Topic: [FI/N] Georg Fischer
The restructuring programme announced in May 2009 has been largely implemented and the remaining measures will be fully carried out as planned by mid-2010. The cost base was substantially reduced in 2009, and Georg Fischer enters 2010 as a leaner and fitter company. As shown in the second half of 2009, break-even can be achieved at the present volume. The operational leverage in the event of a market recovery is therefore substantial.
Regarding 2010, demand has slightly improved in the last few weeks and months on the back of rising production and investment levels in Asia as well as in several sectors in Europe, including the car industry. Uncertainties definitely remain, however, regarding currency and raw material trends. All in all, the sustainability of this rebound needs to be confirmed during the course of the year. If that were the case, achieving a positive net result for the year would be possible.
Medium-term, GF sees grounds for optimism as Georg Fischer is well-positioned to benefit from its strong Asia presence as well as from long-term trends in water conservation, mobility and production efficiency. Given the sustainable cost base reduction, the company reiterates its 2012 objective of an EBIT margin of eight percent, assuming a sustained market recovery as of 2011.