Investor Relation News

Schaffner strengthens its position as global partner in the international market for power electronics systems with the acquisition of dry-type transformer operations of American manufacturer MTC Transformers

The Schaffner Group posted an increase in net sales of 17.7% (22.2% in local currencies) for the first half of fiscal 2009/10 compared with the unsatisfactory levels of the previous year, when business had suffered under the pressure of the challenging economic climate. At CHF 84.6 million (HY1 2008/09 CHF 71.9 million), sales are practically on a par with the same period in the very good business year of 2007/08. Operating result improved to CHF 5.6 million (CHF –7.1 million), while the EBIT margin expanded to 6.6% and net profit increased to CHF 3.8 million (CHF –8.8 million). This corresponds to earnings per share of CHF 5.94 (CHF –14.68). The positive first-half result is attributable to efficiency measures and cost savings implemented in the previous year as well as the increase in net sales. Total order intake recorded by the Schaffner Group amounted to CHF 98.3 million (CHF 69.3 mil­lion), up by a significant 41.8% compared with the low prior-year level. The book-to-bill ratio in the first half of fiscal 2009/10 was 1.16. As a result of the increase in net sales, net work­ing capital increased to CHF 34.8 million (September 30, 2009: CHF 30.7 million), resulting in free cash flow of CHF –2.7 million (CHF 7.1 million).

The Schaffner Group confirms that it has received a major order to ship a second tranche of transformers and reactors for the construction of high-speed trains for the Chinese National Railway. This order, with a value in the in the high single-digit millions, is to be completed by mid-2011.

Schaffner Holding AG completed the redemption of the maturing convertible bond (2.25% convertible bonds 2004-2010) on January 28, 2010 in accordance with the conditions of the issue prospectus. The convertible bond was issued on January 28, 2004 with a nominal value of CHF 49.4 million and final redemption after six years (2004-2010). The conversion price (strike) was adjusted several times over the duration of the bond in accordance with the conditions of the convertible bond (Art. III Section 5 [d], [i] of the issue prospectus), and on January 28, 2010 amounted to CHF 230.96. The conversion price was adjusted from CHF 260 to CHF 238.32 on January 29, 2007, to CHF 232.16 on April 5, 2007, and to CHF 230.96 on April 3, 2009.

Schaffner Holding AG's 14th Annual General Meeting on January 13, 2010 approved all of the proposals put forward by the Board of Directors. In particular, Hans Hess and Robert F. Spoerry were re-elected for a further three-year term as members of the Board of Directors. Leo Steiner and Peter E. Rued, whose term of office expired at the 2010 Annual General Meeting, did not stand for re-election. Daniel Hirschi was elected as a new member of the Board of Directors for a three-year term, and was elected as the new Chairman at the Board’s constituting meeting. Daniel Hirschi, born 1956, Swiss, Degree in Engineering, was employed at Saia-Burgess in Murten from 1983 to 2005, initially as head of the Switches division and subsequently as head of the Automotive division. He became CEO in 2001 and Delegate to the Board of Directors in 2003. From 2006 to 2009 he was CEO and Delegate to the Board of Directors of Benninger AG, Uzwil. Daniel Hirschi is a member of the Board of Directors of Benninger AG, Uzwil, and Komax Holding AG, Dierikon. The 14th Annual General Meeting of Schaffner Holding AG also approved the proposal to waive payment of a dividend for fiscal 2008/2009 as well as the amendment to the Articles of Association in accordance with the new act on book-entry securities (Bucheffektengesetz), which came into force on January 1, 2010.