BELIMO Holding AG: Again solid growth and incre...
BELIMO Holding AG / BELIMO Holding AG: Again solid growth and increased net income . Processed and transmitted by NASDAQ OMX Corporate Solutions. The issuer is solely responsible for the content of this announcement.
The Belimo Group had a successful 2014. Sales rose in Swiss francs by 4.5 percent to CHF 493.9 million. Adjusted for currencies, the growth rate was 6.6 percent. In the second half-year, the Americas and Asia/Pacific performed particularly well, while growth in Europe slowed.
Belimo posted operating income (EBIT) of CHF 81.3 million and an operating margin of 16.5 percent. Net income totaled CHF 67.2 million, which equates to CHF 109.52 per share. Return on equity (ROE) was 22.2 percent and return on invested capital (ROIC) 23.4 percent. Cash flow from operating activities rose by 5.0 percent to CHF 74.1 million.
The new production, logistics and administration building in Danbury (CT, USA) became operational on schedule. In Hinwil, Belimo started the construction for the logistics building expansion. Because of these two important investments, free cash flow fell by 46.9 percent to CHF 18.5 million, while cash and cash equivalents dropped 11.6 percent to CHF 92.3 million.
The Board of Directors proposes a dividend of CHF 65 per share to the Annual General Meeting on Monday, April 20, 2015.
Regional development:
Europe. Sales in the European market region grew by 4.3 percent, or 5.0 percent on a currency-adjusted basis. Growth contribution was strong in the United Arab Emirates, France, Switzerland and Poland. The slowdown in the second half-year is primarily due to Austria and the Ukraine. The low price of oil caused a downturn in investments in alternative heating systems in Austria. Growth was strong for water applications in Europe thanks to new product solutions for zone applications and for hydraulic balancing of plants.
Americas. Sales in the Americas market region grew by 4.6 percent, or 8.3 percent on a currency-adjusted basis. Belimo recorded solid growth in all markets, with strong performance in the second half-year in particular. Projects such as the new office building "Rufus 2.0" in downtown Seattle (WA, USA) and the LEED Platinum Project "Torre Cosmopolitan" in Tijuana (Mexico) helped drive growth. Air applications saw solid growth thanks to the OEM business, which was made up primarily of air damper actuators.
Asia/Pacific. Sales in the Asia/Pacific market region grew by 5.1 percent, or 9.3 percent on a currency-adjusted basis. Belimo posted good growth in Australia and the Philippines thanks to major projects, including the "Governor Phillip Tower" in Sydney. South Korea, Malaysia and Singapore were below expectations, as was the contracting business in China.
Net sales by region
| in CHF 1,000 | 2014 | % | Growth in local currencies in % | 2013 | % |
| Europe | 270,359 | 55 | 5.0 | 259,303 | 55 |
| Americas | 170,914 | 35 | 8.3 | 163,461 | 35 |
| Asia/Pacific | 52,646 | 10 | 9.3 | 50,095 | 10 |
| Group | 493,919 | 100 | 6.6 | 472,859 | 100 |
Net sales by application
| in CHF 1,000 | 2014 | % | Growth in local currencies in % | 2013 | % |
| Air | 299,330 | 61 | 6.1 | 287,584 | 61 |
| Water | 194,589 | 39 | 7.4 | 185,275 | 39 |
| Total | 493,919 | 100 | 6.6 | 472,859 | 100 |
Innovation. A major portion of the variable volumetric flow controllers were equipped with the wireless technology near field communication. Before the device is connected to electricity, all the key settings can be made with the convenience of a smartphone app. Belimo Energy Valves(TM) and electronic pressure-independent valves were given small diameters and a safety function. The largely redeveloped product range of fire protection actuators provides additional security in case of fire with a new, patented locking function. At the new Belimo building in Danbury (CT, USA) a much larger water laboratory was built, providing a very good infrastructure for developing valves and conducting quality control.
Outlook. The uncertainties in Eastern Europe and the drop in income from the oil and gas business are leading to noticeable cuts in investments in key regions. The strong economy and the increase in spending on construction should carry on in the United States. Despite the lower energy costs, investments in building automation and energy efficiency are likely to continue unabated. In Asia/Pacific there are potentials in China and India in particular, as spending on infrastructure in these countries continues. High growth rates are also expected for Indonesia and Thailand.
Belimo will see continued growth with new product ranges in fire protection and zone applications. Innovative customer solutions are being designed based on technological developments such as the Internet of Things.
The strong Swiss franc, as a consequence of the discontinuation of the minimum exchange rate against the Euro, has a major impact on Belimo's sales and profitability. Based on the selected scenario (EUR/CHF 1.05, USD/CHF 0.95) and the budgeted growth in sales volume, Belimo expects sales in Swiss francs to be at about the same level as in previous year, with a 2.0-2.5 percentage point decrease in EBIT margin. The goal is to maintain the successful growth strategy. Current investment projects will deliver the expansion of the logistics capacity needed to maintain growth, and work is continuing on optimizing procurement and production processes. The new logistics building in Hinwil will become operational in 2015, which will improve process efficiency in manufacturing and distribution.
In mid-year Dr. Jacques Sanche will hand over responsibility as CEO to Lars van der Haegen, head of Americas. This succession will help support Belimo's continuity of sustainable development.
Key figures of the Belimo Group for the 2014 financial year
| in CHF 1,000 (unless indicated otherwise) | 2014 | 2013 | Change in % |
| Net sales | 493,919 | 472,859 | 4.5 |
| Operating income (EBIT) in percent of net sales | 81,250 16.5% | 81,318 17.2% | -0.1 |
| Net income in percent of net sales | 67,193 13.6% | 62,609 13.2% | 7.3 |
| Cash flow from operating activities in percent of net sales | 74,080 15.0% | 70,574 14.9% | 5.0 |
| Free cash flow in percent of net sales | 18,546 3.8% | 34,921 7.4% | -46.9 |
| Earnings per share, in CHF | 109.52 | 102.57 | 6.8 |
| Dividend per share, in CHF | 65* | 65 | 0.0 |
| Investments | 55,141 | 36,676 | 50.3 |
| Research and development in percent of net sales | 32,415 6.6% | 30,573 6.5% | 6.0 |
| Number of employees at December 31 (FTE's) | 1,388 | 1,314 | 5.6 |
* Proposal to the Annual General Meeting on April 20, 2015.
The Belimo Group is a leading global manufacturer of innovative electrical actuator solutions and valve systems for heating, ventilation and air-conditioning systems.The Group generated sales of CHF 494 million in 2014 and employs close to 1450 people. Information about the company and its products is available on the Internet at www.belimo.com/investorrelations.
The shares of BELIMO Holding AG have been traded on the SIX Swiss Exchange since 1995 (BEAN).
There will be a media information session on the 2014 financial statements at the WIDDER HOTEL in Zurich today, starting at 10:00 a.m.
| Contact | Beat Trutmann, CFO | Phone +41 43 843 62 65 |
| Agenda | Media information session/ | |
| Publication of 2014 Annual Report | March 23, 2015 | |
| Annual General Meeting 2015 | April 20, 2015 | |
| Semiannual Report 2015 | August 4, 2015 | |
| Publication of 2015 preliminary results | February 10, 2016 | |
| Media information session/ | ||
| Publication of 2015 Annual Report | March 21, 2016 | |
| Annual General Meeting 2016 | April 25, 2016 |
The press release can be downloaded from the following link:
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: BELIMO Holding AG via Globenewswire
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