Ad hoc announcement pursuant to Art. 53 LR
Tornos continues to improve its performance
- Significant sales gains in medical and dental technology and in watchmaking industry
- Marked increase in demand for SwissNano machines produced in Switzerland
- Improved profitability (excluding special effects)
- Record order backlog
Overall, Tornos generated order intake of CHF 194.1 million (previous year: CHF 204.6 million, -5.1%) and net sales of CHF 181.4 million (previous year: CHF 171.5 million, +5.8%) in fiscal year 2022. EBIT2) decreased from CHF 20.6 million to CHF 16.4 million, which is attributable to special effects. Excluding the write-back of value adjustment provisions in the amount of CHF 4.8 million, EBIT2) for the financial year 2022 would come to CHF 11.6 million (2021: CHF 10.1 million, excluding the write-back of value adjustment provisions in the amount of CHF 9.8 million and excluding the book gain from a property sale of CHF 0.7 million). As a result of the changed market conditions and the usability of its inventory, the Tornos Group has introduced a refined method for value adjustment provisions that takes even better account of the specific circumstances at Tornos. This method is described in detail in the Annual Report 2022 on page 43 (note 2.9 Inventories) and page 50 (note 4.1 Inventory obsolescence).
The EBIT margin for the Tornos Group for the 2022 financial year is 9.1%. Excluding the effect of the write-back of provisions, it amounts to 6.4% (previous year: 5.9%, excluding special effects).
|
(CHF 1 000) |
2022 |
2021 |
|
EBIT2) (margin) |
16 441 (9.1%) |
20 581 (12.0%) |
|
EBIT adjusted2) (margin) |
11 631 (6.4%) |
10 131 (5.9%) |
Further increase in orders for medical and dental technology
In the 2022 financial year, the Tornos Group remained very successful in its largest sales market, medical and dental technology. Here, it increased its order intake from CHF 40.1 million to CHF 41.0 million (+2.2%). Tornos made significant gains in the watchmaking industry, with orders received rising from CHF 13.9 million to CHF 21.4 million (+53.5%). At CHF 6.3 million, Tornos also won many more orders from the aerospace industry in 2022 (2021: CHF 1.0 million). At CHF 18.4 million, orders from the automotive industry weighed significantly less in the balance than in previous years. At CHF 68.4 million, the order backlog at the end of 2022 is again significantly higher than the corresponding figure for the previous year (end of 2021: CHF 59.3 million).
Significant rise in sales at SwissNano
The SwissNano Swiss-type automatic lathe, produced in Switzerland, again had considerably more customers in all sales markets in 2022 than in the previous year. Demand for machines produced by Tornos in the Taiwan region also rose sharply. Due to the local coronavirus restrictions, which were again significantly tightened, production of Tornos machines in China was at times severely limited during the year under review.
Service and spare parts business expanded further
Tornos’ service and spare parts business continued to perform well, with sales in this area rising by 7.3% compared with 2021. The DECO 10 Plus offer, whereby Tornos customers could have their older DECO 10 machines upgraded to the latest technology, made a major contribution to this pleasing development. Tornos also buys older systems back and – after fully reconditioning them – puts them back on the market in the spirit of a circular economy.
Infrastructure projects
The Tornos Group completed or pressed ahead with a number of infrastructure projects in 2022, including in São Paolo (Brazil), where Tornos opened a 300 square-meter Customer Center, and in Kąty Wrocławskie (Poland), where the Group brought a new production plant into operation. Here, it primarily overhauls and modernizes older DECO 10 systems. There are currently around 40 qualified employees working for Tornos in Poland. Some of them are active worldwide in order to ensure an efficient, high-quality global customer service.
In the Taiwan region, the shell for a new production hall was completed. The plant is expected to be ready for operation by the end of 2023 and create optimum conditions for the continued successful production of medium- and lower-priced Tornos machines in the Taiwan region.
Turning sustainable
Responsibility towards the environment and people is given high priority at the Tornos Group. In this perspective, Tornos founded the initiative "Turning sustainable" regrouping all of the Group’s activities linked to sustainability and environment, social, and governance (ESG) and supporting the ongoing global paradigm change. The program is based on the United Nations Sustainable Development Goals (SDG) and takes into consideration the legal frame introduced in Switzerland. Next year, for the 2023 reporting period, Tornos will publish its first non-financial statements.
Reduction of share capital
At the 2022 Annual General Meeting on April 13, the shareholders of Tornos Holding AG agreed to the reduction of share capital by CHF 49,694,177.50 to CHF 19,877,671.00 by reducing the par value of all registered shares from CHF 3.50 to CHF 1.00.
Distribution to shareholders
At the General Meeting on April 5, 2023, the Board of Directors will propose to the shareholders a tax-exempt distribution of CHF 0.30 per share, to be paid out from capital contribution reserves.
Outlook
In view of its record order backlog, the Tornos Group is very well positioned for 2023. However, it is still difficult to make concrete forecasts due to global economic developments, which are still impossible to estimate. The ongoing war in Ukraine and the coronavirus pandemic in China, which has not yet ended, uncertainty regarding the availability of raw materials and supplier parts, and burgeoning fears of inflation and recession bring with them many uncertainties. However, for Tornos, some of these developments also present opportunities. The trend towards industrial relocation in the US and Europe created by the disruptions in global supply chains is generating new demand for the products of Tornos. With its portfolio, which is excellently aligned to customer needs, its steadily expanding services and its flexible structure, the Tornos Group remains well equipped for a wide variety of scenarios.
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