Walter Meier has released its half year report showing mixed development across the Group Divisions.
Thanks to acquisitions made last year, the climate and manufacturing technology group Walter Meier saw net sales rise by 6.9 percent on the same period of the prior year, increasing to CHF 370.7 million in the first half of 2013.
The net sales growth is mainly attributable to the consolidation of Port-A-Cool – acquired in 2012 – for the full six months of the period.
Driven by prior-year acquisitions and the reallocation of net sales from Climate, the Humidification & Evaporative Cooling Group Division generated net sales well in excess of the prior-year level.
The ClimateGroup Division managed slight growth in net sales, which were up 1.3 percent on the prior year. This overall increase includes external sales of the Barcol-Air Group, acquired in 2012.
The Group Division Tools just about managed to maintain the good level of net sales generated in the prior year (–0.1 percent). The core markets – the USA, Russia and Switzerland – remained stable.
Machining Solutions suffered a drop in sales of 21.9 percent compared to the prior year. Walter Meier has attributed this to the Swiss metalworking industry’s reluctance to invest.
Based on current understanding, Walter Meier remains confident that net sales in the fiscal year 2013 will exceed the prior year.
Adjusted EBIT could fall short of the prior-year level, however, as could net income for the period. The positive special effect described above will probably not be sufficient to make up for the negative impact that the significantly higher tax rate will have on net income.
As set out previously, these expectations are on the condition that Walter Meier’s investment portfolio remains unchanged. However, the possibility of further focus measures cannot be ruled out.