremendous appreciation of the Swiss franc over the past several months. Order intake has shown pleasing growth during the current year.
The highly volatile fluctuations on the currency front in the current fiscal year will leave their mark on the company’s results for fiscal year 2011 (closing March 31, 2012). Burckhardt Compression expects sales in fiscal year 2011 to reach approximately CHF 330 million. The EBIT margin is expected to recede towards the middle of the long-term targeted range of 10% to 20%. Burckhardt Compression had previously expected slightly higher sales with profit margins around the same level as in the previous year. These expectations have been revised due to the tremendous appreciation of the Swiss franc over the past several months. Despite extensive efforts to mitigate the situation, it has not been possible to completely offset the effect of the massive appreciation in the value of the Swiss franc versus the euro and the US dollar.
As announced during the presentation of the annual results in June 2011, sales and operating results for the first half of fiscal year 2011 (closing September 30, 2011) will be significantly weaker than in the second half of the fiscal year due to the scheduled completion dates of new machine orders.
Burckhardt Compression continues to expect orders received in the current fiscal year to exceed the order intake from the previous fiscal year. Order intake in the new machine business and at Customer Support Service (CSS) will be higher than in the previous year while new orders in the compressor component business will be around the level reported in the previous fiscal year. The overall increase in order intake so far this year will lead to higher sales in the following year (fiscal year 2012) with similar margins as in fiscal year 2011.
Measures already taken to improve the operating results will be intensified. In the short term this will primarily be achieved by increasing sourcing activities in euro and US dollar and by further improving efficiency. In the medium-term horizon, new products and applications, greater alignment between the company’s markets and manufacturing locations and further expansion of its services and components business will reduce its exposure to exchange-rate fluctuations.
Burckhardt Compression will report its half-year results for fiscal year 2011 (closing September 30, 2011) on November 8, 2011.
About Burckhardt Compression
Burckhardt Compression is one of the worldwide market leaders in the field of reciprocating compressors and the only manufacturer that offers a complete range of Laby® (labyrinth piston), Process Gas, and Hyper Compressors. The compressors are used to compress, cool or liquefy gases. Burckhardt Compression’s customers include multinational companies active in the chemical, petrochemical, refinery, industrial gas and gas transport and storage industries. With the leading compressor technology, the high-quality compressor components and the comprehensive range of services Burckhardt Compression supports its customers in their effort to minimize the life cycle costs of their reciprocating compressor systems.
Further inquiries:
Marcel Pawlicek, CEO
Tel.: +41 (0)52 262 55 00
Fax: +41 (0)52 262 04 08
[email protected]
or
Rolf Brändli, CFO
Tel.: +41 (0)52 262 55 00
Fax: +41 (0)52 262 04 08
[email protected]
www.burckhardtcompression.com
