Cautious investment activity noticeable in Tornos’ course of business
- Currency-adjusted net sales slightly below previous year
- Automotive and medical technology shoring up demand
In the first nine months of the year under review, orders totalling CHF 126.3 million (prior-year period: CHF 148.8 million) were recorded. In geographic terms, the trend observed over the past few months has been confirmed: Greater China's willingness to invest has become much more cautious but this was partially offset by higher demand from the United States. In Europe, demand was unable to match the very strong figures of the previous year. In terms of products, demand was driven mainly by high-end machines, while customer orders for standard machines lagged behind expectations. Demand was strongest in the automotive and medical/dental technology markets. In the watchmaking industry, where investment activity was sharply reduced since the beginning of the year, Tornos was however able to secure several major orders.
Currency-adjusted net sales slightly below previous year
Net sales (at the end of nine months) amounted to CHF 117.9 million, corresponding to a decrease of 6.7% or CHF 8.4 million compared with the prior-year period (CHF 126.3 million). Adjusted for exchange-rate effects, net sales come to CHF 124.7 million, just 1.3% below the prior-year period. Third quarter net sales at CHF 35.3 million were almost on a par with the prior-year figure (CHF 36.0 million).
The operating result (EBIT) amounts to CHF -1.9 million (2014: CHF 0.8 million). Adjusted for exchange-rate effects, EBIT amounts to CHF 1.2 million. Thanks to cost discipline, Tornos would therefore have succeeded in beating the prior-year result.
The net result came to CHF -3.45 million (prior-year period: CHF 1.4 million) and was affected by negative currency effects of CHF 0.5 million (prior-year period: positive effects of CHF 1.0 million).
Provided that certain major customer projects can be completed on schedule by the end of the year, Tornos expects the 2015 operational result (EBIT) to be balanced.
Restriction to publication of semi-annual and annual results
The Tornos Group will continue to publish semi-annual and annual results, as stipulated in the accounting standards and by the SIX Exchange Regulations. However, the company will no longer publish quarterly results, owing to the volatile business trends from quarter to quarter. This change will take effect as of the 2016 financial year.