SFS Group: Solid and Profitable Growth in Core Business in H1 2014

SFS Group AG achieved organic sales growth of 5.6% in its core business in the first six months of 2014, excluding the effects of exchange-rate movements and divestments. Operating profit before amortization (EBITA) increased 11.1% to CHF 88.8 million. In a positive market environment with additional tailwind from successful products, SFS grew its core sales excluding deconsolidation and currency effects by 5.6% compared to the previous year. The 5.6% organic growth in the core business was negatively affected by currency translation (-1.7%) and deconsolidation effects (-2.1%) as well as by a sharp reduction in sales from the non-core trading activities in Engineered Components (-4.4%), leading to a 2.6% decline in reported Group sales compared to the first half of the previous year. Thanks to the growth of high-margin products, SFS increased its operating profit before amortization (EBITA) by 11.1% to CHF 88.8 million. This widened the EBITA margin for the first half of 2014 to 13.6% of sales (H1 2013: 12.2%). Group net income increased 23.3% to CHF 45.8 million.