The logistics company Swisslog increased net sales by 16.6% to MCHF 355.3 and operating profit (EBITA) by 15.2% to MCHF 14.4 in the first half of 2007. After incurring a loss in the same period last year it realized a net profit of MCHF 8.8. The financial situation of the Group has improved again.

"The net result was not affected by negative one-time effects, which allowed us to realize the net profit we were striving for," CEO Remo Brunschwiler comments on the half-year result. Besides net sales and operating profit (EBITA), order intake saw an increase as well (+9.1% to MCHF 279.5). Equity rose by MCHF 21.4 to MCHF 151.9, which corresponds to an equity ratio of 33% at 30 June 2007.

Net sales of the Warehouse & Distribution Solutions division grew from MCHF 195.5 to MCHF 233.4 in the first six months, an increase of 19.4% compared to the same period last year. Healthcare Solutions managed to raise net sales from MCHF 103.7 to MCHF 116.8 (+12.6%) while Consulting Services/Wassermann recorded a drop from MCHF 5.8 to MCHF 5.2. The Group’s order backlog is solid and grew by 5.8% from MCHF 449.2 to MCHF 475.1.

Swisslog’s profitable growth was accompanied by a targeted expansion of the workforce from 1 804 to 2 019, with the acquisition of Accalon accounting for a considerable share (148 employees). The headcount was reduced only at Consulting Services/Wassermann, a reaction to declining net sales.

Operating profit (EBITA) improved again

EBITA grew from MCHF 12.5 to MCHF 14.4 in the first semester 2007, thereby continuing the positive development of the previous year. Warehouse & Distribution Solutions achieved an increase from MCHF 10.2 to MCHF 11.0 and Healthcare Solutions from MCHF 8.1 to MCHF 9.7. Whereas the increase at Warehouse & Distribution Solutions is primarily due to profits arising from the sale of real estate not needed for operations, at Healthcare Solutions it is a result of net sales growth and was accomplished in spite of higher costs related to a patent infringement claim. Consulting Services/Wassermann saw an improvement in EBITA, but the figure remained negative (MCHF -0.7) due to lower net sales. The Group’s EBITA margin is 4.1%, unchanged from the same period last year because of the shift in proportions between new orders and customer support orders.

Return to profitability

Recording a net profit of MCHF 8.8 (vs. a net loss of MCHF -15.6 in the first semester 2006), Swisslog achieved the announced return to profitability. This is attributable to the following factors: EBITA increased (MCHF 1.9); in contrast to the same period last year, no goodwill impairment was required (MCHF 10 in the first half-year 2006); the financial result improved (MCHF 11.5); and Iower income tax expenses were incurred (savings of MCHF 1.0).

Acquisitions of Accalon and Collett

The acquisition of the Swedish company Accalon, a leading manufacturer of conveyor systems and stacker cranes, was made in the first half-year. This will allow Swisslog to improve its competitiveness in the important market segment of less complex projects. At the beginning of August, an agreement was signed to purchase Oslo-based Collett, our current partner for planning, installation, and support of pneumatic tube systems in Norway. This acquisition, which is still subject to merger control clearance by the Norwegian Competition Authority, will strengthen Swisslog's position in its Healthcare Solutions core business.

Outlook

Compared to the first half of the year, Swisslog anticipates a higher order intake in the second half in view of the order pipeline. On the basis of order backlog and the positive business environment, the company expects an increase in net sales of around 10% and a continued improvement of operating profit (EBITA) for the current business year. The EBITA margin, however, is likely to remain at last year’s level because of the shift in proportions between new orders and customer support orders.

About Swisslog

Swisslog is a global provider of integrated logistics solutions for warehouses, distribution centers and hospitals. Its comprehensive services portfolio ranges from building complex warehouses and distribution centers to implementing Swisslog's own software. In addition Swisslog provides intra-company logistics solutions for hospitals as well as software and consulting services in the field of supply chain management.

Swisslog's solutions optimize customers' production, logistics and distribution processes in order to increase flexibility, responsiveness and quality of service while minimizing logistics costs. With years of experience in the development and implementation of integrated logistics solutions, Swisslog provides the expertise that customers in more than 50 countries around the world rely on.