Gurit Reports Growth in Net Sales and Operating Profit Margin for Fiscal Year 2018

Gurit reported net sales of CHF 425.3 million for the full year 2018. Gurit achieved an operating profit of CHF 28.6 million (6.7% of net sales) and net profit amounted toCHF 19.9 million in 2018. Gurit`s Composite Materials Business achieved solid results in its various market areas. Wind material demand grew by 3.1% in 2018 over 2017 in reported Swiss Francs and was able to increase its sales in the second half of 2018 by 13% versus the first half. In total, net sales in the Composite Materials Business increased by 6.1% (currency-adjusted: 4.1%) year-on-year from CHF 198.9 million in 2017 to CHF 211.1 million in 2018. Gurit`s Tooling Business reported yet another excellent year. Net sales increased by 29.1% (currency-adjusted: 27.0%) to CHF 118.5 million in 2018 compared to net sales of CHF 91.8 million in 2017. Gurit’s Aerospace Business reported net sales of CHF 49.9 million, which represents an increase of 5% (currency-adjusted 2.6%). Slower build rates of a major European OEM recovered in the second half-year and have been supported by increasing demand from an American OEM. Gurit`s Composite Components Business reported net sales of CHF 16.9 million in 2018 compared to net sales of CHF 22.3 million in 2017. This represents a sharp decrease of 24% in reported Swiss francs (-26.5% on a currency-adjusted basis). The abrupt demand decline in Gurit’s biggest car part volume program in the first six months and the slow start-ups of several new programs in the second half year of 2018 caused this sales reduction versus 2017. As communicated on December 19, 2018, Gurit decided to re-structure and divest its Composite Components Business.