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Q1 results for the financial year 2014/15: LEM reports continued sales growth and an EBIT margin of 20.8%

August 11, 2014

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PRESS RELEASE



Q1 results for the financial year 2014/15


LEM reports continued sales growth and an EBIT margin of 20.8%





Fribourg, 12 August 2014 - LEM (SIX: LEHN), the market leader in providing innovative and high quality solutions for measuring electrical parameters, announces sales of CHF 65.0 million, an EBIT of CHF 13.5 million and net profit of CHF 10.7 million for Q1 of 2014/15 (1 April to 30 June 2014).


Q1 of 2014/15 compared with Q4 of 2013/14:

Bookings amounted to CHF 64.7 million, an increase of 2.0% (CHF 63.5 million)Sales reached CHF 65.0 million, an increase of 6.4% (CHF 61.1 million)The book-to-bill ratio stabilized at 1.00 (1.04)EBIT was little changed at CHF 13.5 million (-0.4%); the EBIT margin was at 20.8% (22.2%)Net profit for the period decreased by 14.2% to CHF 10.7 million (CHF 12.5 million)


"We recorded an encouraging start into the financial year 2014/15 with continued sales growth in Asia. Performance in Europe and North America remained subdued as a consequence of slowing economies and the ongoing transfer of some of our customers' operations to China. Aggressive competition intensified price pressure across all regions. Nevertheless, our EBIT margin remained at a high level giving evidence of our strategy implementation success in innovation, production efficiency and production flexibility," said FranÇois Gabella, CEO of LEM.


Compared to Q1 of 2013/14, sales increased by 5.2% in Q1 of 2014/15; at constant exchange rates sales increased by 9.8%.


Industry segment: no signs of weakness in China

Compared to Q4 of 2013/14, sales in the Industry segment increased by 7.1% to CHF 56.5 million in Q1 of 2014/15. Sales growth was driven by continued progress across all businesses in China, export-led growth in Japan and seasonal factors in the renewable energies businesses. Several of the recently launched products supported the sales performance. Compared to Q1 of 2013/14, sales increased by 5.6%; at constant exchange rates sales increased by 9.9%. Sales in China grew by 50% and in Asia excluding China by 17%. Sales in Europe and North America decreased by 7% and 17% respectively. As a consequence, Asia has become the most important sales region for LEM accounting for 46% of sales, followed by Europe with 42% and North America with 10% of sales. Orders received increased from CHF 55.1 million in Q4 of 2013/14 by 2.0% to CHF 56.2 million in Q1 of 2014/15. EBIT increased by 0.4% to CHF 12.6 million in Q1 of 2014/15.


•Sales in the drives & welding business increased by 4% compared to Q4 of 2013/14. Sales performance in Asia was strong while LEM recorded slow business in the other regions. LEM's market share remained stable.•The renewable energies & power supplies business benefitted from seasonal effects and growing investments in renewable energies in China and Japan. LEM observed a new trend to smaller inverters. In Q1 of 2014/15 total sales increased by 14% compared with Q4 of 2013/14. Compared to Q1 of 2013/14, sales decreased by 5% due to a negative currency impact.•Sales in the traction business increased by 8%. LEM witnessed increased activity in the global traction markets, particularly in the light rail applications. Sales performance was driven by projects in China and Korea.•Sales in the high precision business decreased by 1% compared with Q4 of 2013/14. There was lower demand for medical applications as well as for test & measurement.


Automotive segment: stable businesses

In Q1 of 2014/15, sales in the Automotive segment reached CHF 8.6 million, an increase of 1.7% compared to Q4 of 2013/14. Compared to Q1 of 2013/14, sales increased by 2.9% in Q1 of 2014/15; at constant exchange rate sales increased by 9.1%. EBIT decreased from CHF 1.1 million in the previous quarter to CHF 1.0 million in the reporting period.


