Half-year results reflect difficult market developments in Europe | 21.08.24

This is an ad hoc announcement pursuant to Article 53 of the Listing Rules (LR) of the SIX Exchange Regulation AG

Feintool achieved a turnover of CHF 390.1 million and an operating profit (EBIT) of CHF 0.2 million in the first half of 2024. The currently very demanding market environment in Europe leads to low visibility, which is why Feintool has suspended its outlook for 2024 – as already communicated on July 17, 2024. The company is responding with the efficiency and growth program “Level-up 2026!”.

As a leading supplier of high-precision components for the automotive and industrial sectors, the Feintool Group’s performance in its various target markets varied from region to region in the first half of 2024.

Feintool posted strong results in Asia and the United States: sales in these regions were significantly higher than in the same period last year, with increases of 11% and 16% respectively. In Europe, trade in internal combustion engine components was generally in line with expectations.

However, the Group faced major challenges in the field of electrolamination stamping in Europe for several reasons: political uncertainties surrounding electromobility (short-term suspension of subsidies, particularly in Germany), an economic slowdown, inflationary pressure and energy prices that are still high compared to other countries.

These negative effects led to a sharp decline in electric vehicle sales in some markets, while the industrial electric motor trade saw an unexpected, sharp decline in sales. This led to overcapacity among automakers, resulting in individual Battery Electric Vehicle (BEV) programs being postponed, reduced in volume or even cancelled.

Given these challenges and the unfavorable underlying conditions, Feintool has responded in two ways: firstly, with cost savings and a restructuring program that includes the relocation of large-scale production from Lyss (Switzerland) to other Feintool locations, primarily the Czech site in Most. The second focus is a future concept to further expand the Group’s high level of expertise and thus increase innovation and competitiveness.

Expansion in Asia, investments in the US
Feintool continued its success story in Asia in the first half of 2024. As a major supplier of high-precision components in Asian automotive production, we want to consolidate our strategic position in the region and continue to grow there. Feintool is therefore expanding into India. Work on the new location in the Pune metropolitan region is proceeding according to plan. The foundation stone is scheduled for the third quarter of 2024. The start of work on the production of fine blanked parts for the fast-growing automotive industry on the subcontinent is planned for the second half of 2025.

In the US, the signs point to growth. In North America, Feintool benefits from investments in its Nashville facility and a strong market position in fineblanking and forming. We also enjoy the confidence of our US customers in Feintool’s innovation and competitiveness.

Outlook: Sustainably strengthened market position with an agile portfolio
There is a global need to reduce CO₂ emissions and work climate-neutral in the future. The transformation in the automotive industry will proceed accordingly. Feintool develops, builds and distributes technologies for electric and hydrogen mobility. This makes us one of the world’s largest suppliers of main drives for electric cars and electric commercial vehicles. We also supply our components to the markets for renewable energy generation from wind and hydropower and industrial electric drives, such as for pumps, machines and building management systems.

Feintool is well on track in the long term, with an order book expecting a lifecycle volume of CHF 5.7 billion by the end of the first half of 2024. However, Feintool does not expect the market situation to improve significantly in the second half of 2024. Visibility is currently still low, which means that no reliable forecasts can be made. For this reason, Feintool is suspending its forecast for 2024. The recently launched ‘Level-up 2026!’ efficiency and growth program will sustainably improve profitability for 2026 in 2024 and 2025, which is why we continue to target an EBIT margin of more than 6%.

About Feintool

Feintool is an international technology and market leader in electrolamination stamping, fineblanking and forming. We produce high-quality precision parts in large volumes from steel. We supply the automotive industry, suppliers of equipment for energy infrastructure and all kinds of high-end industrial manufacturers. Feintool products are perfectly aligned with the megatrends for green energy generation, storage and use.

Our core technologies deliver measurable cost efficiency, consistent quality and improved productivity. Feintool is constantly expanding the horizons of its production methods and developing intelligent solutions, innovative tools and state-of-the-art production processes in line with customer needs.

The company was founded in 1959 and is headquartered in Switzerland. It has 18 production sites in Europe, the USA, China, Japan and India with 3,200 employees and 85 trainees. Feintool is listed on the stock exchange and is majority owned by the Artemis Group.

Overview of key financial indicators

* incl. restructuring costs

Feintool International Holding AG

Industrial Ring 8
3250 Lys
Switzerland

Media spokesperson

Karin Labhart
Phone +41 32 387 51 57
Mobile +41 79 609 22 02
[email protected]
www.feintool.nl