Adval Tech expects to report lower profits
August 04, 2008 | by Adval Tech
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August 04, 2008, Niederwangen. The Adval Tech Group expects to report lower profits in its semi-annual financial statements for 2008. It anticipates that operating earnings (EBIT) will fall some CHF 2 million short of the equivalent figure for the first half of 2007 (CHF 7 million). At the net profit level the outcome will be slightly positive following the expected decline of some CHF 4 million.
The decline in profits foreseen by Adval Tech in the first half of 2008 has been triggered primarily by two developments in the Injection Molding Division, which have resulted in inadequate capacity utilization: the cancellation and postponement of a number of significant moldmaking orders in the consumer goods sector in the US dollar zone and the slump in the market for molds used in the manufacture of optical discs.
The improvement in EBIT at the Stamping and Forming Division and the first contribution to EBIT by the recently acquired Omni Group are insufficient to enable the Adval Tech Group to offset the resulting shortfalls in full. Net profit will also be adversely affected by a non-recurring financial expense of some CHF 2million in connection with the bridging loans for the acquisition of the Omni Group.
Adval Tech will publish its detailed semi-annual financial statements and its outlook for the expected trend in the second half of the year on August 28, 2008.
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Source: Adval Tech, Press release