•In the conventional cars business, LEM recorded sales growth of 3% compared with Q4 of 2013/14. Demand for LEM's battery management solution remained stable. Business grew in the U.S. and China.•The global green cars market remained weak with low sales and postponed projects in LEM's green cars businesses. Sales in the green cars business decreased by 3% compared to the previous quarter.





Financial calendar

The financial year runs from 1 April to 31 March



13 November 2014

17 February 2015

4 June 2015

25 June 2015

30 June 2015

2 July 2015




Half-year results 2014/15

Third quarter results 2014/15

Year-end results 2014/15

Ordinary Shareholders' Meeting for the year 2014/15

Dividend ex-date

Dividend payment date





LEM - At the heart of power electronics

LEM is the market leader in providing innovative and high quality solutions for measuring electrical parameters. Its core products - current and voltage transducers - are used in a broad range of applications in drives & welding, renewable energies & power supplies, traction, high precision, conventional and green cars businesses. LEM's strategy is to exploit the intrinsic strengths of its core business, and to develop opportunities in existing and new markets with new applications. LEM is a mid-size, global company with approximately 1'200 employees worldwide. It has production plants in Beijing (China), Geneva (Switzerland), Sofia (Bulgaria) and Machida (Japan). With regional sales offices near its customers' locations, the company is able to offer a seamless service around the globe. LEM has been listed on the SIX Swiss Exchange since 1986; the company's ticker symbol is LEHN.

www.lem.com



For further information please contact

Julius Renk (CFO)

Phone: +41 22 706 1250

Email: investor@lem.com





Appendix:


Key figures




In CHF millions



2013/14



2014/15





Change



Change



Orders received



Q1



Q2



Q3



Q4



Q1





Q1 to Q1



Q1 to Q4



Industry segment



56.6



49.9



50.1



55.1



56.2





-0.6%



+2.0%



Automotive segment



8.5



9.3



8.5



8.3



8.5





+0.1%



+2.3%



Total LEM



65.1



59.3



58.7



63.5



64.7





-0.5%



+2.0%







Book-to-bill ratio



Q1



Q2



Q3



Q4



Q1





Q1 to Q1



Q1 to Q4



Industry segment



1.06



0.89



1.03



1.05



1.00





-5.7%



-4.8%



Automotive segment



1.02



1.06



0.94



0.99



0.99





-2.9%



±0.0%



Total LEM



1.05



0.91



1.02



1.04



1.00





-4.8%



-3.8%







Sales



Q1



Q2



Q3



Q4



Q1





Q1 to Q1



Q1 to Q4



Industry segment



53.5



56.3



48.5



52.7



56.5





+5.6%



+7.1%



Automotive segment



8.3



8.8



9.1



8.4



8.6





+2.9%



+1.7%



Total LEM



61.8



65.1



57.6



61.1



65.0





+5.2%



+6.4%







EBIT



Q1



Q2



Q3



Q4



Q1





Q1 to Q1



Q1 to Q4



Industry segment



12.3



15.4



10.6



12.5



12.6





+2.4%



+0.4%



Automotive segment



1.0



1.5



1.3



1.1



1.0





-0.1%



-9.8%



Total LEM



13.3



17.0



11.9



13.6



13.5





+2.2%



-0.4%








Consolidated income statement




April to June





2014/15



2013/14



In CHF thousands









Sales



65 047



61 811



Cost of goods sold



(35 610)



(33 749)



Gross margin



29 436



28 062





Sales expense



(6 013)



(5 752)



Administration expense



(6 221)



(5 149)



Research & development expense



(3 903)



(3 900)



Other expense



(0)



(54)



Other income



252



54



EBIT



13 550



13 261





Financial expense



(8)



(6)



Financial income



39



19



Foreign exchange effect



101



(1 373)







Profit before taxes



13 683



11 901





Income taxes



(2 961)



(2 131)







Net profit of the period



10 722



9 770

















Press release (pdf)







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www.tensid.ch





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