Georg Fischer AG Business Report FY ended Dec. 2015
Recent Years
Financial Overview |
(in million CHF) |
| FY ended Dec. 31, 2015 | FY ended Dec. 31, 2014 | Rate of change (%) | Factors | |
| Overall | ||||
| -Net Sales | 3,640 | 3,795 | (4.1) | 1) |
| -EBITDA | 422 | 399 | 5.8 | - |
| GF Automotive | ||||
| -Sales | 1,321 | 1,415 | (6.6) | 2) |
Factors
1) Net Sales
-In the fiscal year ended December 31, 2015, the Company’s net sales decreased by 4.1% from the previous year to CHF 3,640 million. The decrease in sales was caused primarily by the negative impact of foreign currency fluctuations and by acquisitions and divestitures. Excluding currency effects and adjusting for acquisitions and divestitures, the Company’s sales increased by approximately 1%.
2) GF Automotive Sales
-The Company’s GF Automotive division had sales of CHF 1,321 million in the fiscal year ended December 31, 2015, a decrease of 6.6% from the previous year. Excluding negative currency effects, acquisitions, and divestitures, sales had increased by 2%.
Joint Ventures
-Linamar Corporation and the Company’s GF Automotive division, have agreed to cooperate in North America, Europe, and Asia to provide integrated casting and machining solutions to automotive, industrial, and commercial customers. The two companies plan to build a new jointly owned light metal foundry in the southeastern United States. The 50-50 joint venture named GF Linamar LLC will provide light metal high-pressure die castings for powertrain, driveline and structural components to the NAFTA market. The foundry is scheduled to begin production in mid-2017. The overall investment over the next five years will amount to approximately USD 100 million. (From a press release on July 16, 2015)
Contracts
-The Company’s GF Automotive division received orders totaling more than EUR 50 million for the production of components to equip several electric vehicles at global car manufacturers. The orders include both light metal battery housings and structural parts. The components are produced in the Austrian foundries of Altenmarkt and Herzogenburg. (From a press release on March 31, 2015)
Outlook
-The Company is aiming to achieve a sales turnover between CHF 4.5 and CHF 5.0 billion by 2020, which implies an average growth rate between 3% and 5% annually. The Company looks to achieve these goals by optimizing productivity in Europe, and by continuing expansion in Asia and the Americas to achieve better balance in geographical sales.
R&D Expenditure |
(in million CHF) |
| FY ended Dec. 31, 2015 | FY ended Dec. 31, 2014 | FY ended Dec. 31, 2013 | |
| GF Automotive | 18 | 19 | 18 |
| Overall | 102 | 106 | 95 |
R&D Facilities
-The Company’s GF Automotive division has research and development facilities located in Schaffhausen, Switzerland and Suzhou, China.
Capital Expenditure |
(in million CHF) |
| FY ended Dec. 31, 2015 | FY ended Dec. 31, 2014 | FY ended Dec. 31, 2013 | |
| GF Automotive | 80 | 79 | 58 |
| Overall | 138 | 140 | 128 |
Investments Outside Switzerland
-The Company’s GF Automotive division is increasing its manufacturing footprint in China by 50%. During the end of 2014, the division completed the extension of its iron foundry in Kunshan, Jiangsu Province, increasing capacity by 50%. The division is also building its fourth light metal facility in Suzhou, Jiangsu Province to increase capacity by 50% in this plant by the end of 2015. The investments of GF Automotive, amounting to more than CHF 40 million, are aimed at addressing the growing demand for locally produced lightweight structure and powertrain components. With the new investments, more than 20% GF Automotive’s sales will come from China. (From a press release on January 30, 2015)